Chinese hot money runs for cover .

[Ross]

Dontcha just love it when spin and BS are destroyed by evidence .
Forget the Chinese growth story because when people on the ground
start running for cover you know the fat lady is about to sing .

'Hot Money Flows' have left China at a rates exceeding that during the worst of the Lehman crisis;

Between March’09 and February of this year, such ‘unexplained’ flows
amounted to no less than $560 billion - roughly two-fifths of China’s total reserve
accumulation and a third of its coincident increase in M1.

Full article

[Ross]

Even more evidence if any were needed .



China’s Concrete Bubble

Linked below is an article on Chinese Heavy equipment manufacturers
fighting a sales slump with zero deposit financing and other perks.
The outcome is predictably a massive blowout in receivables ,
a slump in cash reserves and enormous bank borrowings .
Conclusion : This is not going to end well .

http://www.debtdeflation.com/blogs/

[Ross]

Jim Chanos makes the case that Chinese Govt Exposure to debt
is actually more like 200% of GDP .

Did you catch that ...

Chinese Govt exposure to debt could be 200% of GDP

He also argues that the Chinese property crash is happening now and
consequences will be visible this year 2012 . Even better he ever so
politely calls BS on Chinese GDP growth figures and suggests growth is
more likely zero or less because of loan failure rates .

[Ross]

The chart below is unfortunately a little out of date .
However when I look at current figures for Suez container traffic ( laden )
it appears to be roughly 15% to 17% down on this time
last year . In other words there is a fair chance that
Chinese exports have declined by a similar figure .






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