The "Chinese" Manhattan

Bloomberg reports: China Debts Dwarf Official Data With Too-Big-to-Finish Alarm.

A copy of Manhattan, complete with Rockefeller and Lincoln centers and what passes for the Hudson River, is under construction an hour’s train ride from Beijing. And like New York City in the 1970s, it may need a bailout.

Debt accumulated by companies financing local governments such as Tianjin, home to the New York lookalike project, is rising, a survey of Chinese-language bond prospectuses issued this year indicates. It also suggests the total owed by all such entities likely dwarfs the count by China’s national auditor and figures disclosed by banks.

Bloomberg News tallied the debt disclosed by all 231 local government financing companies that sold bonds, notes or commercial paper through Dec. 10 this year. The total amounted to 3.96 trillion yuan ($622 billion), mostly in bank loans, more than the current size of the European bailout fund.

The planned 15.2 million square meters (164 million square feet) of office space by 2020 in Yujiapu and across the Hai River in Xiangluo Wan, or Conch Bay, is more than one-third of the 450 million square feet in Manhattan.

One-third the size of Manhattan office space, and completely fuckin' empty! Completely!

Ponder that, fuckers, don't just sit there, ponder it.

How can this not end badly?

Anyone who is long the Chinese yuan in any form whatsover (and the EE is looking at you, Jim Rogers!) is going to get their fuckin' clock cleaned.

There is no China miracle. It's all the illusion of debt financing, and when it comes crashing down (no later than mid-2013 and most likely sooner), remember you heard it here a long time ago.

Ditto for India and Brazil. There is no "Indian miracle" or "Brazilian miracle". It's all the smoke 'n mirrors of a ton of debt.

PS :- It was obvious what drove commodities all along, wasn't it? Please maintain a moment of silence for both Canada and Australia. Ruthless ass-poundin's in technicolor await.