Posted on 09/11/2009 4:44:52 AM PDT by TigerLikesRooster
China economic rebound not real: Talbott
Ping!
“China economic rebound not real:”
I guess that’s fair - neither is the Obama-touted American ‘economic rebound’....
This is the only way we can avoid another world war and destroy the central-banking systems whose ulterior motive is to destroy the sovereignty of nations and force them into a global nationhood controlled by a central government and based on a global currency administered by a world economic ministry.
It would be a tough 10 years, but all nations would emerge freer and more sovereign and would have the basis to then earn real prosperity, not the debt-based illusion of wealth.
The truth too uncomfortable to bear would be denied until you are forced to live through it.
If only we had started to focus on the USA after 9/11/01 and told the rest of the world to FO, we’ll call you...we would be much better off today!
So Talbott joined in to tell the latest big lie. Readers should also follow the link and read the last three paragraphs.
At least a few investment advisors have been telling their clients for months to go long on China (to invest there), while other individuals (import interests?) sponsored propaganda to the contrary. The traitors won’t get away with it.
“...1.4 billion Chinese and one billion Indians have decided to be capitalists...”
A good article except for this line.
The ChiComs are first and foremost totalitarians, and they stated as much to the Soviets who helped establish their central powers. When it came time to set up the economy, they told the Soviets, no thanks, we see what your country’s economy is. We’ll use Capitalist principles with wealthy nations to be wealthy.
But true Capitalism must entail freedom to choose (as Milton Friedman explains in “Free to Choose”), otherwise it won’t last.
I’ve heard stories (purely anecdotal, I know) of 50-story buildings in China that are completely empty save for the ex-farmers who came to the city for work and are now squatting in them. If this is true and China’s economy is propped up by stimulus, I don’t know how the major nations of the world can avoid world war to wipe their debts clean.
Must be a lie because we all know China is sitting on a bunch of WORTHLESS paper. US paper.
If they do not keep it up, they face massive uprisings. Not necessarily led by one group. Several will spring up in China. Peasant uprising have long tradition in history. It is usually massive and quite destructive. The current communist regime was one of them which succeeded in taking power.
The regime truly fears that any relenting of economic drive would lead to collapse of communist rule in China, followed by a civil war. So they have as much motivation or more to dump money into economy as D.C. and Wall St. do in U.S.. Their necks are literally on the line.
The question for Chinese regime is how long they can throw stimulus money, hoping for the best, and when they turn their totalitarian apparatus into action, if it fails.
For now, I suspect that they are wishing that somehow global economic climate would improve without U.S. recovery, and they can dodge a bullet. What else could they do? The alternative is just too unpleasant to them.
You’re in that region, correct?
My fear is that, given the current global economic (and coming food) situation, political leaders will do what they frequently have done when pushed up against the wall: they go to war. This rallies the people of a nation into a unified patriotism and sets aside other concerns for the predominant concern of immediate survival.
What do you think the likelihood of China taking this route for these reasons?
In the old dynastic China, this was a risky move because if you wage massive war against external enemies, you don't have enough troops to guard imperial throne. When the war faltered, it would give easy opening for the internal political enemy to rise up against an emperor far away from the capital bogged down in a losing war.
With totalitarian system in place, it is easier now for the communist regime to wage such a war to avert internal crisis, because totalitarian apparatus can whip up hyper-nationalism and non-stop fear of state security. Communist institutions of propaganda and secret police come in handy.
If the current regime falls rather anticlimactically out of incompetence or total corruption, the hard-line regime could succeed it and pursue aggressive military expansion.
However, I doubt that their military adventure would secure any permanent gains. In the end, there would be internal break-up and real change will be set in motion. It won't be pretty, though.
Crippling debt, high unemployment and the retirement of baby boomers means people's ability to spend will diminish. "Stimulus (packages) around the world are a mistake, because if government could create jobs we wouldn't need private enterprise," he said.
On the money - thanks for the ping, Tiger.
this was a risky move because if you wage massive war against external enemies when you have internal political crisis
Seems believable. China has the advantage of so many devaluating dollars that they can import food and energy and anything else they may want. But without more balanced trade, and balanced production and consumption they are handcuffed to the west and specifically us.
On the other side, any economic recovery on our side will create inflation and another eventual crash.
Remember, if Greenspan hadnt created all that cheap money in 2003, there would have been no recovery OR housing boom because two wars and tax cuts and government spending would have sucked up every dollar in the economy. And the same thing is playing out now on a much bigger scale.
I assumed the clarification when I read your original.
Good response. Thanks.
Another issue with China is that, thanks to the anti-female culture, the number of males with no hopes of marriage and family is dangerously high. In the past, when nations face many millions of men with no hope of marriage/family, those nations tended to become very aggressive militarily (better to ship those guys off to fight in other nations than hang around home causing trouble).
Also, the new ruling party elected to Japan — IF they are truly pro-Chinese — changes this situation drastically.
We’ll have to see what happens.
What about Chinese men marrying Russian women? Russian women need men who aren’t drunks with excuses - and the Chinese men need wives...
Transparency?
First the Commies complain about the value of the buck, yet, they are pegged to it
We hear they are stockpiling commodities, iron ore specifically.
The ChiComs are spending $800+ billion on stimulus.
Now at the Ambrosetti Workshop at Lake Como, Cheng Siwei, until recently Vice-Chairman of the Communist Party’s Standing Committee now a sort of economic ambassador for China around the world says Red China is buying gold.
Why is it Communists are never to be trusted?
yitbos
Whatever the fluff that surrounds Chinese data, one thing is clear, foreign companies are expanding in China. Case in point; both Volkswagon and GM are investing billions to EXPAND auto production in China.
Either the data has really pulled the wool over the eyes of foreign execs or automobiles really are flying out China's showrooms.
Re. east Asian commodity-hogging... Have you looked into commodity ETFs and ETNs? That might be something to learn about, if government and constituent anti-”speculator” efforts are watched closely (kills companies/profits). Less experienced investors would need to either follow a trusted guide, and more experienced investors without such ETF/ETN particular experience need to do a lot of homework. ...could save time against checking commodities and other events very frequently, though.
...maybe watch for a Chinese bottom, BTW?
Somebody got rich in Zimbabwe, too.
yitbos
If Chicom says foreign business unjustly exploited Chinese for years, what would foreigners say? Especially Obama and other Western leaders who now desperately hope that China would revive world economy. They are holding a short end of the stick at the moment.
This is likely to happen when Chinese realize that they can no longer put up the mirage of high growth and ever stronger Chinese economic engine.
Most likely Red China, a nation without rule of law, will use the tried and true Rooskie model.
Tax law.
yitbos
Foreign companies investing in Communist China is one thing. The individual investor is another.
The Shanghai exchange has got to be bogus, the facade of legitimacy for all Red China investment. That goes for ETFs. They are just another foreign dollar investment vehicle for brokers. There is no ownership of assets.
There is no private property in Red China.
yitbos
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