China’s Economic Failures Threaten the World: Is China’s Economy Real?

The Chinese government is learning the hard lesson that comes from attempting to cheat the laws of supply and demand thanks to the near collapse of the Shanghai stock market. Where Americans learned from the Subprime Mortgage Meltdown that artificial demand created by cheap and easy credit will push the price of goods beyond affordability, the Chinese are learning government policy dictating artificial demand through overproduction, i.e. oversupply, creates an economic bubble that is destined to burst.

Although the world has been focused on the drama of the Greece Debit Crisis, the Chinese economy has seen trillions of dollars evaporate over a few short months. Unlike tiny Greece, China is the world’s second largest economy and that raises concerns of a global recession on the horizon. Unfortunately, Beijing’s attempts to keep Chinese workers on the job has already resulted in the oversupply of Chinese goods that will ultimately lead to the freeze of production in China and drive down the prices of these goods.

Read more at http://www.washingtonoutsider.org/editors-blog/chinas-economic-failures-threaten-the-world-is-chinas-economy-real#Dc8MHOFD6jpFfDwp.99

�B�\ϗ��