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Surreal: Get a Closer Look at China’s ‘Largest Ghost City’

Mar. 4, 2013 11:36am Becket Adams

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Some analysts say they’ll soon be “thriving metropolises,” while others say these experiments in central planning will lead to a massive housing crash.

But most everyone agrees on one thing: China’s infamous ghost cities are both mysterious and dreary.

“China has been trying to get a grip on its property market for some times now and some say officials are in control and have been deflating the housing bubble,” Business Insider notes. “However, the risks of the housing bubble evolving into a financial crisis appear to be high.”

So what’s the problem? Why are these cities abandoned?

Well, as noted elsewhere on TheBlaze, the problem is simple: The average Chinese citizen can’t afford to live in these areas. Really, it’s that simple.

Indeed, according to Also Sprach Analyst and author Christopher Pavese, the problem in China can be summed up in three words: Misallocation of capital.

“The Union of Soviet Socialist Republics (USSR) was a single-party state ruled by the Communist Party,” Pavese writes, explaining the similarities between China and the old Soviet Union.

“The state was structured under a highly-centralized government and a command economy, meaning both capital and resources could be mobilized quickly and proficiently,” he adds.

However, speed and agility don’t always translate into efficiency. It could mean hastily pumping massive amounts of capital into investments with short-term gain but long-term consequences. It could mean a housing boom followed by a debilitating crash.

Here’s some fascinating footage of Zhengzhou, named China’s largest ghost city in 2010 by The Daily Mail, from a recent “60 Minutes” report on China’s housing bubble:

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As Vanke CEO Wang Shi told “60 Minutes,” many of Zhengzhou’s developers are in debt.

“Many have abandoned projects midway through because the money dried up. He warned that if the bubble really did burst, China could see its version of the Arab Spring,” Business Insider notes.

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Watch via CBS News:

Also, it’s worth noting that China just enacted new measures to try to control its “white-hot housing market,” as the Associated Press puts it, adding that the country “announced taxes on housing profits that will weigh on overall housing prices.”

–

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Featured image screen grab. This post has been updated.

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Comments (153)

Jobeycool
Posted on March 4, 2013 at 1:31pm
The insanity continues to grow worse and worse.

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- Wolfgang the Gray
  Posted on March 4, 2013 at 8:26pm
  You got that right. I bet China’s leaders are giving the same excuse as Obama is, “We don’t have a spending problem. We have a revenue problem.”
  
  Also remember that China is getting very friendly with Iran. The clouds over the planet are growing dark & hope around the world is growing thin.
  
  Report this comment
BORNINTOAWORLDATWAR
Posted on March 4, 2013 at 1:28pm
Mary Mary

Stupid should hurt

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Fubared
Posted on March 4, 2013 at 1:27pm
The time stamp was 12:14, so it could be 5 o’clock BarryMeth style.

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Mike Benton
Posted on March 4, 2013 at 1:19pm
Are there any jobs Chinamen won’t do? Maybe we could fly in a few “immigrants”.

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VRW Conspirator
Posted on March 4, 2013 at 1:14pm
too bad you are too stupid to understand…
what he was talking about is the way they don’t interfere in the Middle East…they don’t care what happens…they just sell their stuff and buy up mineral rights….they don’t give foreign aid to anybody.. they are more concerned with themselves and the countries on their immediate borders than they are about dictators mouthing off in third world countries…

they use proxi-wars against us…like we did in the 1980′s and Cold War against them….now we are stupid and trying to be World Police and paying off the criminals we should be shooting in the heads…and look what it got us….

aid should only go to TRULY allies and then ONLY if they ask for it… Israel is a true allie but has said they really don’t want or need the aid and would rather just know that we solidly got their back

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The_Cabrito_Goat
Posted on March 4, 2013 at 1:12pm
You remind me of a media matters person, one who leans expectantly in their seat with a pen and notepad in hand, looking 360 degrees at every word breathed by a conservative figure. It’s unsettling how deep your obsession goes.

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SpankDaMonkey
Posted on March 4, 2013 at 1:08pm
.
If it’s really a Ghost City, should we send in the Ghost Hunters to to make contact?…..

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Stoic one
Posted on March 4, 2013 at 12:56pm
Please provide some links to back up your claims. I will give you the benefit of the doubt.

The links …please.

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Al J Zira
Posted on March 4, 2013 at 12:56pm
He warned that if the bubble really did burst, China could see its version of the Arab Spring,” Business Insider notes.

One can hope!

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welovetheUSA
Posted on March 4, 2013 at 12:50pm
Silly……..

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MDECKER
Posted on March 4, 2013 at 12:49pm
Who do you think is paying for this?

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- civilwarcometh
  Posted on March 4, 2013 at 1:36pm
  All the major governments around the world are. I think this will be where the elites go when global chaos erupts. The new NWO headquarters. Agenda 21 is in their sites….
  
  Report this comment
- NHwinter
  Posted on March 4, 2013 at 2:45pm
  civilwarcometh – Thats exactly what I thought. It has to be connected to UN Agenda 21.
  
  Report this comment
- THEHIGHWAYMAN
  Posted on March 4, 2013 at 5:16pm
  My God, who do you THINK is paying for it????
  WE ARE!!!!
  There’s not one d—n thing you can buy in this country that is not made there..
  Even “American” products are made there..
  
  Report this comment
Pat Alexander
Posted on March 4, 2013 at 12:42pm
They killed all of the people that would have occupied these places through abortion.

It’s really that simple.

In our country, we killed millions of future taxpayers since the 70′s. Now we have money problems.

Just another example of unintended consequences, that always takes place when a central government runs everything.

Right now Obamacare is creating a nation of 28 hour a week part time employees.

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- JRook
  Posted on March 4, 2013 at 1:26pm
  Nice try but it is a tad simpler than that. “The average Chinese citizen can’t afford to live in these areas” When you have the average worker in China making $3.25 an hour, they really can”t afford much at all. Our one way free market trade agreements have done much to make the wealthy, wealthier. But at the cost of middle class incomes in the US and a living wage in China. It’s not their central planning that is the primary driver of this imbalance, it is perverted capitalism which drives companies and their wealthy investors to maximize profits in the short term, with know consideration or concern for the longer term health of the economy, let alone the workers.
  
  Report this comment
- hypnos
  Posted on March 4, 2013 at 3:13pm
  @jrook,that’s right state capitalism doesn’t work for long so why is Obama trying to emulate it. Progressives have a different agenda hidding behind false capitalism.So it’s back to the basics we need to lead with a true small government and true capitalism.
  
  Report this comment
- LESNC
  Posted on March 4, 2013 at 4:10pm
  Also millions of people were actually killed by Mao after the Communist take over.
  
  Report this comment
- girlnurse
  Posted on March 5, 2013 at 4:28am
  @JROOK..I think you are overestimating their average salaries over there. These are the “lucky ones” that get to work in these factories:
  http://economix.blogs.nytimes.com/2012/02/24/the-ieconomy-how-much-do-foxconn-workers-make/
  I think most rural Chinese probably live on $2.00 a day and then you have that lady (if you saw the 60 minutes episode last Sunday) she is a BILLIONARE and she said; “China has more self made millionares that any other country”. Man how screwed up is that!? All these BILLIONARES and people starving and making $2.00 a day!!!! Looks like the rich are gettin richer and the POOR are getting poorer! HERE in this country too!
  
  Report this comment
- moreoilplease
  Posted on March 5, 2013 at 6:58am
  No Jrook
  The imbalance is not due to profit maximizing or perverted capitalism. Trying to fit real world issues like this into your anti capitalist world view will lead you to false conclusions.
  
  “Our one way free market trade agreements have done much to make the wealthy, wealthier”. We don’t have a one way trade agreement. China manipulates by suppressing wages and their currency. And lots of people have gotten wealthy and wealthier in the process. China’s slave wages are the problem. Again, looking at this from the marxist point of view will lead you astray.
  
  ” But at the cost of middle class incomes in the US and a living wage in China”. You have it backwards. Investment in China does not cause low wages there or here. Low wage causes investment there, hence central manipulation.
  
  So, in China, central planning is the chief cause of wage suppression and the wage there promotes investment in China.
  
  And the middle class here are not effected by “international” companies seeking profits in China.
  The idea that for one party to gain another must suffer is utter non sense.
  
  “Most economic fallacies derive from the tendency to assume that there is a fixed pie, that one party can gain only at the expense of another”.
  Milton Friedman
  
  Report this comment
understanding-the-times
Posted on March 4, 2013 at 12:35pm
This culture is not stupid and they think in terms of decades and centuries, not the immediate future. They are buying gold like crazy and hold the second largest real estate portfolio in the world. They know our mistakes better than we do. They know what is coming and they know exactly what they are going to do about it. Why kill people or force internment when you can seduce them with comfort and the path of least resistance? They will eventually invite us over and our spineless citizens will chase a greener pasture in the name of world peace and a globally integrated society. Then they will simply take advantage of our shallow consumeristic mindset for their own benefit.

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- joex51
  Posted on March 4, 2013 at 1:06pm
  If any US citizen that want to go there let them go!! they are more than likely a HUGE left leaning liberal any ways and if they go there it keeps them away so we can turn the U.S.A. back into what the founders envisioned
  
  Report this comment
- Rowgue
  Posted on March 4, 2013 at 1:27pm
  Yeah they’re geniuses. All those empty cities are going to really start paying off in another decade or so.
  
  Lol you’re an idiot. Their entire economy is a fraud and a farce. It’s propped up entirely by never ending government directed construction of structures nobody is ever going to use. And that’s already starting to collapse and bring the rest of the economy with it. China is heading at mach speed towards a financial disaster that will make them dream of being in Greece’s position.
  
  Report this comment
- NoSleeper
  Posted on March 5, 2013 at 5:05am
  As are we, @ROWGUE, as are we.
  
  Report this comment
DZ-015
Posted on March 4, 2013 at 12:33pm
These cities may be haunted by the spirits of the millions of Chinese citizens murdered in the earlier years of the People’s Republic.

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ASE
Posted on March 4, 2013 at 12:32pm
When the U.S. is unable to pay back china all the debt they own, bobo will pay them back in people to live/work in those cities. He has his DHS tanks, and all the ammo he will ever need so how will you stop it? He will claim it is for the good of the nation, and that those being sent are ‘patriotic’ and ‘will be honored’ for their willingness to sacrifice for the ‘collective benefit’ of the ‘people’.

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- RedDawn2012
  Posted on March 5, 2013 at 5:06am
  Wow! This is so crazy it might be right! The “Sovereign Citizen” movement in the USA claims that the US is a “corporation” and that it’s citizens are “capital” of that corporation. If they’re correct then your scenario could easily be possible. What a wonderful web this NWO is weaving for us!
  
  Report this comment
lincolnhenry1860
Posted on March 4, 2013 at 12:31pm
China is a joke. The only reason they do that silly stuff is to keep people busy and falsely prop up their economy. It will crash as all the others as well.

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MrKnowItAll
Posted on March 4, 2013 at 12:31pm
The Result of BIG Government.

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shorelineliz
Posted on March 4, 2013 at 12:30pm
Geez. I thought our government wasted money on useless crap! This takes the cake!

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- deb7505
  Posted on March 4, 2013 at 4:36pm
  shovel ready!!
  
  Report this comment
Blitz
Posted on March 4, 2013 at 12:20pm
Looks like Detroit except clean.

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- THX-1138
  Posted on March 4, 2013 at 2:38pm
  And safe.
  
  Report this comment
- GBTVFan_Non_American_Overseas
  Posted on March 4, 2013 at 3:36pm
  And new
  
  Report this comment
JohnQTaxpayer
Posted on March 4, 2013 at 12:08pm
I saw the entire segment on 60 mins

When that bubble breaks will the Chinese call in our debt?

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- Cavallo
  Posted on March 4, 2013 at 12:32pm
  Probably before then. Likely in an attempt to catalyst our collapse before an invasion of Taiwan.
  
  Report this comment
- VRW Conspirator
  Posted on March 4, 2013 at 12:40pm
  let them…they only own about $1 T of the $17 T….1/17 is only about 6% of our debt….
  
  what will they seriously do? we sold them 10 and 30 year bonds….if they cash them in early…they take a lose….
  
  you can not “call in” a bond early without a penalty…and China has already started to sell off some of their short term bonds on the open market to third party investors….why? because they need the money now before they implode….
  so if they do call in the debt…we take the hit and pay them off with natural resources or by nationalizing the FED and calling in the nearly $ 4 T in loans they gave out to NON USA banks and governments. in fact, why wait…we should do that now and then audit the books and get rid of the FED entirely….
  just think what that would do… all the Paulies would be cheering…all the banks would be crying (so OWS would be happy too)… oh yeah…and we would send most of Europe into a depression, ourselves as well… but that $ 4 T in assets would cut our debt by nearly 25% and start a BOOM this nation hasn’t seen since the 1980′s and get us out of the depression within “that guys” remaining time….
  then he could cheer for himself and try and run for President of the World…after all..he is a “citizen of the world” ain’t he…
  
  Report this comment
The-Monk
Posted on March 4, 2013 at 12:05pm
Internment Camps for US citizens when China and Russia take us over?

OK… that’s my conspiracy theory for the day.

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- Cavallo
  Posted on March 4, 2013 at 12:21pm
  Nah, they’ll just take Bill Ayers idea and kill us all. Remember that Bobo the Wonder Marxist’s good buddies advocated the death of 25 million Americans that would not comply with Communist reeducation.
  
  Report this comment
- Outlaw_Josey_Wales
  Posted on March 4, 2013 at 12:28pm
  When Russia went bankrupt, United States played mister nice guy. When the the United States goes bankrupt, Russia and China will take us over. We should of gave Russia a knockout blow when we had the chance.
  
  Report this comment
- Outlaw_Josey_Wales
  Posted on March 4, 2013 at 12:43pm
  @CALLALLO
  Obama wants a socialist/communist government. I will Not Comply with Communist/Socialist reeducation, I will be the ‘Real Life’ Outlaw Josey Wales. I will live up to the name and make you all proud!
kunman
Posted on March 4, 2013 at 11:54am
Just did a trip to Asia. Countries around this part of the world is finding it hard to find simple materials such as concrete because China is using them all. Great to know they are being put to good use.

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- Cavallo
  Posted on March 4, 2013 at 12:13pm
  Just imagine, centuries later, after the collapse and rebuilding of society, future archeologists trying to determine what happened in these ghost cities.
  
  Report this comment
- 1956
  Posted on March 4, 2013 at 2:15pm
  Tell them to use all the gold they’ve been buying.
  
  Report this comment
- GBTVFan_Non_American_Overseas
  Posted on March 4, 2013 at 3:35pm
  Cavallo,
  
  Or just imagine them trying to understand the culture and the history by studying The Onion….lol
  
  Report this comment
RaydocX
Posted on March 4, 2013 at 11:51am
Don’t give BHO the idea… ‘Stimulus money’ to build a new shining Detroit next door to the slum it’s become. How did the Chinese not learn from America’s experiments with ‘build it and they will come’ housing which remains a problem in cities like Chicago?

Apparently even in nations that have made sound fiscal decisions it’s relative… they have merely made MORE sound decisions than the US, and have also failed to learn from history…

Except their grip on the people is absolute, whereas here the Second Amendment has kept Americans free of their would be dictators and tyrants… you know those who want to practice a Jedi Mindmeld on more than just the MSM…

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- Teaparty_Grammy
  Posted on March 4, 2013 at 5:43pm
  Most of the time when OUR government builds “low income housing”, the “low income” can’t afford it, either. I remember when LBJ did urban renewal–what he DID was destroy practically the entire inventory of low-cost housing in this country–older homes that had been divided into apts, etc. Were they pretty, or were they palaces? NO! But young marrieds with very little money, like we were at the time, could afford to live there and have a roof over our heads. Now people just become homeless if they can’t stay with family or whatever. LBJ’s “urban renewal” consisted of BULLDOZING all the affordable housing in the country and replacing it with shiny new multi-story apt. complexes with rents lower income people could not afford. How is THAT solving a problem? Idiot Democrats and their utopian schemes, built on thin air and delusions. I imagine the Chinese have their share of those, too.
  
  Report this comment
TRVTH
Posted on March 4, 2013 at 11:48am
Pavese is just another stooge or fool, really, communism is proficient in the allocation of reasources?
Ever hear of the incessant five year plans, or wait in line all day at the GUM in hopes of finding a pair of shoes in your size. This is what happens when central planning is use instead of free markets, you get waste and stupidity, just like when our government gets involved.

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- RaydocX
  Posted on March 4, 2013 at 12:02pm
  Amen. Well stated. And sadly, this administration would be FINE with that, since the dependency and so their power base would be assured… at least until it all falls apart… but then they don’t want to learn from repeated history.
  
  Report this comment
huey6367
Posted on March 4, 2013 at 11:42am
Communism at its finest. Put the government in charge and everything will be just fine.

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- Cavallo
  Posted on March 4, 2013 at 11:53am
  What is sad is that it is easier to do business in China than the United States.
  
  Report this comment

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