From Warren Meyer (Coyote Blog):
The totalitarianism that is, depressingly, so admired by the US intelligentsia is just going to lead China into the abyss. Already we can see bubbles emerging due to the state’s forced mispricing of key economic inputs, from capital to oil. The burden of spending on triumphalist projects like super-bridges and mega-buildings and Olympics and high speed trains is going to start appearing over the next few years.
Here is my prediction: The Chinese are going to have a bubble burst that will rival any such economic explosion that we have seen in the last century. I have been looking at the situation and by a number of metrics, the bubble is already huge. I would bet against China, but the problem (as with all shorts) is timing.