China's boom has been been created by free trade, debt, forced urbanization and market domination by corporations.
1 The free trade policy of the world has taken manufacturing jobs and created wage stagnation .2.The forced urbanization by china has created debt and large ghost towns in China. 3. The goals of china to dominate world trade has created over capacity.
The outcome. China has over capacity from failing to follow demand and supply rules of markets. They have large ghost cities too expensive for the average citizen. China has reverted to sovereign domination of nations with debt and infrastructure projects to help keep their economy flowing.
The effect is an economy that has over capacity for domestic production, building and international projects. A large part of china's expansion into the world is to hide their debt crisis which is now being passed onto other nations in the form of infrastructure.
Their over capacity is being substituted by external projects but this can not cure their problems. Their expansion into world projects is an effort to plug holes in the titanic.
BHP Price at posting:
$37.52 Sentiment: Sell Disclosure: Held
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