CHINA IS COMMUNIST – CONTROLLED – MANIPULATED NON TRANSPARENT ECNOMY
China is a manipulated non transparent economy. Over decades China has stimulated economic growth by:
- Printing massive money inflating value and growth
- Massive debt to State Owned Enterprise or SEO
- Debt for real estate growth building cities what are vacant today
This non sustainable economic modeling, has resulted in the central government losing control of the economy. As this has taken place they have lost confidence, the critical factor, from investors and their supply chain of customers who are fleeing to other ASIAN markets. This is creating a China deflation much like Japan has sought to over come and failed to overcome over thirty years. The rise and fall of China is going to be a huge item for communism as a system. Communism is a failed economic social model. Freedoms and free markets are manipulated and the result ends in chaos – always unwanted but always predictable as economic systems fail.
In 2016 the day of DEBT RECKONING is upon the China economy as arrived. Trillions upon Trillions of bad debt from bankrupt daisy chain manufacturing real estate and infrastructure firms is soaring by the day. Entire factories are vacated over night. No one will ever repay the debt. The nation must print oceans of money to keep its bankrupt banks afloat. This by itself devalues currency first by 30% which is todays real value and then by 60%. This cheapens all China labor but will not restore confidence in their failed system model Buyers sensing the collapse will invest long term in other more stable ASIA supply lines, first due to quality and second do to stability and equally third do to ease of doing business outside the increasing hostile Chinese rule environment. China takes too long. It takes too much time. And China rips off IP versus protects IP.
Why would Apple remain one of Chinese largest employers when China permits tens of billions in Apple direct rip off’s versus putting those rip off players in PRISON protecting their own larger customer and investment partner ? From Wal Mart to Mac Donalds the hand writing is on all the walls as rip off’s rise and the TIME to do anything an profit just TAKES TOO LONG. TIME is the new currency of nations. Economic friendly environments are everywhere. What kind of market and real partner is Communist China? A seriously flawed economic system? Yes.
Faced with a full deflation and out of control debt IMPLOSION which is now unavoidable China does what? First they tell us everything is fine. That always means everything is worse than the market knows. Second they exercise policy error after policy error. Their head of security trading, who failed to moderate the huge Trillion Dollar crash Chinese Markets is finally sacked, far far too late way way to late for confidence – and to restore confidence, the new head of security trading is an agricultural minister. Can you imagine how this appointment of a loyal party hack to the enormous Chinese Security Debt Bomb global trading market – signals NO CONFIDENCE to world trading markets. A Rice Guy runs the security trading markets- already in crises as if HE UNDERSTANDS whats going to happen next. PO LEASE. This single policy error of appointing this HACK say instead of someone senior in China with a major brokerage firm like Morgan or a Wayne Gan a high expert in the industry, that would restore confidence, makes the China debt bomb all speed up. The run on the Chinese economy will now pick up.
- Trillions in customer buying will run for the hills – the hills are Vietnam to India.
- Trillions will bet short to Chinese currency and growth.
- Bankruptcies in China and bad debt will over whelm Communist planners next and they have been in overwhelm since 2015 – full on over whelm and it shows the market has lost ALL and ANY confidence in the leadership – the 12 the five the top.
- Massive money printing will continue but will fail to re-inflate the economy from Deflation and De-leveraging. The snow ball is rolling down an avalanche economic hill upon communist China correcting decades of abuse. It is economically inevitable.
- The currency will devalue first 30% and then 60% and real estate will crash and the market will hard land into depression. The world will spin and whobble as the terms wash to every single shore and it will happen so fast.
To offset these forces that are coming, the Communist will create WAR. Today the military selling for China is the only rising star – double five years ago – 100% growth. in a massive area. The military spending in China is rising by an astronomical level? The military sales are all to Asia the largest customer 1/3 of the buying being Pakistan. Pakistan is using billions in USA aide to buy China weapons. Why would the USA pay money to Pakistan without a Congressional safe guard all military purchases – all – are USA based with our money? How stupid are we? STUPID STUPID STUPID. Why is Asia arming at this fantastic rate. They KNOW and understand China is coming OUT to defocus attention on INTERNAL PAINS. As all nations do when they implode financially. It is pure history never varies.
Chinese populations are dumping their own currency and pouring into Dollars which they now hoard an save on the black market around the Communist rulers. 12% of China are now party members 88% are not party members. The run on the bank in China is so many trillions the nation can no longer manage the destruction of confidence – their population is running our of their phony paper money – the market is discounting the value a defect devaluation – customers are running to other markets forever – the river of new customers is now a trickle – the market is crashing in stocks and real estate next – the debt bomb will explode violently and soon and create a debt domino for years and years only moving snow ball to economic avalanche. The communist system is not nimble creative and fast enough to manage these financial inevitable and they will not except higher level advice from outside.
China will now move into regional war and military build up to take attention of the conditions set forth here – shedding any blame for creating a failed model and failed system – and now filling millions to retain power and avoid a SYSTEM TRANSITION aways from communism – a failed proven model for political systemic and economic systemic – no one has success with this model no one. The leadership will move to a war economy to re-inflate the economy. Either government spends, import buyers spend – consumers spend or all three spend – but when import buyers do not spend and consumers do not spend, government must spend. Trillions spent on internal economic growth have failed. The communist to not have entrepreneur laws that create rapid development of entrepreneur class. The barrier to entry precludes by systemic modeling rapid entrepreneur development sufficient to sustain rising internal consumption in communist systems. This change would be superior to war but the planners do not really KNOW how to make this change. We continue to advise and try and help as we are able to do so as the NUMBER ONE Entrepreneur Consultant to Nations in the world today. No one in China is listening.
My Famous father started training Chinese manufacturing process in the 1950’s with Chairman Mao adopting my father’s methods for TQM. I was raised with Chinese children in my home and we used to draw games with sticks as we spoke different languages. My respect and regard for the Chinese people and their leadership is high. In the SUPER CHANGE markets the policies of the revolution no longer keep pace with CURRENCY and remaining current on adaptability the national system requires. Massive rule of law changes are needed to revitalize the economy, reset the debt bomb, foster HYPER GROWTH for entrepreneur sector employment – while moderating military economics which only lead to war and ultimately a complete utter revolution in nation. Which would welcome avoiding for the peace of the people and leadership and the preservation of order.
Ultimately decisions are made – thumbs up or thumbs down by a small group of 12 at the top. Even then a team of five to seven make the execution policies. Well intended errors are not magnified against a series of error decisions. Confidence is a foundation that when cracks takes forever to rebuilt. Keeping and maintaining confidence is a bulk head asset for China. Without increasing transparency to markets in a digital age the ability of China to moderate the coming DEATH SPIRAL of the economy due to the debt bomb explosions taking place in 2016 is greater by far than all the terror threats combined together.
China’s Korea policy is going to back fire. Ethics and integrity in national affairs are no longer options. Appeasing rogue wicked leadership always creates more pain tomorrow than roping them in early. Cutting off the life line of money from China to Korea to assure they change policy direction is HEROIC leadership and would do much to restore confidence by itself. it would demonstrate a China citizenship leadership that transcends economic self interest in the short term.
Russia is not China’s friend. Russia is in its own melt down. The degree of this melt down places enormous pressure on the Russian Leadership to move forward into military expansion into ports to advance economic options from Syria to Greece. Watch out Nato. Russia is also vastly increasing its military economy as is China. They compete in doing this effort. Ultimately the problems belong to all of us and working with China and with Russia is the way into the future. Cooperation is the only solution. Competition leads to world war and massive destructions. No one will win. No one. No peoples. No nation. No system. No economy. The US is actually China’s friend and wants none of this to happen. We have warned and suggested solutions. But the leaders do not trust us and Russia rattles that trust as do others. While we disagree on issues we have much more in common than apart.
The banks in bankrupt and the investment banks are bankrupt. The real estate firms are bankrupt. The debt bomb is exploding and can not be repaid. This debt in China and Russia – bad debt – must work its way out of the system. The state can not save the TOO BIG TO JAIL. So how does this play out? Communist leadership can not manage of fix these forces now released fully.
Decisions. Are the asset of solution.
Making right decisions will go a long way to moderate the pain.
Making wrong decisions as they all are doing now accelerates the pain.
The world needs to invest cooperatively and collectively in taking off financial masks, as you can not wash economic feet with socks still on. You must in private non public conclaves develop a missing process to reset the entire world economy.
We continue to advocate for the one solution:
- A three year economic now political – legal and economic delegate ECONOMIC CONSTITUTIONAL CONGRESS over a three year mission on the Big Island of Hawaii in the Aloha state center to the G 100 hosting the congress.
- All G 100 ratify a new GLOBAL ECONOMIC CONSTITUTION setting up the largest world wide regulatory re-think and new frame work since digital trading began or the past 100 years. Trade rules include equal opportunity for everyone.
- Debt solutions bifurcate into resetting sovereign nation and infrastructure growth demands into a new class of G 100 SUPER BONDS featuring TIME – 200 year maturities – to assure long term growth for all. Bad debt is written off over 50 years of TIME by mutual consent systemically. Debt holders write down assets over TIME versus crashing instantly. Time heals all financial wounds.
The FRESH ECONOMIC IP introduced here and stated so much more in detail in my book REDEMPTION THE COOPERATION REVOLUTION now being read by economist heads of state an government planners everywhere – suggests the fresh economic model to bind the world into cooperation versus competition.
We do not see this cooperation rising today.
The result is prediction of repeat 5000 years of economic history books:
- Wealth consolidates 99% own more than 1% ( 2000 )
- This destabilizes system into melt down in markets globally ( 2008 )
- Trade war results through price currency commodity and tariff manipulations. ( 2008 to 2016 )
- Contagion event triggers market SUPER CRASH – 6000 dow credit stops
- World War resets the economic landscape
This five to dive model has never changed since ROME. Why would any historical economically not chose a better way? Leaders are not economists. Most economists are theory driven in 50 year exercises of ignorance to history economically. The economic historians make errors as well. Desperate to break pattern the Fed’s bailed out TOO BIG TO JAIL and in doing so did nothing. Tens of Trillions went into no circulation, wild speculation creating a global casino capitalism that has no value added to jobs plant investment expansion and innovation. The can was kicked down the road to be sure. The Feds created a new landscape the world has never seen. A Debt Speculation bomb with digital trading where all rules are LOCAL only and all grades are in the unregulated crowd at 50 to 1 leverage never seen in economic history. This means all nations are fully bankrupt and hostage to the casino.
This system can only implode without a GLOBAL G 100 REGULATORY RE THINK. Speculation must be made universally criminal forcing capital into investment and global growth – reinflating the world markets under new ECONOMIC CONSTITUTIONAL regulations yet to be set.
Lacking this step the forces at play economically today create a speed from world peace into world war that may stun even the most pessimistic.
The world leaders are playing Russian Roulette with a Loaded fifty automatic rapid fire weapon pointed at all of our heads collectively and firing repeatedly while dining and partying – fiddling while Rome Burns.
Its a mess.
Without a NEW GAME PLAN the world sinks. Read investment banker Kevin FREEMANS GAME PLAN – as he points out your nations have ZERO GAME PLAN so you better make your own and he tells you HOW to DO THAT in simple clear terms. GAME PLAN get five and leave a comment – he’s a dear friend and on faculty at CEO SPACE.
Join us March 6th and make your OWN GAME PLAN folks.
CEO SPACE is the future a safe harbor for all the financial storms developing. Within a larger cooperative entrepreneur trading community that is global, Forbes ranked # 1 – you can March 6th – remain behind a seawall and prosper in any market including the coming war markets.
There is safety in numbers folks. CEO’s running business need to come together as never before to forge your GAME PLAN and believe ME
You live on BORROWED TIME.
Berny Dohrmann – Chairman CEO SPACE INTERNATIONAL— February 24, 2016