China is has been experiencing an unprecedented property boom, with people buying multiple bare concrete apartments all over the country, with little hope to actually rent them out in the near future. This is leading to a boom cycle with a very obvious end. What happens to the world economy when this starts falling over? Given China's current capital outflows, will this suddenly dry up? Will it increase? What will happen to overheated housing markets all over the world which is currently being propped up by Chinese investment?
Something closer to home for me, and something that is perhaps overlooked in all this, is the impact on Australia. Much of Australia's economy is driven by mining for building and construction. While this has taken a big hit in recent years, there is a perception of stability and even some optimism creeping back in. If China's property boom turns to bust, Australia is going to be one of the worst hit.
Crosspost from /r/bestof: https://www.reddit.com/r/bestof/comments/811li4/user_explains_how_chinas_economy_is_set_up_for_a/
From this comment: https://www.reddit.com/r/news/comments/80xs1v/china_bans_george_orwells_animal_farm_as_xi/duzfoko/
Discussing this article: https://www.forbes.com/sites/sarahsu/2018/02/26/chinas-household-debt-a-growing-concern-amid-rising-home-prices/#538a2642180d
Bonus: Ray Dalio, someone who predicted and profited off the '08 collapse talking about the situation in China today: https://www.bloomberg.com/news/videos/2018-02-27/dalio-excited-by-opening-up-of-china-capital-markets-video
Submitted March 01, 2018 at 04:08AM by Gareth321 http://ift.tt/2FHCi6a
