Posted on 09/08/2019 10:16:18 PM PDT by BeauBo
So much production in industries like steel is based on demand for more production, but should that demand falter, the whole system could come crashing down...
Consider crude steel production, a test-tube example of how command economies get it wrong. In the mainland this stood in June (2017) at an all time monthly record of 73 million tonnes, five times the total production in all of Europe.
Why is so much steel needed? ...to build more steel mills ...to build more shipyards, ...so that more ships can be built to carry more iron ore, ...to build more shipyards...
What we have here, in short, is a giant Ponzi scheme. In a Ponzi scheme you pay out the winnings of the first entrants with what others later pay into it. As long as it keeps growing everything is fine. When it stops growing it collapses...
Command systems may be good at deciding where to direct economic effort in wartime but they are hopeless in peacetime at deciding when to stop... what you get is economic cancer, uncontrollable growth.
You don’t see it right away. Any Ponzi scheme looks just fine as long as more people can be found to put their money in. But the end is inevitable and the longer it is delayed the more resounding the collapse.
It has so long been delayed in the mainland that, when the end finally comes, I believe more than half of the loans and advances of the financial system will prove irrecoverable...
When will it happen?
I cannot tell you. No one has ever conducted so big a Ponzi scheme from so high a level of authority before.
(Excerpt) Read more at scmp.com ...
At some point, the fraudulent house of cards that is the communist Chinese economy, is going to collapse.
The President is doing the Lord's work, by getting Americans to line up substitute suppliers before a collapse over there catches us flat-footed.
IDK dude, China has a lot of cards it can play.
Mostly, though, they’re causghi in paying for past ecpectations.
When these ‘ghost’ cities began to appear in China a decade ago....I figured that the tail-end of this boom-economy was on the horizon. At some point, a collapse will occur.
If the Chinese economy goes into the toilet, I wonder if they will start a war?
“If the Chinese economy goes into the toilet, I wonder if they will start a war?”
The historically Chinese thing, would be a civil war.
And you would be correct in wondering that! Why did Japan attack us and begin WWII in the USA? Economics - we were crippling their sources of materials to build their war engine and empire, mainly the oil they required but also other materials that we blocked them from obtaining.
China could very well consider war in order to salvage the building of their nation (and they are rapidly building their war engine as well as trying to build an empire).
https://youtu.be/TiTDU8MZRYw
Siberia would make the most sense.
The situation for China now is very different than for Japan prior to WWII. Japan was a unified strong country. China has never been a unified country, and until the communists came along, China was simply a name for the land and not for a country. China, the land, was made up of many different nations and peoples controlled by many different groups (and colonists). The communists are trying to unify an empire that never existed, and is doing so by force. They (the communists) aim to control all of Asia and the Pacific region through force.
President Trump and the USA stands in their way. This friction could lead to an attack by China. Sooner would be better than later, for us, as we could easily defeat the Chinese communists. China knows it's best for them to wait until later when they have a stronger military and resources, but a collapse of their economy could provoke them into causing a war. (A war we would win.)
IDK dude, China has a lot of cards it can play.
Mostly, though, they’re causghi in paying for past ecpectations.
Jake Van Der Kamp was an excellent columnist for decades at the South China Morning Post.
There’s no good exit strategy for a Ponzi scheme.
Not so ridiculous. The USA was a very lucrative trading partner for Japan prior to WWII. Until the USA blockaded trading with Japan. Japan attacked even though much of their cash resources were held in the USA. History shows that desperation can cause wars.
You can see it now. The border between China and Siberia used to have all of the people on the China side, and open land and resources on the Siberia side. Now the Chinese are on both sides, quietly building settlements and farms.
[If the Chinese economy goes into the toilet, I wonder if they will start a war?]
LOL!
It’s late here in the EDT Zone.
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