Lost amid the Democrat/Media-produced circus side-show of whether Herman Cain is a serial sex-offender and the very real crisis in Europe is the deteriorating economic situation in China. China, often portrayed as an unstoppable force in the media and among those who have given up on the United States, is on the verge of a major growth reversal bordering on a potential collapse.
Per the Investor’s Business Daily:
The cause: China’s imploding real estate market. Since late summer, Chinese home prices have tumbled, partly a result of Chinese government policies intended to keep the economy from overheating.
Barclay’s Capital Research predicts China’s home prices will fall 10% to 30% next year, hitting the economy hard — and putting at risk the Chinese economy’s 20-year string of 10% average GDP growth.
Much of China’s growth over the past three years has been fueled by a massive pile of debt. Chinese banks have lent an astounding $8 Trillion since 2008 — an amount that dwarfs the Eurozone’s $4 Trillion in debt.
That debt binge is now abruptly ending as China begins to ratchet up interest rates and limit home buying to keep prices in line. An epic bust is coming.
The United States can and will be the world’s dominate economic power far into the future if the current regime in Washington is dispatched in November 2012 and a business friendly environment established which will lure major investment and job creation back to America as China will no longer be the magnet for investment and a stable manufacturing environment and the European Union will be in shambles.