Gordon Chang is a China hater but if he’s right the Chicoms will take us down with them.
As much as I would like to believe it, Gordon Chang has no credibility. Nothing he predicts comes true.
Sounds like the housing bubble in the US on steroids.
...ingenious bankers are lending and simultaneously allowing borrowers to deposit identical amounts with their institutions at identical interest rates.
—
Sounds like a zero sum game. I borrow $1M @ 6%, then deposit $1M @ 6%???
Walmart will go out of business.
Doom and gloomer bump.
Ed Dowd, who I find is a like-minded brother, nails this situation.
China’s two largest cities are in lockdown.
https://newtube.app/user/Hostage/5KxR5nR
The real reason is the population is going hungry and hungry populations are known to revolt en masse.
Ed knows history. When regimes with a hungry, angry populace, resort to Martial Law, they know it’s only a matter of time before the masses come for them. In history, such regimes look for a scapegoat to direct the restless population’s attention to.
That scapegoat is Taiwan.
I doubt China or even the US will collapse.
But we may end a depression that will take years to crawl out of.
But don’t worry..our humble leaders will continue to eat big juicy steaks..get $200 haircuts and fly around in their private jets.
And basically live as though there is no tomorrow.
So the inherent contradictions of China’s capital squandering policies are causing its economy to contract and perhaps collapse. Europe has committed first cultural suicide and now economic suicide with its self inflicted green lunatic torture. The Biden cabal remains in power in the US and continues to tax, regulate, print and destroy. Would say going short on stocks is a reasonable investment strategy.
World Economy Is Headed For One Of The Largest Meltdowns Ever
Because a Great Reset is needed to Build Back Better into a New/Liberal World Order
A command economy presupposes that those issuing the commands know what they are doing and how to avoid human nature.
Communism & socialism are utopian dreams BUT no utopia has ever lasted independently beyond a generation (if that long)!
The socialism of post WW2 Europe only lasted as long as it has because Europe could and did off-loaded the very expensive military on the USofA. Consequently, for the first time in several centuries, Europe has avoided their endemic wars.
China is inheriting the whirlwind of the past several centuries. They have the mandarin mindset that is comfortable to them. They remember the Middle Kingdom that had all looking up to them as the superior civilization for the past 4-5 thousand years. They have a ruling oligarchy that opens their deprived marketplace but locks down reciprocity, thus creating severe imbalances as a results. They have built their military into every aspect of their economy and then realize that it is becomming the tail that wags the dog.
To hit the difficult-to-attain targets, ingenious bankers are lending and simultaneously allowing borrowers to deposit identical amounts with their institutions at identical interest rates. This is the equivalent of an economic 'perpetual motion' machine. It is equally valid as an impossible mechanism, doomed to fail.
I like the train analogy at the link.
Equally applies here in ways.
“But Central Planning always works!”
—Control Freaks everywhere, including “progressives” and other mentally ill narcissists
So Xi will choose war.
Another day, another garbage article from 19fortyfive.