{"id":17457,"date":"2016-02-08T11:37:15","date_gmt":"2016-02-08T16:37:15","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17457"},"modified":"2016-02-08T11:37:15","modified_gmt":"2016-02-08T16:37:15","slug":"chinas-6-6-trillion-toxic-loan-problem","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17457","title":{"rendered":"China\u2019s $6.6 Trillion Toxic Loan Problem"},"content":{"rendered":"
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China\u2019s $6.6 Trillion Toxic Loan Problem\u00a0<\/a><\/h3>\n<\/div>\n
Rotting Vegetables<\/strong><\/div>\n
\n

\u201cAs long as you\u2019re green, you\u2019re growing.\u00a0 As soon as you\u2019re ripe, you start to rot,\u201d once remarked Ray Kroc, mastermind of the McDonald\u2019s franchise empire.<\/p>\n

At the moment, no truer words can be spoken for China\u2019s ripe economy.\u00a0 The Middle Kingdom\u2019s 30-year economic boom is being overcome with the unpleasant odor that befalls rotting vegetables.\u00a0 What\u2019s more, there\u2019s no way to reverse it.<\/p>\n

\"P1180759\"<\/em>Photo credit: fmh<\/p>\n

Economic activity in China is stalling out.\u00a0 All of the sudden, the mistakes that were hidden by a growing economy are surfacing en masse.\u00a0 Excess capacity is turning up in all corners of the economy and no one knows what to do about it.<\/p>\n

Each day, it seems, new rot comes to bear upon Beijing\u2019s central planners.\u00a0 Somehow the miracle workers have lost their hot hand.\u00a0 A slowing economy, falling stock market, exodus of wealth, and weakening currency are not conforming to the graphs and statistics reported in the latest blueprint for the planned economy.<\/p>\n

How could it be that the professional politicians, who\u2019d sparkled with genius all these years, so grossly missed their targets?\u00a0 Aren\u2019t the talented men, who\u2019d lorded over a contrived capitalism all these years, capable of fixing this?\u00a0 Perhaps these are the wrong questions to be asking.<\/p>\n

\"China's<\/p>\n

China\u2019s Politburo \u2013 from left to right, Zhang Gaoli, Liu Yunshan, Zhang Dejiang, president Xi Jinping, prime minister Li Keqiang, Yu Zhengsheng, Wang Qishan (Wang is running Xi\u2019s anti-corruption effort. If you want to find him, go to\u00a0Zhongnanhai<\/a>\u00a0and ask for Wang\u2019s wing).<\/p>\n

Photo credit: Carlos Barria \/ Reuters<\/p>\n

Individual Preferences<\/strong><\/p>\n

Simply put, an economy cannot be executed by a central government to fulfill the objectives of a five year plan.\u00a0 At times this may appear to be so.\u00a0 But these instances are mere coincidence\u2026not the result of an erudite centralized mastery.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

China\u2019s $6.6 Trillion Toxic Loan Problem\u00a0 Rotting Vegetables \u201cAs long as you\u2019re green, you\u2019re growing.\u00a0 As soon as you\u2019re ripe, you start to rot,\u201d once remarked Ray Kroc, mastermind of the McDonald\u2019s franchise empire. At the moment, no truer words can be spoken for China\u2019s ripe economy.\u00a0 The Middle Kingdom\u2019s 30-year economic boom is being […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,2045,125,130,11763,8446,12250],"class_list":["post-17457","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-beijing","tag-central-planning","tag-china","tag-mn-gordon","tag-politburo","tag-toxic-loans"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17457"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17457\/revisions"}],"predecessor-version":[{"id":17458,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17457\/revisions\/17458"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}