“India Shining”? Or the Greece of Asia?

[KRAIT]

People seem to be purposefully ignoring the facts that most economists have commented on the negative side but have pretty much all said this is a short term issue and the long term future of the Indian economy still looks very bright.

I would say bright...not "Very" bright.

 

[Hafizzz]

China’s Manufacturing to Collapse by 2015, Says Economist



Chinese workers test the circuit boards at a factory in Mianyang, southwest China's Sichuan province on April 30, 2012 (STR/AFP/Getty Images)
A Hong Kong economist accustomed to making shocking pronouncements has predicted that China’s manufacturing industry will “completely collapse” by 2015 and that the economy will soon follow it.*
Larry Lang made his latest remarks at a lecture in Kunming City, in Southwest China’s Yunnan Province on May 19.
“China’s economy is facing two distinct phenomena that are exactly opposite to each other. The real estate and stock market has cooled down. However, the market for luxury goods, such as high end vehicles and collectors’ items, has heated up,” he said, according to Shanghai Securities News.*
He added that China’s economy is “sick,” and this sickness is the crisis the manufacturing sector is facing.
China’s manufacturing sector is “suffering from two illnesses,” he said, i.e., worsening of investment and management environment and excessive production capacity; consequently money originally meant for investing in the real economy has been diverted to luxury cars and goods.
The three main segments of the manufacturing sector—R&D, logistics channels, and key component parts—are controlled by European and American companies. China, therefore, has lost control of product pricing, which, inevitably, has created crises, Lang said in the lecture.



According to Lang’s analysis, the investment and management environments for manufacturing industries in China continue to deteriorate, causing excessive production capacity.
Heavy taxation and fees, as well as a broken capital chain have lowered the margins of manufacturing industries and exacerbated the investment and management environment as a whole.
Lang said China is actually facing four imminent crises: wasting of resources, excessive production capacity, debt crisis, and inadequate consumption. The crisis of wasting of resource and excessive production will explode first, he predicted.
“So many industries with overcapacity inevitably would lead to a long-term depression in China’s economy,” he said.
The excessive production in various industries adds up to “21 percent in steel, 12 percent in automobile, 28 percent in cement, 60 percent in stainless steel, 60 percent in pesticides, 95 percent in photovoltaic, and 93 percent in glass,” Lang said, quoting a report by eastday.com.
The banking sector is also straining under the weight of heavy debts, and 50 industries, led by the real estate industry, are also threatened by crisis due to tightening measures, Lang said.*
He mentioned that in the near future, local government debt in China will be listed alongside U.S. debt and European debt as part of the three major crises in the world. “This is horrifying. All Chinese people will pay a painful price for it,” he said.
He blogged*on May 7 that China’s economy is on the brink of greatest danger, and that “it is definitely not an alarmist talk.”*
“I want to tell those Chinese people and officials, who are only concerned about saving face rather than resolving internal issues, how dangerous and terrible today’s economy is.”
Lang also wrote that having crises is not frightening, “what is horrible is that we turn a blind eye to crisis and try to cover it up. What is even more frightening is to adopt a stopgap approach and therefore create an even bigger crisis.”

“China’s economic problem today cannot be resolved by the current economic system and means, we should look for other ways,” he added.
In October last year, Lang said the regime was on the brink of bankruptcy. One reason, he noted, is that the regime’s officially published GDP of 9 percent is fabricated. According to Lang’s data, China’s GDP has decreased 10 percent.*

There were many predictions in the past on China's collapse but they all turned out to be nothing but snake oil.

Anti-China trolls keep coming up with more and more "prediction" on China's collapse hoping one day their prediction will hit the Jackpot and then they will claim "I told you so" !!! LOL

 

[Imran Khan]

Pakistanis growing at -10% (historically fudged numbers) talking about collapse of Indian economy that still grew at over 6% in 2011-2012

-10 kya hota hai tu bhi hafiz ban raha hai yaar

 

[Chinese-Dragon]

Thanks for proving my point JayAtl. .

And an "Epoch Times" article as well. That is the cream on the cake.

 

[laman12345]

India debt ratio is more worse than Spain, Will India Collapse?

1 China Huge trade surplus
1. India Huge trade deficit

2. China low inflation
2. India high inflation

3. China Low Debt
3. India High Debt

4. China low unemployment (too many jobs, not enough labour hehe)
4. India high unemployment

5. China $ rises to historically HIGH
5. India $ drops to historically LOW

India debt ratio is more worse than Spain! Fix it quickly or your country will collapse faster than Spain

 

[Zeeshan360]

Spain's growth is static or in negative ..

Our's is still more than 6%

 

[airmarshal]

'Greece of Asia' is too big to swallow. Greece was an economy of lethargy. They had it easy in loans and euro economy. India or Indians are enterprising, hard working people. No matter how bad India does, it will still be better than Greece.

 

[laman12345]

Spain's growth is static or in negative ..

Our's is still more than 6%

your real GDP growth is -17%, because Rupee drops almost 20% this year. Wake up

 

[Great Sachin]

India is short term mess and dirty situation..all the flies and cockroaches are here to enjoy mess.....Once India will come out from this situation all insects will be vanish....

 

[Chinese-Dragon]

your real GDP growth is -17%, because Rupee drops almost 20% this year. Wake up

Buddy, I think you mean nominal GDP growth?

 

[kawaraj]

this ignorance of facts is the common feature of Indians today. not only guys here, but their officials, all result in such a bad condition of their once "shining" story.

I only spot a few sane words from news comments, which are mostly unheard voices.

Brahmin (India Inc)
4 hrs ago (01:46 PM)
5 to 6% growth and 10 to 12% inflation. This congress government has truly taken the people of India for a ride. Not to mention 2% uncontrolled population growth every year which brings down this 5% growth to even lower value per person. We are doomed to live and die in poverty in this nation. Quit India

 

[JayAtl]

Thanks for proving my point JayAtl. .

And an "Epoch Times" article as well. That is the cream on the cake.

They predicted real estate crisis last year and it happend. They predicted lots of fudged numbers and we see that as it coming true. Sorry your source of brainwashing , ala state run media is not credible for me to grab any news.

 

[kawaraj]

bhargava (mumbai)
4 hrs ago (01:28 PM)
In past in my comments I mentioned and still of same view that UPA policies are takin g country to point where we will be poorest nation of the world . Reasons:-
1) too muuch money is being given in subsidy to poor free without linking to growth resulting in increse in consumption and other items. Like food inflation is direct result of this. Nothing wrong in this except that un less country grows this will result in inflation and poor will be hurt more in long term.
2) Rate increase of banks has curtailed growth again this will result in unemployment, rupee fall ,less FII investment etc.
3) RBI is helpless and due to inflation they can only increase in rates which will again GDP to fall
4) So called land acquisition law , mining bill is good for votes . Again this will result in less indusrtry formations and import of coal and other minrals etc.
5) The moment any body proposes to indudtry put up protests start from so called GREEN brigade, human rights, enviorement ministry, political leders like WB case etc etc.
A poor country can take welfare steps in limited way but must take steps for growth and population growth must be stopped.
now we are distributing only poverty. GDP will continue to decline

this is another

 

[JayAtl]

this is another

Ain't it marvelous that they are discussing economics vs. how to come home in one piece tonight

 

[shuttler]

Spain's growth is static or in negative ..

Our's is still more than 6%

you are already outdated as soon as you wrote 6%!

6% is the deficit to your gdp!