Friday, June 17, 2011

Too much, Too Fast, Too Soon? Commentary on China's Economy


Too much, Too Fast, Too Soon?

There is a massive gap between the super wealthy and the poor. Shanghai is very much a 2 speed economy . You have your Maserati, Porche, BMW dealers all lined up in brand spanking new office buildings. And then you turn the corner and there is a guy on a rusty bike hauling bales of hay and bamboo down the street wearing peasant clothes. In a June 13, WSJ article, "In China, Women begin Splurging" apparently 30% of the 400 Maserati's sold last year were to women who were self made billionaires!

I don't believe anything this government says to the world including what it tells its own people. What harmonious society? In a recent copy of the China Daily and the there have been bombings and riots in about 5 different locations around the entire country in the past month. The subways all have metal detectors in them.

Now while it sounds horribly pessimistic, there is a lot of "sweeping the dust under the rug" but the problem is that its not simply "dust"  - they sweeping massive amounts of social problems along with it. And eventually its going to heat up and blow up.

In general try to avoid shanghai in June - august. It is extremely hot and humid. It is also rainy season.

Comment from my friend Alex - " In China, its almost like complete obliteration of self in this city. In the serbia/ eastern europe - they hate each other but they're not out to erase all of their history their past their culture, like this complete razing to the ground of the old buildings in many parts of shanghai."

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