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Larry Lang, professor of Finance at Chinese University of Hong Kong, said in a lecture that the Chinese regime is on the brink of bankruptcy and that every province in China is Greece.
Firstly, China’s debt sits at US$5.68 trillion. This calculation is arrived at by adding up Chinese local government debt (between US$2.5 trillion and US$3 trillion), and the debt owed by state-owned enterprises.
Secondly, the official inflation rate of 6.2 percent is fabricated. The real inflation rate is 16 percent, according to Lang.
Thirdly, that there is serious excess capacity in the economy, and that private consumption is only 30 percent of economic activity. Lang said that beginning this July, the Purchasing Managers Index, a measure of the manufacturing industry, plunged to a new low of 50.7. This is an indication, in his view, that China’s economy is in recession.
### Fourthly, that China’s official GDP of 9 percent is also fabricated. According to Lang’s data, China’s GDP has decreased 10 percent. He said that the bloated figures come from the dramatic increase in infrastructure construction, including real estate development, railways, and highways each year (accounting for up to 70 percent of GDP in 2010).
((( those tens of empty cities in remote areas come to mind )))
Fifthly, that taxes are too high. Last year, the taxes on Chinese businesses (including direct and indirect taxes) were at 70 percent of earnings. The individual tax rate sits at 81.6 percent, Lang said.
Firstly, China’s debt sits at US$5.68 trillion. This calculation is arrived at by adding up Chinese local government debt (between US$2.5 trillion and US$3 trillion), and the debt owed by state-owned enterprises.
Secondly, the official inflation rate of 6.2 percent is fabricated. The real inflation rate is 16 percent, according to Lang.
Thirdly, that there is serious excess capacity in the economy, and that private consumption is only 30 percent of economic activity. Lang said that beginning this July, the Purchasing Managers Index, a measure of the manufacturing industry, plunged to a new low of 50.7. This is an indication, in his view, that China’s economy is in recession.
### Fourthly, that China’s official GDP of 9 percent is also fabricated. According to Lang’s data, China’s GDP has decreased 10 percent. He said that the bloated figures come from the dramatic increase in infrastructure construction, including real estate development, railways, and highways each year (accounting for up to 70 percent of GDP in 2010).
((( those tens of empty cities in remote areas come to mind )))
Fifthly, that taxes are too high. Last year, the taxes on Chinese businesses (including direct and indirect taxes) were at 70 percent of earnings. The individual tax rate sits at 81.6 percent, Lang said.
