World's Biggest Property Bubble: China's Ghost Cities Revisited; 64 Million Vacant Properties

I have done many stories on China's ghost cities. So have others. However, yet another ghost city story has come up recently that's worth a good look.

Please consider the Dateline SBS report on China's Ghost Cities by Adrian Brown

Vast new cities of apartments and shops are being built across China at a rate of ten a year, but they remain almost completely uninhabited ghost towns.

It’s all part of the government’s efforts to keep the economy booming, and there are many people who would love to move in, but it’s simply too expensive for most.

Video journalist Adrian Brown wanders through malls of vacant shops, and roads lined with empty apartment buildings… 64 million apartments are said to be empty across the country and one of the few shop owners says he once didn’t sell anything for four or five days.

Here is a Transcript of by Adrian Brown's report.

Here is a Slideshow of Ghost Cities.

However, the must see portion of his report is the Video of Ghost Cities.

Modern Equivalent of Building Pyramids

All this talk about how undervalued the Yuan is, how China will rule the world, and why the Yuan will be the next global reserve currency is pure silliness.

China's growth is nothing more than a credit bubble on steroids. Cities are vacant, yet China keeps building, and building and building.

The true state of affairs is China's banks are insolvent. China is building units for which there is little demand and few can afford. China will have to print money to pay for all of this malinvestment. The idea the Yuan is undervalued fails to take into consideration any of this.

Play the video and decide for yourself.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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