Revised Comment Policy
Commenters must provide an e-mail address. This change is meant to fend off spam comments from advertisers. These have become more and more of a problem over time. Comments must also be approved by me before they are published. If your comment does not appear, I didn't approve it, or didn't get around to reading it yet.
Comments should be relevant to the post they appear with and should add to the discussion. Generic doomer comments will not be published. If you disagree with my assessment of something, you must explain why you disagree. If you insult me personally, or it's obvious to me that you are mentally unbalanced, as so many people are, I will ban your e-mail and IP addresses — Dave
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I recently posted about China in China's Economic Miracle Is Not So Miraculous Anymore (December 12, 2011). A lot rides on what happens in China. Most importantly, China's growth, along with that of the other BRIC countries (Brazil, Russia, India & China) has driven rising global commodity prices, including the price of crude oil. If China's pseudo-growth (ghost cities, real estate bubbles) comes to an end, commodity prices could plummet. We could see a price swoon in 2012 just like the one we saw in 2008-2009.
As Gordon Chang points outs in the video below, Europe is China's biggest trading partner. The EU is also in big trouble, so it's hard to believe China's official export growth numbers. Chang is the author of The Coming Collapse of China and a columnist at Forbes.com. Chang has been sounding the alarm about China for many years now. He is more convinced than ever before that China's economy is crashing. Is Gordon right this time?
We also have a video featuring hedge fund manager Jim Chanos, who has been shorting China for some time now. He is merely one of many people running hedge funds who see the writing on wall for China. Unlike Gordon Chang, who clearly wants to be proved right, Chanos, Hugh Hendry and other hedge fund guys now have a large vested stake in what happens in China. These guys tend to do their homework. If they don't, they go belly-up.
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