China and it's empty cities

If you've looked through the 'history of economics' thread in any form, then much of what is stated in this video will stick out like a sore thumb. China is building phantom cities. Nobody lives in these cities. I've also heard of shopping malls, etc... all being built by the gov't with nobody occupying them. Houses, as this video shows, built with nobody living in them which has unleashed a new type of concept of a house. Not to live in them but a way to invest ones money. People buy them, don't live in them, and simply use the house as an investment deal. Notice the video mentions GDP and the news report goes on to explain why countries, such as China, do these kinds of things. All to increase or maintain a high GDP because the country therefore appears to be economically vibrate. It's all very mercantilist in nature. Good short video.

thats insane..they have to spend the stimulus monies somewhere or they get massive inflation i guess..empty rooms..

Wilderness what at video !!
to bad is not squatters in China LOL
I was awe the other day looking at the incredible architectural in Chengdu
or http://www.chinese-architecture.com/xixi-leisure-centerdna.html
or at this store
http://www.e-architect.co.uk/china/hangzhou_store.htm
but also the sad photos too
http://www.chinahush.com/2009/10/21/amazing-pictures-pollution-in-china/
i guess Seek that is what the are doing with the cash "they" make with the ducky's LOL

checking in from Florence Italy. Having a great time so far. My back does not hurt anymore. great food and etc....Take care....

seeker401 wrote:thats insane..they have to spend the stimulus monies somewhere or they get massive inflation i guess..empty rooms..

I'm also thinking about how the money is still in circulation. now whoever built those houses have the money and they are spending it on something. it's a bubble, in other words, malinvestments because there is no consumer demand for these projects, ie. the cities, etc.... In some case, such as the houses, it is said the people value them as investments, but that will last as long as housing prices go up, meaning, as long as the bubble grows. Just like the housing bubble that popped around the world in various regions recently. But China is building bubble cities. What happens when a bubble city pops..lol... it's insane. Those projects need maintenance. They will need use. Maybe that's how the gov't plans on pulling people into those cities. Offer gov't stimulus, eventually, to repairmen to come into those cities and maintain them. Those repairmen need housing and food and so in come grocerymen, etc.... But all those people live in other locations, but China could make it more difficult to live in rural areas by increasing taxes there, etc, etc.... Social engineering for the nation-state at it's most colossal. I think it's all for appearance. What most people hear on the news is how China's economy is thriving. China therefore pulls in investors. China is also valued even though it is empty in real wealth with these empty cities, etc.... It's the same as the U.S. dollar. It's fiat. China has fiat cities. It's not worth anything except if people value it. It's advertising at it's fullest.

isabel wrote:Wilderness what at video !!
to bad is not squatters in China LOL
I was awe the other day looking at the incredible architectural in Chengdu
or http://www.chinese-architecture.com/xixi-leisure-centerdna.html
or at this store
http://www.e-architect.co.uk/china/hangzhou_store.htm
but also the sad photos too
http://www.chinahush.com/2009/10/21/amazing-pictures-pollution-in-china/
i guess Seek that is what the are doing with the cash "they" make with the ducky's LOL

keep in mind all those building projects of bridges in China, etc... that Ian had posted in other threads. Looks booming but maybe they are simply building lots of bridges to nowhere (Palin-Alaska).

i can talk for Ian post it but the one's that i post( is more on architectural record december issue) i think the will be build and for sure the store is from 2007.

wilderness wrote:

isabel wrote:Wilderness what at video !!
to bad is not squatters in China LOL
I was awe the other day looking at the incredible architectural in Chengdu
or http://www.chinese-architecture.com/xixi-leisure-centerdna.html
or at this store
http://www.e-architect.co.uk/china/hangzhou_store.htm
but also the sad photos too
http://www.chinahush.com/2009/10/21/amazing-pictures-pollution-in-china/
i guess Seek that is what the are doing with the cash "they" make with the ducky's LOL

keep in mind all those building projects of bridges in China, etc... that Ian had posted in other threads. Looks booming but maybe they are simply building lots of bridges to nowhere (Palin-Alaska).

bridges to nowhere..i hear ya

i am going to post this on the blog tomorrow

Hint: It is all about the cost of labor..
Special Report - China bets future on inland cities
http://asia.news.yahoo.com/rtrs/20100803/tap-oukwd-uk-china-urbanisation-03b3b4c.html

Over the past three decades, rural migrants flocked to big, prosperous cities along the coast. Now, in its revamped model of urbanisation, the government is trying to bring cities to its farmers, a project that could absorb more residents than the entire population of the United States in the coming decades.