Uh oh. Things in the Ultimate Crony Capitalist State (UCCS aka China) are not going well. One gets a sense that an economic block may have just been removed somewhere (or perhaps a bandage ripped off) and things are flowing again in the economy.
China, as we have written for quite a while (along with many others) is in serious trouble. Underpinning the “Chinese Dream” is piles and piles and piles of (likely bad) debt.
Juiced data coming out of the Ultimate Crony Capitalist State? We are shocked.
This is what happens when the government runs the economy without the feedback mechanism of lawsuits and a free press. People and businesses just up and leave.
China is overbuilt, over leveraged, and over managed.
China, as we’ve written many times before is the ultimate crony capitalist state. We’ve also said many times that one should be very weary of any official information coming out of China. The country has been slowing for 7 quarters. That we know. But it could be a bigger slowdown than many think.
We have written often about China and the cronyism which seeps into every corner, every nook and cranny, of the Chinese economy. It is The Ultimate Crony Capitalist State.
Since President Obama was re-elected, it can be said that the most important shift in political power for the world in 2012 happened in Beijing. (Of course we still have a month and a half.)