mate, most people have slept through the monster that has been...

mate, most people have slept through the monster that has been born in china, and have no idea how big it is, it will make subprime in the US look like an ant on the hill..

China was a dirt poor country, even in the 60's there was no cars over there, they were just poor.. not even stainless steel sinks or kitchenware.. they were dirt poor 3rd world country.

When America and the west started booming in the 80's and 90's and we moved our factories over there, money flooded into the country and it started to take off joining the rest of the world (well a small part of it as 90% of people there still only earn $2 a day on average).

lots of people started working, companies started, farmers were coming from all over to go to the city and work. and the chinese joined the rest of the world becoming more a 1st world country.

When the GFC struck the west stopped importing as we all became broke, all the jobs in china went, all the factories closed down and the country fell over.

So what the country did was it told its banks to lend lend lend and stimulate the economy, and in china the goverment wares the risk of defaults.. if you cant pay, china bails the bank out.. so banks pumped out money to every tom dick and harry, a few trillion each year, all high risk loans they didnt care about brcause the government took the risk.

This money flooded into housing, and they started to build mega cities the size of melbourne from scratch, somthing like towards 100mil new homes/apartements.. new hospitals.. cities the size of Sydney from scratch out of the dirt.

So all the people that lost their jobs in teh factories went and worked building housing apartements.

problem was he people buying them were all the people getting paid to build them or making money from the money being pumped out by the banks.

This stopped 3 years ago, and the governemnt stopped bailing out bad loans.

for the last 2 years trillions has been flushed down the toilet in china.. lots of bad loans, private companies strugling to get finance and having to go to high cost shadow banking.

all this money was leant out, to people who had work created by the money being lent out.. now the money has stopped all the jobs have gone and china is gringing to a halt

thats why our exports to china is down massivly, and why all the iron ore, coal, and everything else prices have dropped.

MASSIVE global financial crysis is coming.. Australia is screwed!