China's Ghost Cities

[LMITOUT]

You wanna talk about a head scratcher...

[smnduck]

[PoorWordUsage]. All the story's of China propping up thier currency seems to make sense. If this is the case they seem to playing with fire and hoping not to get burned.

[drewevans]

that is unreal!!

[flipper]

That is nutz.

[pushbutton]

At various times throughout history China has has the opportunity to take over the predominant leadership role and failed. I am usually a contrarian and while it seems there is nothing to prevent it this time around we shall see.....i might not be around to see the results but crazy carp like this is par for the course.

[LMITOUT]

When I saw this I immediately thought that this is economic warfare.

Just think of all the commodities used to build these ghost cities, resulting in higher prices for the rest of the world including the United States.

What do you hear repeatedly about the price of metals, et al?

China, China, China.

This is prima facie that government projects don't work.

[pushbutton]

Could be that, could be their pencil pushers thought that the peasants would leave the countryside and flock to the cities and enslave themselves to "progress"( the lack of has been the cog in the past as well )...who knows...maybe a combo of both.....regardless they are stuck with the bills and will they get paid off from all the notes we "sold" them?

[cbrooks]

This is like some science fiction novel.

[Steve Foss]

That's an interesting segment, and a great way to start a thought-provoking thread!

I was a little put off by the musical accompaniment obviously calculated to set a mood and increase the dramatic feel, but that's the typical TV primetime news magazine philosophy nowadays. Part fact, part whatever it takes to build ratings.

The actual data and the "why" is thin in the piece. Lots of visual impact, not so much in-depth evaluation. Typical of closed and secret government. It'll take considerable and consistent reporting to really understand what's going on over there, and what justification the ultra powerful are using for their continued push.

But one thing is clear to me.

The people in power are making a LOT of money with so much building. The people without any power, and who can't afford the inflated housing prices, are looking on, bowing their heads, and getting on with trying to live their lives.

Same old, same old. Human nature is constant, regardless of the political system.

[Surface Tension]

This is like some science fiction novel.

Yeah, I got that Twilight Zone feeling.

[NETim]

Looks like "Hope and Change" at work to me.

[cbrooks]

I'm with Steve its more of the people with money influencing with the ,I'm not sure what you call it, all this senseless building and infrastructure in non populated areas. I couldn't imagine being the commoner in that piece who lives where they have communial bathrooms. Thank god I'm an American where I still have a voice. China will never be the super power with decision like these.

[Surface Tension]

Well of coarse the video left me wanting to know more.

The ghost city of China

The Chinese government has spent millions developing "the Chinese version of Dubai" outside the existing city of Ordos. One problem — nobody lives there

posted on October 22, 2010, at 12:45 PM

China's "ghost town" was built for 300,000 people, but houses only 28,000.

China's "ghost town" was built for 300,000 people, but houses only 28,000. Photo: YouTube SEE ALL 35 PHOTOS

A new city in inner Mongolia was supposed to be a "Chinese version of Dubai," reports The New York Times, and accommodate 300,000 people. But almost five years after the government began intensive construction, only 28,000 citizens (if that) have moved to Kangbashi New Area, 15 miles from the metropolis of Ordos — the buildings are empty, the boulevards are free of cars, and "weeds are beginning to sprout up in luxury villa developments that are devoid of residents." Yet building continues at China's usual frenetic pace. How did this happen and what does it mean for the future of China? (Watch an al Jazeera report about the empty town)

What's the backstory?

China's economy has been growing at a spectacular rate in recent years, and construction has been the main engine of that growth. "The Ordos county government built Kangbashi because frankly, it is rich enough to afford it," says Teoh Kok Lin at The Malaysia Star. The county (population 1.6 million people) is "home to one of China’s major coal mining and natural gas producers," so there's no shortage of wealth in the area.

Why are the Chinese still building?

Because they remain confident that the real-estate boom will continue long enough to populate Kangbashi. Despite appearances, the Times notes that housing sales in the city of Ordos proper reached $2.4 billion in 2009, up dramatically from $100 million in 2004. A local official sums up the unapologetic government stance: "This is a city of the future. We are going to build this into a center of politics, culture and technology. That is our dream." (A video promoting Kangbashi would seem to confirm that the government is pitching it as a reflection of Chinese ideals.)

Is this a sign that China's bubble is bursting?

Critics, including the state-run newspaper, argue that the empty town is proof that China's impossibly hot real-estate market can't possibly last. Investor Vitaliy Katsenelson, speaking to Forbes, calls such speculative development "the equivalent of building bridges to nowhere, but on a very large – Chinese – scale," and believes that at some point, "the piper will have to be paid." And the global consequences of a Chinese collapse could be dire, says Bill Powell at Time: "Since a huge real estate bust in the U.S. in 2008 was the catalyst for the still lingering global recession, many analysts fear a replay in China could prove disastrous."

Sources: The New York Times, Forbes, Time, Malaysia Star

[Surface Tension]

China's economy can grow all it wants.

Just my opinion, lack of freedoms and civil rights will continue to hold it back.

[Get'n Jiggy]

Another prime example of gubmint run amuck.

[cbrooks]

Lets say China's bubble does burst from all these emty cities being built. How does it affect the USA and its debt to China? (a)Doesn't change anything(b)Our economy gets worse...maybe lack of credit being china buys our debt© Like Limit mention earlier specular prices in metal, oil other things are no longer in high demand.

This is a good topic. Makes you think.

[Jarrod32]

From the article that Surface Tension posted:

[A local official sums up the unapologetic government stance: "This is a city of the future. We are going to build this into a center of politics, culture and technology. That is our dream."]

Ahhhh...but if that dream (of the government officials) is not the same as the dreams of the people, it will fail. This is the perpetual failure of government "one size fits all" planning.

[Surface Tension]

Along with a lack of freedom and civil rights, the average worker making around 75 cents an our might have something to do with it.