'Every province in China is Greece' – Larry Lang
Popular commentator and finance professor, Larry Lang, didn't want anyone to hear his real thoughts about China's economy, but his Oct. 22 speech in Shenyang City is making the rounds.
The Epoch Times reports on Lang's roundhouse of the Chinese economy, a speech that he requested not be recorded or reported to the media:
Firstly, that the regime’s debt sits at about 36 trillion yuan (US$5.68 trillion). This calculation is arrived at by adding up Chinese local government debt (between 16 trillion and 19.5 trillion yuan, or US$2.5 trillion and US$3 trillion), and the debt owed by state-owned enterprises (another 16 trillion, he said). But with interest of two trillion per year, he thinks things will unravel quickly.
Secondly, that the regime’s officially published inflation rate of 6.2 percent is fabricated. The real inflation rate is 16 percent, according to Lang.
Thirdly, that there is serious excess capacity in the economy, and that private consumption is only 30 percent of economic activity. Lang said that beginning this July, the Purchasing Managers Index, a measure of the manufacturing industry, plunged to a new low of 50.7. This is an indication, in his view, that China’s economy is in recession.
Lang, who has PhD from the Wharton School, is a professor at the Chinese University of Hong Kong. He is also a consultant on corporate governance to China Shenzhen Stock Exchange Hong Kong Government.
Other noteable analysts have said that China, not Europe, is the world's number one economic problem right now.
Image of Larry Lang on YouTube from a previous engagement