The Coming China Crisis
Bert Dohmen, known as a contrarian, has been warning about the growing problems of China. Once again Bert Dohmen is in the very small minority, just as he was in March 2000 when he wrote that a market crash was ahead, (it was the exact top of the internet bubble), and in 2007 when he wrote the book PRELUDE TO MELTDOWN, predicting that in 2008 the markets would crash similar to 1929. Now Bert Dohmen’s THE COMING CHINA CRISIS book presents the case that China will produce a Tsunami throughout the global economies. China was the locomotive of the globe, the financing mechanism for the immense US debt, the source of incredible demand for commodities and oil, and the economic power of Asia. That is changing now. No bubble grows forever. The government’s construction programs have produced much of the GDP growth. Analysts quote the strong GDP growth, but that’s actually price increases because of faulty inflation adjustments. The consumer’s share of the economy has shrunk from 46% of GDP to 34% in spite of the government’s efforts to make the private sector grow. Even dictatorships are not all powerful. The private sector in China is succumbing to the economic downturns in Europe and the US. Empty buildings, empty cities, empty shopping centers cannot be built forever. Bert Dohmen, who predicted in 2007 that Dubai would be the largest real estate debacle in history, (which it is now), currently predicts that China’s real estate disaster will be many times greater. Inflation is surging, the government is fighting it with an incredible credit crunch, manufacturers can no longer get credit to produce goods, factories are being abandoned, financial fraud discoveries at publicly listed companies will soar, and street protest are growing in numbers and intensity. The China bubble has burst and everyone knows that a burst bubble cannot be re-inflated.