Mike Davis the 65 year old American Creative writer, social commentator and political activist has published an article on Toms Dispatch questioning if China now props up the world, the question is: For how much longer? Davis states, ”Officially, the People’s Republic of China is in the midst of an epochal transition from an export-based to a consumer-based economy. …Unfortunately for the Chinese, and possibly the world, that country’s planned consumer boom is quickly morphing into a dangerous real-estate bubble. …now every city with more than one million inhabitants (at least 160 at last count) aspires to brand itself with a Rem Koolhaas skyscraper or a destination mega-mall.  The result has been an orgy of over-construction. …In effect, a shadow banking system has arisen with big banks moving loans off their balance sheets into phony trust companies and thus evading official caps on total lending. …If China has a hard landing, it will also break the bones of leading suppliers like Brazil, Indonesia, and Australia.  Japan, already mired in recession after triple mega-disasters, is acutely sensitive to further shocks from its principal markets.  And the Arab Spring may turn to winter if new governments cannot grow employment or contain the inflation of food prices.”

 

Inspired by Toms Dispatch ow.ly/b7tb0 image source michaelmoore.com ow.ly/b7tOg