Over 100,000 factories in China are to close by the end of the year. Chinese plant owners are abandoning their plants, unable to pay their bills, and abandoning workers with months of back pay unpaid. That is so serious that riots are breaking out in Chinese cities, and even now there is 10 Pct unemployment in some of the biggest exporting cities in provinces like Guangdong. Unemployment in the cities is one thing that scares China. That’s why they came up with that $500 billion stimulus plan. Compared to the size of the Chinese economy, that’s like the US coming up with a $2 trillion economic stimulus. Such a sudden and immense move is unheard of in China. It’s said that China is actually buying some of their own inventory that is stacking up. ...."
This comes from a good article -
World Demand collapsing by Christopher Laird, PrudentSquirrel.com November 20, 2008
now at http://www.financialsense.com/fsu/editorials/laird/2008/1120.html
