Saturday, January 22, 2011

Lang: China's "bubble" or throws a world crisis

"China's asset bubbles if blasting, will result in the 2010 World economic crisis. "In yesterday's world economies in transition in China enterprise development opportunities and challenges and the second annual meeting of the Soviet Union's development, has been a remarkable" language "of the famous economist lang, several reference World Bank President Zoellick speech, expressed over the coming year 2010.

Lang, into 2010, China began to encounter a new crisis, do not forget that should be more careful.

"At present, around the world including the Americas, Asia, Europe on the appreciation of the Renminbi requirements under increasing pressure, here I am very worried!" He said that if the continuing appreciation of the Renminbi, the economic effects will be increased. Secondly, since 12 September "tire-Rams at" China fails, the United States began a series of trade sanctions, has now spread to Europe, Asia, South America, China's export-oriented urban economy is a very great impact.

In addition, the recent water, electricity, oil and iron ore and other prices, but also to the Chinese economy has brought a great cost pressure. He said that after the financial crisis, international environment on the Chinese economy increasingly unfriendly, growing pressure on the exchange rate at the same time, trade sanctions, trade barriers have also become more and more serious, it's all in the enterprise in China reminded 2010 extreme caution.

As for the people that are always hot rates, lang is expressed great concern. He quoted on November 26, World Bank President Zoellick to China's "warning" indicates that China's asset bubbles is causing concern in the first half of the world, a large number of credit funds inflow is the asset bubbles in a first step, then continues to worsen.

"What worries me most is what are the prices soared, and is not a rigid requirements. "Lang through Beijing, Shanghai, Guangzhou, Shenzhen and four data study concluded that over the past few months, representing the current mainstream purchasing power in the high-end and office building-up of falling rents, means that the rigid demand decreased; in this case the price of silver is funding push-type, intrinsic reason is for entrepreneurs, investment, environmental deterioration, overcapacity, and purchased from the real economy, a large number of real estate career to evade inflation hedge funds into the market, which will house prices with high, produce a large volume of foam, if the Government does not timely processing, would have serious consequences.

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