China is in big trouble, something I have been saying for a while. Individuals and governments cannot defy economic gravity. When you monkey around with the FREE MARKET this is what you get:
I particularly like this quote.
China is a poster child for the Austrian school of economics' theory of the business cycle. After undertaking the biggest stimulus program the world has ever seen in response to the global financial crisis, the country is drowning in unproductive investments financed with credit.
You cannot legislate your way to wealth or prosperity. Every attempt in the past or in the future will be met with the same result. Otherwise we would all be filthy rich by now. Real wealth comes from savings, good investment, and increased productivity on the supply side. The more we produce (directed by consumer preference, not government regulation) the more wealthy we become.
Enough with the Crony Capitalism.
I wonder how much further ahead (and less wasteful) we would be if the business environment was unencumbered by artificial demand created by some politician who thinks they know better? (Think interest rates, cash for clunkers, energy rebate programs, tax breaks for certain companies, pet projects, etc, etc)