China's Economic Implosion Accelerates
Written By: Bob Adelmann | Posted: Monday, January 9th, 2012
On Monday, Gordon Chang, the author of The Coming Collapse of China and regular contributor at Forbes.com, was interviewed on Yahoo's Daily Ticker, where he observed, "If you look at all of [China's] indicators, they all point down."
Among those indicators were electricity consumption (flat), car sales (flat), property prices (collapsing), and industrial orders (down). And there is more to come, much more. The Chinese communist government is slowing the rate of growth of the money supply in order to "fight inflation," the natural result of nearly 30 years of expanding that money supply in order to catapult the Chinese agrarian economy into the 21st century. And such slowing is having the same expected effect: As the economy slows down, bankruptcies increase, tax revenues decrease, and the economy slows down further.
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