Faber: China's Unwind 'Will Be a Disaster'

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March 17 (Bloomberg) –- Marc Faber, managing director and founder of Marc Faber Ltd., comments on the state of the Chinese economy. He speaks with Trish Regan and Matt Miller on Bloomberg Television's "Street Smart." (Source: Bloomberg)


Are you saying it is more realistic that we will see 4% and chinese will come out with a report or their own numbers that are closer?

Governments will publish the statistics that they wish to show.

Irrespective of whether that is in china or other countries.

The government control is to assist the quote.

The control whatever they want.

It is not important who votes.

If you are with china, you get some muscle there to count what you want.

At the end of the day investors have a tendency to see through these things.

Do you believe investors are seeing through this?

Have they discounted china and up?


Chinese stock have been just about the worst performing stock since 2006. some will dismiss that.

We have this as a percent of gdp.

This is now over 215% of gdp.

A lot of it is straight finance that is being rolled over.

In addition to that, there are a lot of funny deals.

A friend of mine who analyzes china very carefully pointed out that trade finance between one state owned enterprise in a private company has amounted to over $5 trillion by continuing to roll over the same collateral several times.

There are a lot of funny things that are happening in china.

When the whole thing unwinds, it could be a disaster.

Surely they can do that kind of things within their borders and keep a lid on it.

If there are discrepancies with their export numbers and taiwan's import numbers or if we see all of their export numbers drop ping they could portend this for the rest of asia.

You see that playing through asia this year?


I think investors are not sufficiently aware that the chinese economy is far more there for other emerging economies.

It comes up with korean exports.

If the chinese economy slows down, commodity prices and industrial prices are likely to remain in the pressure.

They have arty come down a lot.

They remain under pressure.

They have less money.

This is not grow as much as before.

Let's talk about eastern europe.

This text has been automatically generated. It may not be 100% accurate.


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