A Bloomberg article by William Pesek predicts the fall of the Chinese economy based on the fact that the country has embarked on a project to build the largest skyscraper in the world–as did the US, Japan, Malaysia and Japan before it.
The article is entitled; China is Set to Suffer the Skyscraper Curse and suggests that vanity projects are a sure sign that a country is about to suffer a major economic setback.
It now appears that all those who were predicting the exact date and time when the Chinese economy would overtake that of America, may have to undertake a substantial recalibration.
What I find amazing is that the alarm bells have not been ringing before now. When a country starts to build houses that nobody buys, roads and bridges that lead to nowhere and has local governments making a mountain of loans with few of the governance and management structures in place that one would normally expect, then one would think it was obvious that it would all end in tears.
Then again, as they say, the markets will continue to go up, until they go down.
Jonathan Ledwidge is the author of the book Clearing The Bull, The Financial Crisis And Why Banks Need A Human Transformation (iUniverse).