Egypt on the Brink & China's Ghost Cities | VICE on HBO

this week on Vice we send Ryan Duffy to China for a peek behind the facade of their booming economy we’ve walked around in this gigantic gigantic building there’s no one absolutely no one here and then we go to Eaton with the aftermath Ferrum spring is ripping the country apart strong-ass here does you a mystery no one knows where it’s going but we’ll be there uncovering the news culture expose the absurdity of the modern condition that little child has a huge gun never seen anything like this before looks like hell I was interviewing suicide bombers and they were this is the world – power but hi I’m Shane Smith and we’re here in the Vice offices in Brooklyn New York China is booming its economy has been growing with double-digit growth for the last three decades in fact it’s estimated that China will overtake the US as the world’s largest economy in just 20 years but what we don’t know much about though is the health of that growth there are signs that China is headed for the same kind of real estate collapse that rocked America in 2008 so he sent Ryan Duffy to see what the world’s next real estate disaster might just look like welcome to the face of China’s real estate boom welcome to tienda Shen China’s fake Paris playground just south of Shanghai replica Paris leaves a little bit to be desired a little bit specific remain humans what makes this copycat Paris interesting is it just that it’s a copycat Paris if – completely abandoned copycat Packers used for little more than wedding photos and curiosity see some oh oh oh yeah okay okay okay how do you guys truce get married here yeah yeah the whole thing and really got greedy it’s not actually a coffee place I mean this is actually real oh listen weirdest Jalen Chavez endured open so she wasn’t touching stolen video videos and Dolan bored so decided to build this pretty impressive Raptor garden Tower which is a fine idea and then they built all of these parts with far the I can see which was also a fine idea until everyone decided collectively we don’t want to live there real estate has been a major growth sector for the Chinese economy accounting for about 13 percent of the country’s soaring GDP in recent use but a lot of this construction has been wildly speculative sure the Chinese government counts these projects as growth but the problem is the China calculates its GDP through property construction not property sales people talk about the problem our case effect to China’s GDP is true that you know 10 years ago China was more about an export-led economy but nowadays the property anything is single most important factor to this the property market is very much embedded in the whole part of China growth all the speculation has led to a glut in the market there’s simply way too much real estate inventory in China and it’s leading the problems like this five-year-old billion-dollar fake parents with an occupancy rate of only 2% and the problems only getting worse the simple supply and demand theory has been replaced by build now sell later voodoo economics that’s led to over 64 million empty homes and at least 11 massive empty ghost towns across the country places like the kangbashi district de Bordeaux’s in China’s Inner Mongolia kangbashi was built in 2004 with cost estimates as high as five billion dollars and it’s a complete bust designed to hold 1 million people it has a population of only 30,000 meet Bonner a retired City Court worker and one of the only cab drivers in a town that barely needs any cabs at all so these are all really new buildings

right Oh William before we also loosen it select the chair thoughtful yeah just Norris happy meal cut a lot citrus color ah did you come to our what’s gonna happen to all of these half-built high rises jungle Lama their buildings that are mid construction that are now just completely abandoned in addition to the ones that are done and also completely abandoned Thank You kangbashi is a stunning sight block after block massive high-rise buildings some finished most unfinished and none with more than two or three tenants a perfect location for a post-apocalyptic science fiction film but apparently a really bad location for a city so it’s totally surrealist you walk around the city and they’re just endless developments where you see this on the outside and just Grand Designs and schemes I’d love to live here but then you just poke your head right behind the scaffolding and it’s so far from what they had planned we talked to a local investigative reporter about how a real estate wreck this massive is even possible in modern China Chicago Juanita negatron Tiguan you wanna see our take on Tejada come down see aha Straight Outta Joseph indeed huh are they don’t contradict a larger Todd’s handle she not even hiding from the Jackals we all don’t come to a lecture hall he should help cheat your daughter uncle Elizabeth had a honeymoon check out that I’ve heard about I meet with you tell dr. Townshend of Melina did she cry Yoshida Motoya work education today are now oye Mira la Rocha true at home terrible addiction heart jump away I’m gone since coming here in Oregon solution belches OH – on the mouth hydrologic hi mommy we’re doing our own small sample size research right now go ahead and call that one not lived in so we’ve come down for flow so far no residents most of the doors are still boarded up oh you only go down to the subfloor see if that I’m entity what’s your guess super-nice ballroom I’m come back here this creepy as coffin room if that was your guess you nailed it we’ve walked around this place with impunity in this gigantic gigantic building and a bunch of the neighborhood ones and there’s no one absolutely no one here we wanted to know how the hell someone sells apartments in a place like this so we met up with the local real estate broker to get the pitch is like me or I never said pretty nice spread this apartment in Manhattan is don’t channel not only protocol you know Gloria’s also supercharged rocket surfer by without you back oh the total generation I know that area – Cisco sarahbooth Oreo they look like they’re at least two filled residences over there right you guys go side yeah do a job I’m a waiter was there ever any concern as this place was being built that know if you look around I’m not really sure this place is panning out should we maybe rethink this thing particularly bajo playback you mean just some secret Yvonne the colinear coming Eva let’s change it to the photographer – super fun go yourself that’s the – what Goodwin and I soul into the cocoon is a dive a it’s all either you got the part when you go put in committed trigger we knew that there had to be some serious consequences to all of this failed construction so we sat down with Jim Chanos a prominent hedge fund manager to talk about the current and potential fallout from these ghost cities we began looking at China about three and a half years ago and we were trying to figure out how it was that the global commodities markets were doing so well in the teeth of the biggest recession in generations and as we did more and more work we realized we were looking at something was pretty much unprecedented in terms of the scope and size of basically the world’s largest construction site at the end of o.9 China had five point six billion square meters of property under construction

that equaled a five foot by five foot office cubicle for every man woman and child in China and basically local governments for very very little compensation are seizing the land bulldozing the homes that are on that land and are then developing high-rises that’s just simply a transfer of wealth and the numbers is estimated to be as much as five trillion dollars u.s. in kangbashi it wasn’t hard to find people willing to tell their own stories of displacement as long as we agreed to keep their identities hidden even with nothing left to lose they were still living in fear of the local government dodging motion DT D to D when you Authority with Bashar man generation I wanna yell audience oohs oh baby – never tell it to D is your you know all the other program I know Gandhi viability measure where is she we’re cool bhishan how Papa dorks Timmy the pudding well cause y’all talk but it didn’t stop there not only were the lower-class farmers essentially kicked off their land but China’s middle class is lost out as well investing in this real estate with increasingly bleak prospects of return Papa so dollar give you candy and chocolate chocolate any Pedro Chaka Khan Okura Jota ugh okay I choose a total party – my Genie audience epc you could buy hold on I said that you were mommy you shush me shows you the win here not variable you follow me Sean are you better off oh yeah don’t do this hold on dude Kyle agriculture ah you too little bit I’m not drawing out the words here but you can hush wanna for sure my lobby sir Pierre Torah you will saw you kill me out it’s hard to overstate because at the peak of our bubble construction got to about 16 percent of GDP but one-sixth it’s been running at 50% in China now for three years three times our love any entity that relies on a series of one-off transactions that are uh neck anomic in order to bolster you know the country’s bottom line not a company’s bottom line is headed for big trouble making matters worse China is still building massive projects that are destined to become ghost towns just like kangbashi in fact a replica of Manhattan’s financial district – eunjin is under construction right now it’s as if China either doesn’t understand that these ghost cities are problematic for the world economy or they’re just choosing to ignore it true fashion Allah gave a ginger midget with a trip omelet ingenious yeah oh ha they generate antennae it’s really after us China and the US are more and more integrated than ever before so if China’s economy is from two crash that’s going to be bad news for American business a few years ago I called this economic model to treadmill the hell and I guess I would have to revise that I saying it’s a bigger treadmill but same destination two years ago Arab Spring caught the world’s imagination young people rising up against dictatorial regimes quickly became a global media sensation and as it turns out the aftermath of revolutions tend to be very messy because once the dictators are finally ousted the resulting power vacuums can lead to even more chaos and more fighting Egypt for example hosted longtime dictator Hosni Mubarek only to quickly find themselves under yet another autocratic regime so once again youth have taken to the streets as the revolution there continues better eat instead of that big Scott Wars inflation went up the economy went down Abell what we’re hearing is justice for chaos every person that we’ve spoken to no matter what group they’re affiliated with has lost people they want to continue with the message that their friends were caring for never killed the Arab Spring hit Egypt world was inspiring even overthrowing an oppressive dictator 30 years closely

Mubarak the Revolution was a popular uprising of different groups uniting for the same calms but it cost 840 Egyptians their lives and injured at least 6000 in the process when the dust settled party most poised to rise to power was the most organized the conservative Islamic group the Muslim Brotherhood for over 30 years the Brotherhood was a radical Islamic organization considered to extreme by a succession of brutal dictators so extreme they once counted a sound bin Laden and his number two Ayman al-zawahiri as members but on June 24 2012 dr. Mohamed Morsi the Brotherhood’s chosen candidate while the country’s first election by a margin of just 3.4 percent but the honeymoon was short-lived just months after his election Morsi granted himself sweeping constitutional powers earning himself the nickname Egypt’s new fairly we wanted to understand exactly why everyone is so angry so we sat down with emma de llegar and outspoken economist whose books were banned by Mubarak well Aquino little as a lemma stamina and now italico la women mingi Matawan a muslim in el magnocellular Guatemala is Elmer Gleason a Lelouch or talk you ino mas de filma de Nino Alice Korean way as ilhoon Yael America says Aloha cuckoo cuckoo doll a few kool-aid Allah yeah any dictator LEM me a salah el asunto de la Mubarak nerves a colossal taught Hitler making matters worse this turmoil has all but killed tourism revenues and deeply worsened Egypt’s financial crisis doc odine academic sub our sleuthing me he en al you know those are water said honey holy this our students for me and I and Wasel big new Tiger was how many I had were being merely our doula filler Hillel Orbison Hayek solid actor me Luxardo work to tell attention well be tell Allah what Allah has in sort of an ITV asthma Cobra this will add that laksa saw the victim i SES he is our le mock them I was over to ship an article in here lend the headed Dhamma bro well equivalent Azam back know where is the rage at were see more concentrated than a three or square anti-morsi anti-muslim Brotherhood protest demonstration basically saying morsi’s a liar you should get out now user at the forefront of the Arab Spring and again second uprising through both revolutions Gigi Ibrahim has been one of their most vocal leaders people are still out there on the streets because of anger anger and injustice mercy came through elections the first thing he did was give out a declaration that makes him have the legislative power the judicial power and the executive power that’s not democracy we’re seeing really a mockery out of this whole revolution furthering tensions on the ground is the fact that Morsi has not reformed the dreaded Ministry of Interior the security rules Mubarak used to suppress protesters street police attack protester in all different kinds of ways Norman beeping dragging stripping torturing sexual assault these targets eyes I think at least 3,000 people have lost at least one eye the lack of justice and freedom are bringing people into the revolution even more freedom of expression is the right that we’re fighting for because it’s a right that we gained after the Revolution that we would like to keep the refugee didn’t end after or see ultimately the revolution is continuing and as long as and the means of evolution have not been fulfilled you’ll always find people on the street the anger seemed everywhere so much so we couldn’t even take the subway without running into desirable home Stanford Cosette’s there’s so much rage directed at the Muslim Brotherhood so we tracked down their spokesperson another Imran to get their point of view

it’s a bit troublesome for the past four and half year but we we are used to this yes we know it’s not that easy Egyptian people hasn’t practiced democracy maybe ever so can you tell us what the vision is that the Muslim Brotherhood has for Egypt we are a society which was formed to revive the Islamic vision which can include all aspects of life and now we have a chance to apply our vision in Egypt which hopefully will be successfully there are a lot of detractors from the psychic people are saying well nothing’s changed we had one dictator and now he’s been replaced with an even worse dictator how does a government deal with the situation like that because when you go out to Tahrir Square or the presidential palace and you talk to the taste-off it’s crazy oh yes exactly there were tens or hundreds of young people who are throwing Molotov cocktails into the presidential palace it’s unprecedented for example if you heard about the black bloc yeah the black bloc for example these are vandals this is the point I mean it’s not a matter of if you agree with already it the matter of we don’t have a specific comprehensive vision of what we really want it’s like a child it please ask them don’t tell them so what so what’s what’s after what’s after this there’s not a guy Egypt’s black bloc is one of the most active groups in the post-revolutionary Front their name is dere I’m the black masks and hoods popularized by Western protesters for years and adopted by Egyptians to conceal their identities since Arab Spring so this is the martyr wall here is all the people that have died during the revolution I’m gonna go be with the black bloc right now they are a group that’s been labeled as terrorists by the government they want us to meet the in an alleyway around the corner from here no one really knows what their deal is they’re a bit of a mystery alright guys thanks for meeting us tonight can you tell me what the main mandate is for black bloc the little hack concerned Matt Davis mishits I mean I hang on Catalina and I’m called solid hakuna shut up when I’m in tactic black bloc Nana and had Moses a lot smellier let’s gonna hone Lomond scale bad luck table from : family black look anomalous babies with his whole being Jewish to Beckett like a mascara and his lean developed suddenly honey where’s Lina tomorrow hugger let’s go a little early I have a news burner now – good morning difference being of him des koala Nessarose our own nests at elusive our Palace are awfully enormous eros over you tell me about some of the sacrifices that you’ve had to make a banana lagoon denaro from shock sayin lower grab a sell-off we know of anything I can limit the cabinet met from McCann the result conversely declare agony column is phenomena a little higher than air but have a war then his hunger Charlotte so I buy a new toaster meal when I – trust me Misha temper when True Blood focuses the iggy with a tri-gate attila the player wanna swim in abominable scary these kids have plenty of reason to be paranoid their friend Gabbar Salah was only 16 November of 2012 when he took his place on the murder wall so we’re meeting with some of the protesters they’ve agreed to show us essentially they’re a lab where they make multiple tails and these homemade bristles in a strange building nice to meet you so what are some of the techniques that you guys use and how do you fight basically we don’t have any heavy weapons we just have Molotov we need to to win some field in the battle we’re not terrorists we are fighting for our rights we are fighting for our country and so this violence that exists in post-revolutionary Egypt has it affected you and your friends and your families everyone has been affected I’ve witnessed some of my friends being killed they are murders murders yeah and that gives you even more motivation to fight I assume yeah so they didn’t die

in vain yeah the black bloc informed us they would be taking part in a massive protest that so right by the presidential palace its two-year anniversary to the day when Hosni Mubarak stepped down what these people want is president Morsi to step down the barbed wire the front door of the palace looks like they’re trying to watch the down imagine that this happened and watch at the White House smashing the front did badly police they start with water than the first wave of retaliation and you’re done I feel like it just sends a layer of my skin off their bill to switch the rubber bullet elephant male hey Clifford and dirty Casa de mucho de Casas de Iggy need Etrigan Atala where has he here solar exile axel Howlin a legend tenanted Sheffield multi-camera photo you name la high laminar in figure ah poor mountains of ice are just falling into the sea we’re in for trouble indeed this is where the Soviets tested all their weapons so this is the epicenter of a nuclear bomb the last six months you have 9000 I easy that’s an IE once you get someone in they can never leave even police helicopters don’t dare fly over here because two years ago one was shot down by an anti-aircraft gun fun place to live okay let’s get out of here