Posted on 07/22/2016 11:10:48 PM PDT by dennisw
Having followed China's biggest risk with great interest for the past year, which incidentally is not its $36 trillion in debt, nor its defaults, its zombie companies, its ponzi "wealth products", its currency, its capital outflows, its crony capitalism and corruption, nor its gargantuan capital misallocation, but the threat of a social revolution as a result of a surge in unemployment as entire zombie industries fail, that has always been true biggest risk for Beijing (something the Politburo knows very well), we found it less than surprising when last September a Chinese coal company announced it would fires 100,000.
That was just the tip of the iceberg for China's insolvent commodity sector, which just happens to employs tens of millions of no longer needed workers.
Things then rapidly escalated, and as we reported in March, China's mass layoff wave was only just starting when it was revealed that China aims to lay off 5-6 million state workers over the next two to three years as part of efforts to curb industrial overcapacity and pollution.
We expect that tens of millions more will or already have been fired as China struggles to resolve it gargantuan "overcapacity" problem.
But if indeed millions of workers have already been fired, then what are these recently laid off workers doing, and why have they not rioted as Beijing, is so terrified they will?
We now have an answer: according to South China Morning Post, Didi Chuxing, the ride-hailing company which is China's equivalent of Uber, is claiming to have given more than a million jobs to former heavy industry workers across China, according to new research from the firm.
Playing Chinese Checkers?
China is imploding.
Their system doesn’t work.
It’s parasitical, not self-sustaining, and they’re too big.
They’re collapsing under their own weight.
Y thought there was s shortage of farmers
The Big Short is playing on Netflix. If you haven’t seen it, I would strongly recommend doing so.
I’m sure that if Xi asks Hillary, she’ll know just what to do (without inflaming those who have made billions while employed by the government).
China will eventually flirt with returning to Maoism.
There will be war
Reminiscent of the 5th Element.
“We expect that tens of millions more will or already have been fired as China struggles to resolve it gargantuan “overcapacity” problem.”
Consumption has to be stimulated. Wonder how China is going to that?
Ok, that just gave me chills. Listening to CNN today, imminent civil war in Europe from immigration overburden as a result of Merkel’s no limit policies was repeated at least 5 or 6 times during their coverage of the Berlin shooting. Everyone seems to be waiting for the pin to drop. China and Europe boiling over at the same time will not be good.
Just as we’re learning here, an economy can not survive top down management.
China needs to put those masses to work invading Africa and exploiting/transforming that dysfunctional resource-rich continent into goods for the world. From what I gather the Chinese already have a huge foothold there. China (or America or any other advanced country, for that matter) fully conquering and taking over that place would be a win-win all around.
Nothing like an unstable country with nukes. And advanced capabilities thanks to Bill.
You mean communism’s no good again? Damn!
You’re right about Africa and surprisingly few people realize that.
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