China’s Dumbed-Down, Brutally-Repressive, Central-Planning, Communist Leadership Warns Of Coming Serious Economic Challenges
It was just a few years ago that China was considered invincible by every single political, economic and financial talking head who could grab a microphone. Resisting that type of meritless, dumbed-down groupthink was and remains an daunting task. It is pervasive in a world where truth has been replaced by corporate and corporate state propaganda. How many U.S. bears loved China? Over the last decade? Some still do. Peter Schiff comes to mind as a loud China bull and U.S. bear. He was just one of countless. Everyone in the economics, political and financial community in the U.S. was bullish on China at some point. The gold bulls thought (and still think) China’s central planners was(is) going to save them; something I have mocked repeatedly. Or, even more ludicrous, there are many who believed the yuan was going to become the world’s reserve currency. Hahaha. Whatever. Where do people get this stuff? I doubt the future will even have a reserve currency as noted on here many times. The concept of a reserve currency is determined only through the barrel of a gun. It is a control mechanism used to loot the world. I even remember pointing out some economics savant wrote in a major “think tank” periodical that China would soon enough be more than a $200 trillion economy. Does anyone who identifies with the ruling class or considers themselves an authority on money or economics actually have any idea what they are doing?
Half a dozen years ago I even remember Robert Reich wrote on his blog “The people managing China's economy (I'm not talking about the politicians but about the financial and economic wizards who are actually making decisions about money supply, capital markets, and the like) are extremely good. They match the best economic minds anywhere in the world. In other words, they know what they're doing.” Hahahaha. Okay, I picked myself up from the floor. We all make mistakes in our lives and I mean no disrespect but I will never forget that post. It was close to the very time I was writing that China’s stock market was going to collapse. Which it promptly did.
I love Robert as an authentic human being but I nudged him with some comments on his blog at that time that he was smoking something and that China was run by dunces. Of course, so too is the United States. Which is why no human being should have any control over the economic or social freedoms or determinism of another human being. Only law. Only law based on natural rights. Allowing class-based, private, profit-driven criminals to send our capital to China or anywhere else is not consistent with natural rights. It is a crime against humanity perpetuated by the political class toadies. This crisis in China was preordained long ago because those who created it are pathological.
My point with citing this is that it is one of endless examples of “No one could have seen it coming” that is the prevalent false meme with the endless consequences of political class corruption and meddling with our freedoms. Even the very people who were responsible for creating the monster of globalization through the deregulation of private capital’s national borders, the Clinton administration on which Reich served, literally had no idea of the future consequences their extremely misguided actions would create. They still don’t. Which, by the way, is why the central planning politicians need to get out of our lives and out of the economy. And I do mean get the hell out. Maybe more importantly, we need to rid ourselves of the concept of a political class which subverts and destroys self-rule, economic determinism, freedom and democracy.
People are still missing what is going on in China. Yes, we obviously see copper and industrial metals are collapsing. That was predictable as I noted the literal implosion of copper imports into China last year and how corporations were literally making up export numbers in an attempt to get out of the yuan and into dollars. Anyone who still has faith in the Chinese central planners are kidding themselves. The premiere of China’s communist party is almost certainly just another in a long line of incompetent bureaucrats who will be overwhelmed by the unintended outcomes they have created for the people of China.
The issue for China is not debt or credit as the communist party premiere pronounces and as others believe. Certainly bad debt is and has been an issue for well more than a decade. And, all that bad debt has done is continue to swell. The real issue as noted on here many times over the years is that China is in a massive capital bubble. That bubble has already popped. It popped some years ago. So, in its wake we have seen a resultant massive debt/credit bubble. Unlike a debt/ credit bubbles that can be often ameliorated through debt forgiveness (not likely in a system of excruciating state violence) or isolating toxic or bad debts that the investor class can they snap up on the cheap, (which China will likely attempt to undertake at some point to please their plundering American masters) a capital bubble has no solution.
The new premiere of China sees serious challenges but I doubt he has any idea what the central planners are really in for. That could include losing complete control and seeing their wildly corrupt government sacked as noted on here many times over the years. China’s crisis will be colossal and so will be unemployment that even Marc Faber discounted in a recent interview on CNBC Asia. I have talked about this many times over the years. That includes my previous remarks over the last half dozen years on the coming bullwhip shocks that will devastate capital employment in China. There is no precedence for anything like China’s mess. Ever in human history. Its size and scope is massive. When it reveals itself in its full glory, it will make 2008 look like tea and crumpets with the queen mutha. I’ll fill in more of the blanks I skipped over in past years in coming months. The horror of what is to eventually come for China will become more clear.