price firming on the sound of pennies dropping, page-4

1912 & M, I don't think you know what you're talking about.

12-14% GDP growth in 2006/07 were due to massive constructions and Chinese love good face for the 2008 Olympics in Beijing. They have built many ghost, empty buildings for a big show in 2008. Underneath this big show is nothing but empty promises.

2014 onwards, Chinese want to focus on consumptions eg people spend money shopping clothe. I don't see how retail sell will boost iron ore demand. Once Chinese spend their savings on consumption, there will be no money for buying new houses (hence no new constructions).

Why in the past they build so many empty buildings? From what I know is many government officers get kick-backs and bribes to approve those projects. Now government is aggressively target bribes and corruptions as we see in GSK pharm case. Government realised those projects (in bribes) cost government too much money. For example, building 2008 Olympics too many people took bribes and prices were over-inflated cost government too much money. This is very different from 2000 Sydney Olympics where we focus on return on investment.

Just IMHO.