News Alerts, Aug. 30, 2013, Morning Edition, 3 New Articles, Real Estate +, Don’t Miss Them

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  1. Novogorelovo – new village near Saint-Petersburg, Russia – YouTube

    What do you think of this presentation of a Multi-Family Residential Real Estate Development Project near St. Petersburg, Russia?

    Published on Mar 9, 2013
    The village of Novogorelovo: Village territory — 66,5 ha; Housing stock — 500,500 m2; Population – 14,300 people
    Social and public projects of capital construction:
    – Preschool institutions offering 180 seats (90?2); 115 seats; 40 seats
    – Comprehensive schools offering 1600 seats (800?2)

    We found ourselves wanting to see the interior-unit layouts. How about you?

    Disclaimer: As of the time of this posting, we have no financial interest in the project and don’t plan to.

    Read the source article … https://www.youtube.com/watch?v=2zqkE9mL hsk


  2. The [China] urbanization fallacy

    Does he have it right?

    “Keynesian” spending on urbanization is not a way to keep GDP growth sustainably above 7%. It is a way, if China’s economy slows so dramatically that unemployment is surging, for Beijing to respond with a massive make-work program to prevent the economy from spiraling out of control.

    This [is] why the argument that China is forcefully urbanizing, and that this urbanization will guarantee growth rates above 7-8% for many more years, is almost sheer nonsense. Urbanization is a cost, and if China borrows to fund this cost, its debt will grow enormously. It is only if the resulting increase in productivity on other projects – that is on economic projects that have nothing to do with housing the new migrants – is much greater than the increase in debt that China will get richer, not poorer.

    Given the current economic system, we think he has it right.

    Read the source article … https://blog.mpettis.com/2013/08/the-urb anization-fallacy/


  3. Is China’s Economy Crashing? | DannyQuah

    The case for China’s crash, however, is based not on finance alone, but on real-side considerations. On these latter fronts, evidence is mixed. China still has 100mn people living on less than US$1 a day, mostly in the relatively under-developed west. If China’s east coast manufacturing belt now sees rising wages and escalating costs, and pollution and congestion, China’s west in contrast remains massively under-developed. Averaging east and west, China’s per capita income today remains lower than that of nine countries in Africa. Since Beijing, Shanghai, and other parts of the east coast manufacturing belt have better than world middle-class incomes, it is simple arithmetic to deduce that wages in the west remain profoundly low, covering a workforce about as large as that in all of the US or the European Union.

    To integrate China’s western workforce into the national or indeed the global economy does not require physically transplanting those workers into China’s east coast factories and urban cities. It suffices that the output that workforce produces can be easily sold elsewhere in China. For that, China’s transportation infrastructure needs to be improved and extended. China needs more government investment, not less. That investment needs to be in infrastructure public goods, an undertaking that private enterprise hardly ever does well.

    In the US, the continental economy is joined together by an interstate highway system. This came about through hard-fought Federal and Presidential action, in a sequence of Federal-Aid Highway Acts from 1938 until as late as 1956. In that time many US lawmakers objected to these plans for their unproductively enlarging the role of the federal government. Only by the 1970s did the US, through extended deliberate government policy, come to have the adequate transportation network that it now enjoys. “The interstate system, and the Federal-State partnership that built it, changed the face of America.” China needs the same.

    The article also discusses the one-child policy’s potential impact and many other aspects about China.

    “Is China’s Economy Crashing?” It depends upon what they do yet.

    Read the source article … https://dannyquah.wordpress.com/2013/08/ 21/is-chinas-economy-crashing/

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