Thursday, December 3, 2009

China's Empty City of One Million

I trust everyone has seen the practically empty city in China, built on spec.

Here's a comment from a friend of creditbubblestocks:

The city mentioned as being 30 kilometers away from the empty, command-built Chinese city contains an enormous amount of capital in the form of its inhabitants mental maps, a their social network and the physical plant optimized to support that social network. All of this would be squandered in moving to the empty city.

This command-built aspect of China's economy suggests that quite a lot of its GDP is useless fluff, like a Donald Trump beauty pageant or casino.


eh said...

Yeah, I mean when you hear those GDP figures...they can be pretty much as high as you want, if you're willing to e.g. deficit spend. It's whether that spending results in useful and needed production capacity that matters later. And there I have my doubts about the US stimulus as well. The US is still in a world of hurt, IMO. But don't try shorting the market on that.

CP said...

Yes. You need to invest in positive ROI projects to succeed.