Check out on google "Muddy Water Chinese Stock fraud" or my...

Check out on google "Muddy Water Chinese Stock fraud" or my friend "John Hempton Bronte capital Chinese stock fraud" or another firm Citron http://www.citronresearch.com/index.php/2011/06/16/harbin-electric-loan-fraud-and-the-docs-to-prove-it/

All these firms make their living out of spotting multi billion dollar companies who are completely fraudulent, that is most of their revenue didn't ever exist

There are dozens that have been uncovered in the last 6 months alone. These are not fly by night operations they are NYSE listed billion dollar companies .

John Paulson lost $500M on one of them.

All of them are extremely sophisticated frauds that are largely a fiction.

This mirrors my in-country experience and my reflections on there entire culture.

There is so much written about their cutlural ways "we think in terms of 3 months the Chinese think in terms of multiple decades". How many times have I heard that one. its complete nonsense, we have morphed the most unstable major power in the history of the modern world into some Confuciusion miracle strategists . When have the Chinese thought in terms of decades? During Mao's reign? How about chiang kai shek ? The boxer rebellion? The cultural revolution?

Centralised state control and money printing when executed by the western central banks is considered a major cause of the situation we now find ourselves , yet the myth of the Chinese infallible economic ascendancy is so pervasive using much more draconian methods goes unquestioned. In 2008 their system collapsed and they stimulated their way back to life by lending our nearly a 3rd of their GDP in a single year, they put nearly 1.2 trillion into the economy in one go, of course it went into construction where else would that much money go so quickly?. We assume the Chinese will re capitalize their banks from reserves, this puts their net debt to GDP ratio at near 200%, which puts them in a worse mess than Greece.

Ive been up and close to the Chinese banking processes , supervision and regulation at its a complete joke