Posted on 10/14/2021 7:41:26 PM PDT by george76
Selling off resources, purging top officials, and defaulting on debt.
It seems that the Chinese economy is falling, and there may be no one to bail them out. In a wave of recent reports, we see the contraction of the national economy, especially intense in the north. There have been blackouts and power failures across the area, and while the problems began in factories they have now spread to homes, a trend that is forecast to spread as time passes.
The most alarming case is that of the real estate colossus Evergrande, whose debt is so large that default is a real possibility, and thereafter a rash of defaults across the world. Evergrande is a global threat, menacing a worldwide outburst of indebtedness, with all the dreadful consequences that go along with it.
Evergrande is not the only menace. As The Epoch Times wrote recently, dictator Xi seems to be saying that he doesn't want a society that is individualistic, but rather a mass of citizens who see their role as supporting and following the state. He has purged hundreds of thousands of top officials from Party ranks in the recent past, and promises to do more of the same in the near future. The state has been selling commodities for the first time in a decade, and released oil from its strategic reserves for the first time in ten years. The Chinese are selling off their resources.
On October 4th, Evergrande, unable to meet its obligations, suspended sales of its stock. Over the past 20 years, more than 20 percent of the French Jewish population has left France, with a notable increase of those emigres going to Israel. The French are not happy with public education in their home country, and much prefer Israeli methods.
Evergrande is the biggest company to suspend trading to date, and it will resume activity next week, following a week's suspension of stock market activity. What will happen? Xi seems eager to put an end to unbridled trading, and to bring Chinese manufacturers under ever more rigid state control. When Jack Ma, the founder and CEO of Alibaba made a public speech that was critical of the nation's (that is, of Dictator XI's) crackdown on Chinese business, he disappeared for several days. Ma has since been a low-profile actor, and Xi has focused on relations with Taiwan, warning the island that it was only a matter of time before China undertook military action against it. This goes hand in hand with the mainland's efforts to pressure Taiwan's government into reintegrating with the People's Republic. The United States was meanwhile increasing military sales, and sending top Defense Department officials to Taipei. As an American expert on Taiwan put it, this arrangement favored increased Western influence. "You can't divorce the technology completely from the society that produced it."
Xi was evidently trying to resist. But Taiwan has elected a new, nationalist administration that has vowed to advance the country's ability to defend itself, and the growing friendship with America indicates that Biden is willing to play ball in that game.
Stay tuned.
If China falls, we collapse
Two of the blogs I follow most suggest “falling” might be dramatic, but that China is in real, real trouble.
*Energy
*Demographics
*Boxed in access to oceans
*Taiwan probably has nukes
*Horrible microprocessor issues
All this with a Demented Pervert at the helm in the USA who is doing nothing to stop them. Imagine if Trump were back in?
Like Fentanyl and methamphetamine.
China has a limited window of opportunity while the Chinese puppet Biden administration and military are running the show.
Good point.
“It will have a hard few months, but all the money in China will be flowing into the US like Niagra Falls.”
Private equity firms have been leaving China en masse since 2011. Southeast Asia and India have been the beneficiaries.
Eating the seed corn? Never a good idea...
Ohhh nooo, they’re going to rule the world.
or some such crappola.
fail dam fail.
I really wonder if we can play this debt game indefinitely. It might be possible if the rest of the world goes along. If it hasn’t come to an end now, will it ever?
I suppose a good WWIII might bring things to a head though.
Factories can be restarted.
—————-
Not really. At least not the way you think. The dirty little secret is that nearly all of China’s production facilities are quite modern and efficient using technology and automation. No way we could build back our factories in almost any real capacity. It is one world now when it comes to goods.
Those and your blood pressure and statin meds to name a couple. And of course vital drugs for surgery like heparin.
I understand that there has been a reduction in the factories by upwards of 95% of what used to be.
It will still be money flowing into the United States, if the Chinese government does fall.
Why hurt the land?
No FOOD and no HEAT would work much, MUCH better!
...or even a teddy...
No, the sooner it will take their greatest rival down. And they seem to have bought off enough of our overlords, going along with the Western globalists to date as part of that strategy, to succeed within that alliance.
If Michael Ledeen told me it was sunny I would pack an umbrella.
There are no reserves.
There is a new money system, never seen before, which allows unlimited spending (which the people want) without inflation or personal suffering, but by basing money on debt instead of metal, the (paper) wealth of the money creators grows and grows.
It grows so much that they are having trouble converting it into assets fast enough.
Obviously this is unsustainable, but it will not end with dollars in wheelbarrows or trillion dollar bills, it will end with overwhelming rural poverty, widespread drug addiction, Chinese strip-mining of our assets, and the retreat of the money creators to their castle-equivalents in New Zealand, the ones who escape hanging.
When I say reserves, I’m not talking about money. I’m talking about values and the consequences of the values. The values our grandparents had built up the country to the point where it had a lot of tolerance for bad policy.
But nothing lasts forever, when there is nothing but bad policy. Eventually, that bad policy will destroy a country.
I completely agree where we are going.
Or not
Your archaic hatred blinds you to the China reality
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