Wednesday, November 24, 2010

China’s Inflation (Coming Collapse) Volcano

I think it’s time for a reminder post given the level of insanity we are again starting to see in the mind-controlled public forum.  We have been remarking since starting this blog that China is the largest economic bubble the world has ever seen.   I have written here and elsewhere for the better part of a decade that this has been coming.   All along the way, everyone with a mainstream view rejected our position on China’s coming doom until some recent contrarians have identified China’s real estate bubble.  And every single person within the investment community in the U.S. at one time or another has either pumped this lie wittingly or unwittingly or bought into it.  Every single person.    China is not a real estate bubble as many have labeled it in the last year.  It is a capital bubble.  And for that, its outcome with shake the world to its very core and expose the idiocy of the bureaucrats who have put our society at risk for their personal gain.

We wrote that China’s economy was in the process of melting up before the collapse in 2008 and came close to nailing the top of the Shanghai Index collapse.  Ditto with the associated commodities collapse.  We have written of coming chaos in China and the potential for armed conflict and a collapse in its GDP by up to 50%.  We have remarked many times that China is financially broke but doesn’t realize it while others babble endlessly about China’s wealth.  And we have remarked its banking system is in shambles.   We have written that the associated con game about the commodities supercycle perpetuated by Wall Street is meant to pile the investing public into commodities and so is the associated Peak Oil blabber and anthropogenic global warming ideology.  All foundational to manipulating prices and policies.  They are religious ideology.  We even wrote that China’s automobile production boom, reported so positively, post the 2008 global collapse was a sign its economy was in its final phase before collapse as business investment was no longer the driving factor in its growth.  We have written of the coming brutal bullwhip effect on China’s economy.   We have written of coming supply chain shocks in the global economy as chaos unfolds.  We have written that the largest multinational firms represent enormous risks as their investments in China and other unstable societies are eventually embroiled in chaos.  We have written that the gold bulls who believe demand from China will fuel future growth for the shiny metal will more than likely be met with China as a seller of gold as its crisis is exposed and they are forced to liquidate their positions to raise money.   We have said the yuan is headed down and not up as every single financial person has expected including President Obama, Treasury Secretary Geithner and other clueless U.S. government bureaucrats who perpetuate this insanity.   We ridiculed economic idiots like Thomas Friedman who top-ticked globalization and the China con game within the decade for his ridiculous best-selling book The World is Flat and Jim Rogers for top-ticking the China enthusiasm bubble by denouncing America and moving there right before China’s stock market bubble popped in 2008 and then holding onto China’s stocks through their collapse.  We’ve ridiculed the Wall Street liars for their incessant pumping of the China and Asian century and on and on and on and on.  If there is a topic to be written of with regards to China’s economy, we have likely covered it over the years.  All while the world was joyously in love with the miracle-less China miracle.   Our positions have never been mainstream because the herd on Wall Street is terribly wrong and systemically incompetent.  Even today, I have not read a single credible economic explanation of what is going on in the world today.

The U.S. is in serious trouble but we can fix what ails us with strong leadership seeking to restore democracy, the primacy of We The People and economic self-determination to our nation.  People who write that the U.S.’s future is doomed because of debt or because we must issue new debt to create more money or similar views are beholden to limited thinking and a marginal understanding of economics.  And this ridiculous view of totaling the next fifty years of Social Security liabilities against today’s income are substantially without any mathematical merit as we discussed years ago.  If I am 25 years old and have future liabilities of $2 million over a life time and current income of $40,000, what does that tell me?  That I must default or declare bankruptcy?  Nonsense.   These are scare tactics used by religious ideologues who wish to continue dismantling our rule of law and their useful idiots in society.  Adjustments need to be made because our system has been corrupted over decades but this need not be the end or imminent collapse of our society or any government programs society deems necessary to provide dignity to our citizens. 

As we have remarked, the U.S. is  unlikely to fix our problems until we have a major crisis or worse because of the elitist class and their inability to do anything other than protect their own corrupt self-interest, but our problems are political in nature.  Purely political.   They are completely self-inflicted by  elitist idiots.  We need political will with moral clarity not provided by any particular political party but instead from leaders willing to rise above the corruption of politics and political parties.   By leaders willing to do the will of what is righteous and good within the framework of the rule of law.  China, on the other hand, had its fate sealed long ago because of the nature of its bubble.  There is no way out.     

Realizing the U.S. was and is in a debt bubble or a housing bubble was easy.  That was predictable for those who think with their eyes.  Deciphering beyond that requires that people really understand economics and monetary policy.   The future world is going to be much different than the future anticipated by those who think with their eyes.  The reality is that neither bulls nor bears generally have more than a cursory grasp of what they are talking about.    The herd is almost always wrong in the end regardless of the positions they espouse.  All of our posts excoriating the supposedly brilliant pied piper Harvard MBAs, Wall Street financial gods and Ivy League-educated economists and their overwhelming bullishness before the 2008 collapse, while we actually wrote that liquidity shocks and a credit crunch were coming, should provide proof enough of that.  Who am I but a nobody in a world of experts yet those words were not uttered anywhere else.  This is one of the fundamental problems with our society.  A handful of supposed, and I do mean supposed, experts dominate the agenda and rather than thinking for themselves, everyone else piles on.  The positions become ideological and limited in their scope of intelligence and knowledge because they are religious battles limited to the abilities of those dominating the debate.   Most bears fit this description just as clearly as most of the status quo they are fighting.   This is not democracy or reasoned discourse.  There is very little search for truth or what is is generally incomplete.      

We continue to watch as the world of the bureaucrat and the state develops in all of its grandeur of Orwellian lunacy.

Title link here.

posted by TimingLogic at 8:50 AM

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