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Just thought America and Europe's financial and economic blows are witnessing a bigger picture specifically your real estate bubble in the most populous country in the world.
-- Axe its China.
But Conrad says don't lose focus on China and Japan where quietly dealing with some big problems of their own but -- to come with -- Casey research and author all.
This book profiting from the world's economic crises joining us now and -- -- -- them.
California but welcome back to the program.
As viewers of the -- program regularly know I've.
You know just whatever were one -- opinion I think it's a massive real estate bubble in China you would agrees -- this -- -- -- segment.
Why do you think there's a big real estate bubble going on China.
Well it's interesting to look at the comparative.
Growth and value of real estate.
And in my case I looked at three countries together.
That is Asia being represented by China and Japan is too important countries and our own.
To see how big the real estate bubble I've grown in China compared to ours and to Japan.
And it turns out that China's real estate bubble which is still bubbling.
Is now the level that Japan reached in 1990.
And has never recovered to and it looks to me that they are in a situation where a number of factors have come together.
Such that government increases in spending to support their very weak economy.
Along with -- us and Europe.
Combined with -- local government incentives -- -- find projects to -- combined with speculative fever of individuals buying.
Just hoping to flip them.
Does that sound like Miami or are -- Las Vegas.
Have created a bubble that looks to me quite vulnerable spot for them going forward.
But the -- its day but mistaken -- 'cause it's a Communist government.
That won't act in ways that even a Japanese government or US government did not or would not after the housing collapse.
Couldn't that bubble get even bigger and maybe last even longer than you think.
That's always the case day in when you're predicting bubbles Greenspan city couldn't even see them I think we can see this I want to.
Million apparently empty condominiums.
The price in Beijing.
All of -- -- rather minor amount of total land that is traded.
Has increased a factor of nine times.
This bubble got going around the beginning of the decade.
And those kind of levels of increase really are red flags the question is really win and of course what will be done about it.
My feeling is that they are going to experience something not unlike what Japan experience.
In terms of real estate not growing for a decade or so once it does very.
Why our viewers care.
Let's say you're right -- why do we care.
I think have to back up a little Brian -- my book is about debt and the problem with debt and too much of it.
Had been the focus.
From about 2006.
When I looked at the US housing real estate bubble predicted -- it's unfolded pretty much as I expected.
And then I spent quite a bit of this year looking at the sovereign debt crisis.
Could in Europe.
And I see a similar kind have bubbling of not only stock markets but also real estate.
As affecting overall world economies.
And government's response to these is almost always to -- more.
I had thought that Asia would be the great wave of the future and the place to invest when I looked at all our own problems and European problems.
But now as I look at them icy feet of clay in Japan as well as in China.
Yeah but we had a lot of time to get in Japan -- will welcome you back on soon we'll talk more about Japan which has another issue the big demographic problem there.
And what Japan's -- -- -- we welcome you back soon maybe couple weeks it's back on.
I agree and my recommendation honorable -- -- the physical assets of oil agriculture and gold to protect yourself against government.
When printing -- paper money very good and you're locked in other ways you can't back out now too late but comrade Casey research and office.
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