PBS 60 Minutes on China’s Housing Bubble and Ghost Cities

In a fascinating 11 minute segment, 60 Minutes looks into the housing bubble and the ghost cities in China. This is what happens when a central bank distorts interest rates by pumping freshly printed money into an economy, coupled with huge government spending projects to build infrastructure. Maybe they’ve built these cities to house South Africans being chased out of the country by the socialist ANC. Or Americans, Frenchies and Londoners leaving their countries to escape high taxes. Either way, if the Chinese can’t find real demand to validate these investments (i.e. to fill the shopping malls and apartments with people), the economy will experience a massive economic crash. But we know that won’t happen quickly, so the crash is a certainty.