China's Broke, and Getting Broker

By Rich Kozlovich

I hope those who've been reading P&D over the years will recognize this is what I've been saying for years.  China's economy is smoke and mirrors.   China isn't a natural capital generating nation, and their "investments" to emerging economies were nothing more than scams to control them and to undermine the United States in every possible way.  

China's broke, and getting more broke by the day with Xi and his abandonment of any capitalist schemes they embraced in the past, and replacing anything that resembled capitalism with a total embrace of Maoist/Marxist economics. 

I've said this for years, and now it's becoming obvious to the most casual observer.  I knew this was going to be the outcome for one simple reason.  History!  Central economic planning always fails eventually, that's history and that history is incontestable.  Also, I knew their economic planning was based on full employment, not profitability.  Not profits, eventually no economy.   And the bug man was right.  Imagine that.

I published this on October 15, 2019, China Seeks To Mollify Hong Kong With Bread, Circuses, regarding the protests in Hong Kong over their draconian rules, and added My Take saying: 

Make no mistake, the communist government in Beijing is going to use force to bring this to a halt.  They like the capital Hong Kong brings in, but they want to control everyone the way they do on the mainland also.  It's a philosophical imperative for all socialists.

They don't dare give in to the protesters because if they do this will spread though out China.  First thing you know the young in the other large cities will start to rebel and make demands.  If they allow that it won't be long before the communists are thrown out, and be assured, the communists understand that. 

They will perpetrate whatever violence is necessary to bring Hong Kong under control because communists care more about being in control than they do the good of the people.  That's history, and that history is incontestable.

Having said that.  China's economy is in danger.  Their banking system is a mess and the numbers they present are fraudulent, all sanctioned by the government, corruption is rampant, and their military spending is outrageous.  The ethnic Han that make up most of the population of China are not loved by the other ethnic groups, and those groups believe the government is illegitimate.  China isn't a homogeneous nation.  Of that massive two plus billion population most of them live in an area no larger than the land mass East of the Mississippi River in America.  The rest of China is either too arid or too mountainous to be all that productive, and the populations there hate the central government and are poor.

As some point China's economy is going to collapse.  They can feed themselves, and they can defend themselves, but they can't fuel themselves and they can't create their own internal market because China isn't a natural capital generating nation since it's economy is being controlled by the central government.  Therefore their economy is an export economy, and any downturn will crush them. 

They're now spending huge amounts of money they don't have on their military in an attempt to impose an economic hegemony over the rest of Southeast Asia.  The belt and road initiative is part of that, but countries that signed on are now having misgivings, and rightly so. 

Communists are bullies and it's becoming obvious that intuitive is to benefit China at the expense of everyone else. 

Now the protests are spreading, and doing so violently over these insane covid lockdowns in China that is costing the lives of many, including children.  What happens when China's "Brokeness" reaches it's Apex?