The problem is the money's going into real estate so if you're a state-owned enterprise, and you produce steel or glass or any of the cement or any of the components for construction and you just wanna roll steel and build buildings…
I've been out there, I expect you have too, I've seen the ghost cities, I've seen them as far as the eye can see -- completely empty.
And people say, "Well, they'll fill up in the years ahead." No, they won't. I mean, that migration from the countryside to the cities is largely over, number one. Number two, it doesn't take into account obsolescence. You can't mothball a building; you have to occupy it and maintain it.
So, this is wasted investment. If you adjust the Chinese GDP for the amount that's wasted, it would already be lower...
- Source, James Rickards via FXStreet
