Don't Fall In The China Trap: It could be part of a collapse of the global monetary system.

Daily Reckoning ^ | 11/21/2025 | James Rickards

[TBP]

Trump should declare China a terrorist state.

[Jonty30]

The root cause of the collapse of the global monetary system are because of those who use the power of government to stem their losses in the stock market.

[unclebankster]

Not very surprising.

The manufacturing sector has been pretty stagnant since the last quarter of 2022.

There’s probably a few months of expansion, but not anything notable.

[Governor Dinwiddie]

Ever since the California Tong Wars, I've never trusted a chinaman. Except Charlie Chan.

[MarlonRando]

I trust Hong Kong Phooey. The numbers out of China can never be trusted. The elite of China have to provide good numbers or else their corneas are on Ebay. Me no likey Chinamen. They killed millions of people with their bat virus weapon

[Brian Griffin]

The PRC has the strongest major economy on Earth.

[laplata]

This is not surprising.

[Owen]

The phrasing that rendered the entire article worthless was when he announced that ghost cities would be negative GDP according to GAAP.

GAAP is a set of procedures to evaluate companies. There are zero procedures in it to evaluate countries and certainly not the GDP of countries. GDP bears no resemblance whatsoever to earnings.

And as I said that’s silliness rendered the whole thing useless.

[Nervous Tick]

>> The short answer is that we could be looking at something much worse than a crashing economy. China could be part of a collapse of the global monetary system.

Spoiler: the short, short, abbreviated answer is BUY! MORE! GOLD! Now! Sell your house, sell your children, buy freaking GOLD!!! What, it’s in a bubble? Forget that! C’mon man! $4000 an ounce??!? That’s not an outrageous price, that’s a BUYING OPPORTUNITY!!!

[Nervous Tick]

PRC = strongest economy? By what metric?

[DIRTYSECRET]

Something tells me it’s gonna be awesome. It’s excrement in the intestines that need a place to go.

[Fireone]

Silver is the sleeper here. Siver to Gold ratio is out of whack. $50 Silver IS the buying opportunity.

[sauropod]

Bkmk

[sockmonkey]

Investing guru James Rickards says gold will hit $27,533 an ounce —

[odawg]

“GAAP is a set of procedures to evaluate companies.”

GAAP governs all accounting wherever accounting is used.

“GAAP stands for Generally Accepted Accounting Principles, which are a set of rules and standards used in the United States for preparing and reporting financial statements. These principles ensure consistency, accuracy, and transparency in financial reporting across various industries.”

“And as I said that’s silliness rendered the whole thing useless.”

You don’t know what you are talking about. And I personallly would keep my mouth shut around James Rickards when he is talking about things having to do with his skill sets.

[Owen]

Dood Go ask an AI how GAAP applies to GDP. That’s what he said, not me. I ridiculed it because it deserved it.

[CapnJack]

Admitting failure like drinking bitter tea. (Charlie Chan in Egypt)

Truth sometimes like stab of cruel knife. (Charlie Chan at the Race Track)

[odawg]

“That’s what he said, not me. I ridiculed it because it deserved it.”

When the Pentagon calls you in for advice on how to conduct war games, as they do Rickards, let us know and then I will consider what you say. Until then, you are way ahead of your skiis.

[Rockingham]

The author may be unclear in his reasoning about GAAP but he is not wrong. Economists have developed accounting principles for determining GDP and national wealth. These in turn rely on GAAP and Government GAAP accounting. A proper assessment of China’s economy would thereby rely on GAAP to write down the value of China’s “ghost cities” and related infrastructure, making major subtractions from China’s putative balance sheets for both private and public entities.