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'Coming Collapse of China,' author Gordon Chang on why it's a bad idea for China to buy U.S. debt directly from the Treasury Department.
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Not all one point eight I'd -- Gordon Chang to talk more about China the author of the coming collapse of China he's with us here.
It studio and this big deal by the way do you think that the Chinese can now go straight to the treasury to five treasuries.
I think this is miss time -- you know with the Chinese economy with very severe problems.
They're going to be buying fewer and fewer treasuries going forward six months from now we're gonna be saying.
What were we thinking and the other thing of course is that China is the world's sparks cyber criminal and we're giving them direct access -- interest rates computers -- what's going.
Are you are well now you're getting a little bit you might that might be a little bit of a stretch but who knows we don't know until it actually happens but.
Do you think that the Chinese seriously ruled really cut back on the amount of because that's a big -- they did the united treasuries.
That they don't you think they're really gonna cut back on buying our debt I think they will -- -- cut -- as their exports decline the other thing though is that you know they're not going to be buying euros for some time and so what are they gonna do.
They're gonna be stuck with treasuries -- -- a little bit of gold I don't know but essentially they've got to go into really good paper they're stuck with us whether they like to they're like -- not -- that then but you think things -- a mess they -- which is a big deal here.
If China really -- slowing down as much.
As it is but job is it to mean that China haters -- -- your problem with the chairman of the board here.
I would have you believe that it's not going to be a hard landing is going to be -- crisis and you think things -- just gonna fall apart over there collapse of China well you look at April probably it was 0% growth.
My -- 00.
Where do you get that from by far the best indicator of Chinese economic activity is the production of electricity -- increased by only zero point 7% last month and because the growth electricity.
Always out -- the growth of the economy it couldn't have been growing more than zero.
We don't have as statistics for real shipments -- brand third best indicator is new renminbi lending.
Which was down eight point 2% total here and down 32 point 6% month on month economic growth some of goods and services the GDP growth in China.
May -- -- but surely it's not zero mean luggage calling in China would be under 7% or whatever might deepens the thoughts zero minutes -- But over the -- -- -- but if you look at the underlying official data it does point to zero growth some of -- even says contraction so what's gonna happen.
I think that they're going to have more and more problems going forward the first two weeks of may look very bad -- -- financial crisis of some sort is that what you're did -- -- something very dire.
Not a slowdown you're not talking about if you're all right it's not a slowdown the Chinese economy's not slowing Connell is collapsing right now.
-- -- -- -- And an -- what you're talking about is maybe 9% growth in last year but now you're talking flat line I always -- -- a hard time about the book but you're still gonna be right you think about the coming collapse we're still waiting for his collapse of China but you look at the economy it really is a problem and then -- you -- Ingrassia Communist Party basing its legitimacy on prosperity.
Big problems hard part in all seriousness is we don't know -- right we don't have enough information and not clarity Gordon thank you very much -- --
