China's economic growth has been unprecedented. Many economists forecast
that within 1 decade, their GDP will eclipse the GDP of the United
States. But these forecasters overlook the Chinese
policies that created the biggest economic bubble in history and the
likelihood that this bubble will either deflate slowly or burst. Regardless of the degree of bursting, as a consequence, many global economies will inevitably collapse.


The biggest component of their economic bubble is construction and
building, principally Real Estate. It's crashing would play out worse
than the 1989 Real Estate crash in Japan. Before their bubble was
started, Japan's economy was robust and balanced. When their Real
Estate bubble started growing, a significant percentage of their
population were able to buy into the early stages of their Real Estate
bubble and economically prosper. In China, a much smaller percentage of
their population, the connected and early adopters of Chinese economic
reforms, benefited and prospered from the rise of Chinese Real Estate.
Even though the rising values of Chinese Real Estate were not
predicated by a credit bubble, the rate of speculation quickly drove up
prices way beyond what the majority of the growing middle class could
afford. Combined with the systemic corruption of local government
officials, a Chinese Real Estate crash could be socially explosive.
It may be that Beijing has lost control of their economy and is
implementing measures to delay and deal with the coming crash and social
unrest. It may also be that other countries are implementing measures
to delay and deal with the coming crash and social unrest their
countries.
is not going to happen, most of the projects are state owned, meaning they have plenty of leverage and 100% "paid" (by the state), whether the state is able to sell or mot is a different question.
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