Oh, Those Fighting Flyweight Economists

In the latest editions of two of the Chattering Classes' favorite weekly readers:

OMG, OMG, China's sky is falling.. .

Forbes magazine tells us that China's economy is in bubble status. The article is full of examples of truly f#&*ed up mega deals between local governments and state owned industries. Certainly this kind of shenanigans, on top of whack-a-doodle crazy rising real estate prices does smell foul. Boys and Girls, can you say "Peoples Glorious Fanny Mae"? "Tibet your life" I can.

Can a productive real economy survive a royally messed up financial economy? That is the question. Looking at Japan's collapse in the 1980s, the answer appears to be a resounding "noooooooh!".

OMG, OMG, China is at the start of an economic 1,000 year Reich. . .

The Economist Magazine (BTW,who can resist a magazine with such a spicy title?) tells us not to worry. They follow the rather long winded argument that since China is not exactly identical to japan in the 1980's, everything should be just fine. Have some warm milk and go to bed. These Economist writers go on about China like a teenage boy in the throws of his first crush.

My prediction. . .

No matter what happens in China over the next few years, it will be a pain in the ass for us Americans. At least until we figure out that hegemony is not our shared birthright.

That's my story and I'm sticking to it.