Tag Archives: china bubble

Is China Ready for Its Own “Ukraine?”

China’s Taiwan Problem Just by its existence, a prosperous and technologically advanced Taiwan acts as a constraint on China’s potential domination of the Pacific region. The US alliance with Taiwan is an irritating thorn in China’s side. China is warning … Continue reading

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China’s Real Estate Embarrassment: A detailed Look

This video lays out the rapidly expanding problem in great and clear detail. If you are invested in any funds that hold international bonds, you owe it to yourself to watch this. A lot of people would be going to … Continue reading

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Global Economy Unsettling, Shifting Slowly

For decades, the global economy was growing on the backs of the BRICs — China, India, Russia, Brazil, etc. China, in particular, boosted the economies of raw material exporters around the world. High tech exporters such as Germany have also … Continue reading

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Will Skynet Terminators Speak Mandarin Chinese?

Can Communist China Build the End of the World? If Communist China wants to build the machines that bring about the end of the world, it must have abundant excess capital and it must generate (or steal) tremendous computer savvy. … Continue reading

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“a mirage in a desert that will soon entirely collapse”

… about 80% of Chinese people’s wealth is in the form of real estate, totaling over $65 trillion in value — almost twice the size of all G-7 economies combined. A significant slowdown could, therefore, have a substantial impact on … Continue reading

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China’s “S Curve” of Growth and Stagnation

Is China Already in Decline? The Chinese economy is not growing at 6.5 percent. It is probably growing by less than half of that. Not everyone agrees that the rate is that low, of course, but there is nonetheless a … Continue reading

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China Pursues Weapons with Abandon (Of the Economy)

Economy Before Military is a Better Rule to Follow Smarter rulers would have made certain of their economies before they put their nations in a military posture against the rest of the world. Scarcely a day goes by without hearing … Continue reading

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Empty Towers on Debt Mountains: China’s Vulnerability

Until now, China has managed to keep its huge raft of nonperforming debt afloat thanks to capital inflows, as successive waves of quantitative easing pushed dollars into the world. A tighter dollar would seem to make the bursting of China’s … Continue reading

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China’s Marshmallow Days

China Economic Blockbuster Pay no attention to the man behind the curtain __ The Wizard of Oz (1939) Despite appreciable slowing of China’s economic growth rates, the Middle Kingdom is riding a glittering wave of apparent wealth. The dragon maintains … Continue reading

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China Loses Market Share… And Workers

China is no longer the manufacturer of first resort for a growing number of western importers. China is losing market share to upstarts, newcomers, and old grizzled rivals such as Japan, Taiwan, and South Korea. China is losing market share … Continue reading

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China-Style Bridge Collapse in Florida Raises Questions

Something was clearly wrong with the bridge. An engineer for bridge contractor FIGG noticed cracks in the structure two days before the collapse. But his message was overlooked until the day after the collapse. This Kind of Thing is Expected … Continue reading

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Germany, China, and EU Very Worried by US Tax Reform

Germany, China, and EU Very Worried! The change in the capital investment rules gives US firms “a tremendous advantage,” [Gavin Ekins] said. “It’s a pro-capital formation tax bill and this is why other countries are so wary about what the … Continue reading

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What Really Scares China’s Leaders

Trump’s “Double Whammy” Spreads Fear in Beijing There has been a lot of nervous speculation in Beijing over the “single whammy,” Trump’s tax plan which reduces corporate taxes in the US, and makes it much easier for international companies to … Continue reading

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An Important Distinction: GDP Growth vs. Economic Growth

Real GDP Growth in China 3% or Less It is actually much worse than China expert Michael Pettis explains below: GDP growth is not the same as economic growth. Consider two factories that cost the same to build and operate. … Continue reading

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China’s Junk-Rated Future

One Belt One Road: Leap Into the Uncertain Future China’s Mr. Xi has attained the pinnacle of one-man power in The Middle Kingdom. In order to achieve his ambition to make China the leading global power in economic, political, and … Continue reading

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The Engineering Apocalypse: David Goldman “Spengler”

Update: Can the “Engineering Apocalypse” save China from its perfect storm? According to the South China Morning Post, the impending economic crisis is rooted in expansive fiscal policy, increased government spending, rising property values, extremely lax monetary policies, record-high bank … Continue reading

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China Preparing for Next Great Leap Forward?

Can China Reverse its Present Stall? China is experiencing an unexpected slowdown in its global ambitions. The very nature of economic growth in China has changed in an ominous way. A closer look at the fixed causes behind China’s unhealthy … Continue reading

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Astounding Ghost Towers of Shanghai

A dangerous proportion of China’s vaunted GDP is based upon capital misallocation, overproduction, and “broken window” style investments. The “demolish and build” cycle so prominent in many Chinese cities is only one case in point. The era of economic reform … Continue reading

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China’s Shaky Foundations: A World at Risk

Update: Undercover investigation reveals that despite government claims, China is digging a deeper hole for itself The world is watching China’s credit explosion, wondering how it will all end. It is a cold comfort that some of the same institutions … Continue reading

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Is China’s Goose Cooked? And Other Bedtime Stories

Economically, China needs a powerful recession to get rid of businesses being kept alive by loans. Politically, China can’t afford the cost of unemployment. The re-emergence of a dictatorship in China under President Xi Jinping should be understood in this … Continue reading

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China: One Yellow Brick Road Falling Behind Schedule

Once Referred to as the “One Belt One Road” (OBOR) Plan; Now More Properly Called the One Yellow Brick Road (OYBR) Plan One Yellow Brick Road (OYBR) Lost in the Poppyfields More than three years after Xi’s unveiling of the … Continue reading

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$1 Trillion Runs Away from China

China Suffered $1 Trillion Net Capital Outflow Reserves are Depleting Faster than Anticipated: Next Year Will be Worse Beijing has been engaging in dubious practices designed to hide the depletion of reserves caused by the support of the renminbi. For … Continue reading

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China’s Global Economic Leadership is a Fable

China is aging, wages are rising to uncompetitive levels, capital is fleeing, and the CCP is propping up a bubble economy that is losing ground. China’s economic importance [is] falling — not rising slowly, nor staying stable, but falling. …. … Continue reading

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Shoddy Chinese Steel: Australia the Latest Chump

Why Did South Australia’s Power System Collapse and Blackout? 80% of fabricated steel from China is shoddy and not safe and fails Australian standards…[WTIA] One of the reasons that South Australia suffered a recent grid collapse and blackout is the … Continue reading

Posted in China, Electrical Power Grid, Green Quagmire | Tagged | 2 Comments

Grand Triumphalism Against a Darker Background of Decline and Decay

High Speed Silk Road Routes to All of Asia and Europe Xi Jinping, 63, the president of China and general secretary of the Communist Party, wants to revive the myth and build a New Silk Road, in large parts along … Continue reading

Posted in China, Russia, Russian Decline | Tagged , | 15 Comments