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

Posted: March 5, 2013 in Uncategorized
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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:

CBS News 60 Minutes Takes You Inside Zhengzhou New District

 James 5:1-5 – Now listen, you rich people, weep and wail because of the misery that is coming upon you. Your wealth has rotted, and moths have eaten your clothes. Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like fire. You have hoarded wealth in the last days. Look! The wages you failed to pay the workmen who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty. You have lived on earth in luxury and self-indulgence. You have fattened yourselves in the day of slaughter. You have condemned and murdered innocent men, who were not opposing you.

Check out the video http://www.youtube.com/watch?v=rPILhiTJv7E

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