Comments by "Arthur Mosel" (@arthurmosel808) on "How Money Works" channel.

  1. The so called a PRC economic miracle has a,lw as been based on fraud. Empty and unused properties were evaluated at full value when applying for loans, and actual liquidity had to be only 10%. This pushed stock prices up and foreigner bought stock at artificially high levels. This plus the fact they took money for. Projects before they were begun and paid bonds and returns with the money needed to complete projects seems very Ponzi like to me. Like all Ponzi schemes they eventually fail when the outgoing exceeds the amount scammed into them. I forgot to add that check out the quality of the construction built. Too often substandard materials and workmanship.
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  2. There has never been a Chinese economic miracle. Most of these buildings are often completely empty, some of these are called "ghost cities". The PRC's stock market allowed Chinese companies were able to by stock with only 10% of the value, and allowed to use the value of their property (i.e. the ghost cities and empty buildings which didn't approved any income). Add to it the fact that PRC's government at all levels has as much debt as those in the US while having a lower actual GPA. They then encouraged foreign investors to place money into the stock market there which was artificially inflated. Stop the new money from over seasons and the props start to fall away. Now, everyone sees that the Red Dynasty is a fragile shell.
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  3. GNP NOT GPA.
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