China’s debt woes

In a detailed article at Huffpo, Janet Tavakoli argues that China has an economic problem too, that it is caused by fraud and mismanagement, and that China's bubble will be popping. She also offers a way to determine when China's bubble will be bursting:

If the rate of change of public officials fleeing the country, df/dt > x, where x is yet to be defined, or the acceleration in fleers, d2f/dt2 > y, where y has yet to be defined, or the rate of change of the average amount of loot dl/dt > z, where z is yet to be defined, then conditions of the Chanos Equilibrium have been violated and destabilization will occur. Stated differently, when you see the absolute amount of embezzled wealth fleeing the country suddenly increase, or when you see a sudden increase in the absolute number of Chinese officials leaving the country on "holiday," or when you see an acceleration in the number of officials leaving the country in a stealthier way, you'll know China is sinking.

Continue ReadingChina’s debt woes

Maher: Tell Bush what he wants to hear

The idea of Bill Maher's post is that we should just tell President Bush that his wildest fantasies are, indeed, coming true. Will Bush ever find out that we're lying to him?  Are you kidding?  He just told Australia's Prime Minister that we're "kicking ass" in Iraq.  That's the way it…

Continue ReadingMaher: Tell Bush what he wants to hear