http://www.creditwritedowns.com/2009/07/hugh-hendry-china-the-emperor-has-no-clothes.html

The other thing that comes to mind, is with all the corruption and big government, there is political pressure to inflate GDP numbers, which like in the U.S., causes a large misallocation of resources. However, without the [relative] transparency that we enjoy, China can get away with some crazy things, like building an entire, empty city. I’m sure there is all kinds of huge distortions hidden within their GDP numbers that will come back to bite them later. Although there are some capitalistic gems here and there, China is still a heavily managed, centrally-planned, big-brother state. I don’t care how smart those the Chinese officials in the CP are – they don’t know how to allocate resources without causing great distortion and unsustainability.

My brother lived in Shanghai for 3 years, and I went to visit him last summer. Despite the monstrous growth, I have to agree with the sentiment of this article. I wouldn’t bet on China, either. I’d be curious to see what Peter Schiff thinks of these thoughts, because I enjoy/like his economic principles. He must know, still, how socialistic China is. Like the empty city, I imagine quite a portion of their growth is artificial, and that type of stimulus only comes back to haunt them later.