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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Tuesday, October 09, 2012

The Three Toughest Questions For China Bulls | ZeroHedge

"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works."

-John Stuart Mill-
China is facing unprecedented problems as decades of central planning misappropriated investment into government favored areas. This is similar to what happened in the USA where government policy promoting home-ownership created over investment in this consumer durable and ultimately led to an economic disaster. The falling prices were not the actual problem, falling prices was just the process in recognizing that previous mal-investment.

China too will ultimately face the costs of misappropriating investments and this will create a serious financial calamity.

The Three Toughest Questions For China Bulls | ZeroHedge


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