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Chanos on NDTV: China's Going Down


Jim Chanos, who runs Kykinos Associates was interviewed by NDTV today.

The interviewer comes across as unprepared, unfortunately; he asked Jim very basic questions and mumbled his way through without a teleprompter.

Chanos says consumption as a % of China’s GDP is decreasing, not increasing. (Whoa!) Also, that China might do well, but foreign investors might not – "The only foreign investors who got their money out were in the 19th century, and they had the Royal Navy behind them".

He tells India’s iron ore exporters to "lock in what they can". Copper, steel, too, are all buoyed by the construction boom in China. There is no gradual end of demand. It just falls off a cliff.

Accounting regulations – if governments used the same accounting as companies, they’d look a lot worse.

He’s not short India; it’s more balanced, even with its excesses. He thinks we have the rule of contract (we enforce them, it seems). Perhaps true in comparison with China, but uhem.

The word "Kynikos" means "cynic" which is a pejorative only in English – in Greece, cynics were highly regarded. I like that – hey, I’m cynical as well.


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