The China credit and property bubble debate heats up with ‘Australia: Boom to Bust’ author Lindsay David claiming that China ‘may’ end up having more residential dwellings than people by as early as 2019.
AUSTRALIA/ ‘It is clear that if China continues to construct new residential dwellings at such a rapid pace; there will eventually be more apartments in China than people’ claims the author.
The book titled ‘Australia: Boom to Bust‘ paints a scary macroeconomic picture on the potential economic fall-out for Australia if the Chinese credit and property bubble bursts.
‘As an Australian I am truly concerned that Australia will bear the full economic brunt of a bad economic bet made by our federal politicians, reserve bankers and miners.’
Mr David believes that back in 2008; in an act of incredibly good faith, the Chinese government launched a gigantic stimulus package, which provided the global economy a much-needed lifeline. However, today, China is now in a situation where its economy and trade partners such as Australia, Brazil and other resource-rich countries have become too dependent on China’s residential construction sector. ‘When the China property bubble bursts, the spot price of iron ore will most probably return to its historic long-term level of somewhere between $13-$20 per metric tonne. Today there is no mining company that can sell iron ore at this price without going out of business.’
Mr David is a co-founder of clean technology company GreenRigCo. The former strategy consultant holds an MBA from IMD. ‘Australia: Boom to Bust’ is now available on paperback and e-book format on amazon.com.
SOURCE: Lindsay David