What's a good way to increase your GDP (on paper)? Spend government money on infrastructure. What's the ultimate infrastructure project? A whole frikken CITY.
I heard on the radio earlier this year that Hugo Chavez was planning to make a city from scratch for the benefit of the poor people of Venezuela. News to me is that China has already MADE a city. Ordos. They built it for a million people, and nobody has moved in, five years later.
Agree or not (I do) that China is on top of a real estate bubble at least as bad as the one recently burst in the USA, but click through to Mish's Analysis of it scroll down to the YouTube video. It's pretty stunning. There are also some other good links about China's problems there as well.
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