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De Omnibus Dubitandum - Lux Veritas

Tuesday, July 12, 2016

China’s economic moment

Author: Editors, East Asia Forum  
Outside China there has been growing anxiety about where the country might go next, where its economic trajectory is headed, what’s happening under Xi to its political system, and how its economic power will be projected politically.
These anxieties have four main sources.
 
China’s international economic presence suddenly became big; people all around the world have to deal with the China factor day-by-day because the scale of Chinese economic activity means that it permeates business in even the most remote corners of the world. Whether people know very much about China or not, Chinese goods, Chinese investment, Chinese stock markets and Chinese policy strategies are suddenly visible and have impact.......To Read More....

My Take - Maybe I missed it, but  there are some things I think are left out of this article.  China's banking system is in trouble and the numbers are fraudulent, and one of the reasons why is because they're economy has been structured for full employment, not profitability, and the banks keep loaning money to companies that should have been allowed to go out of business.  But the banks of China are in fact part of the government, and are required to meet the demands of China's socialist masters, and  they're required to ignore the normal concepts of profit and loss.  It's not in any way a legitimate capitalist system.  Which is one reason their banking system is amazingly fragile. 

They're a huge country with over a billion people and most of them live in an area no bigger than the land mass East of the Mississippi River, and they're mostly ethnic Han.  The rest of the country is either desert or mountains.  And the people who live in those areas aren't Han - they hate the Han, and think the central government is an illigitimate entity. 

Their economy is based exports.  If at any time the world's economy tanks - so does China - and it will go down fast and far. 

They're wasting massive amounts of money their military, including aircraft carriers in an attempt to create a political and economic hegemony in South East Asia.  All they've succeeded in doing is making enemies of  Japan, Phillipines and the rest of South East Asia.  China's elite have in the past fled with billions in looted money for a good reason....China is a disaster waiting to happen.

Everything else is horsepucky! 

 

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