Everybody in the world is a witness to the amazing growth of Chinese economy in last decade. China has a large scale economy with an exceptional stable growth for more than 10 years, specially during the economic crisis of 2009.8% GDP growth caught the whole world's sight. However as a Chinese, I am not very proud of this growth because I know how the government created their GDP numbers and I can not expect it as consistent growth. The government has taken too much from their people, specially from the poor.
The beginning of the economic growth was from security market during 2005-2007. Like other developed countries China has an extremely bullish market and people invested their money in the security market pool hoping to make a huge profit. The fact is most of them do not know any risk of the share market. Before 2005, 95% of the money goes to the bank savings which seems to be the only investment way at that time.I was working in a bank at that time therefore i know even the bank staff was under estimated the risk by selling high risky fund to the poor people who use the money for their consumption. everybody was crazy about stock market until the middle of 2008 when the economic crisis start in china. millions of the poor people were told that they can not get their principles from the bank, the bank was an agent of selling fund. I was in charge for dealing with those people who complained to our bank. To be honest, a lot of people signed the contract by trusting of our bank and that is just their weakness, I could pay nothing remedy to them because they have sighed the contract by themselves, however I also knows that a significant amount of the contract was sighed by misleading or some degrees of cheating from our staffs. some of our clients can not pay the operation fees for their families, some of them were homeless because they can not afford the rent. I feel I was like a killer who kill all the hope from them even i didn't mean to do that.
until several people were suicide, government found it is not looks good, they start to pay principle to some of them.and try to stop this economy crisis by rising the real estate price. that could be another big mistake. Because the huge profit was too attractive to the local government.
China was in a economic crisis for sure, the reason why we can not see it is because it was covered by the real estate bubbles. Some people might ask how? the reason may sound weired to the westerner but Chinese government does use re-building to generate GDP. The owner ship of the land is not belongs to anybody but government, which means the government can throw the people out of their home at any time they want and re-build a new one with higher price. I m not kidding, they really ignore any human right and make millions people become homeless. some people died in the frighting for their families and others was arrested.
Now, a lot of people choose to rent house instead of buying a so called "real estate" because they are not sure if some time later their house will be rebuilt again. government can not rob money from real estate, then they think about inflation. I m not sure if they mean to do that, but according to the frequently reporting on different media, i m pretty sure the government knows what is happening right now and they doing nothing.
in the last quarter of 2010, most of the food price has been increased more than 50% however, the statistic department of china said the CPI was just rose 3.5%. what a joke!
i m wondering what will happen next? will the government paid for their wrong decisions later. and where the chinese economy will go?
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