WHAT DOES PANIC LOOK LIKE?
When China at the G 20 makes efforts to assure national leaders that the Chinese economy is fully OK… then we all KNOW things are not ok of course. And they are not.
China immediately after the G 20 meeting in panic obviously – yet once again – lowered the reserves their banks must retain in a plea to stimulate economic growth. The problem remains without ECONOMIC REFORMS to manage the trillions of bad debts in State Run Operations – SRO’s – there is no way NEW BAD DEBT to these centrally controlled failed enterprise can grow China back. The market knows this and so voted by again lowering the China equity markets where Asia has lost uncountable trillions since January. We have noted HARD CHINA landing into a Super Crash is coming in our opinion. We’ll see.
Banks now at precious 17% reserves lack any cushion to withstand a 2008 like CHINA melt down and they given the bad loan ratio are simply stand run bankruptcies waiting for the day of full retconning. In the end its simple economics. Central control does not work. Never has. Never will. Speaking historically and economically no politics implied.
The IMF and the World Bank both noted in economic speak that substantial risk to the world system remain and that the system remains vulnerable to another worse than 2008 shock if any number of things occur. They are all occurring at once.
The big risk is the DEBT BOMB we have reported on here. Debt is the problem. Without SYSTEMIC REGULATOR REFORM GLOBALLY the world financial system is sick and will go through life support which ends either in painful convulsions into a new world order or death of the patient the old world order. Which is historic.
The bright spot is Entrepreneurs which PROSPER in any market IF they have the right tools and resources to make the right decisions. Next week March 8th CEO SPACE will deliver to CEO’s attending world wide -in our BUSINESS GROWTH CONFERENCE the insulator to all this pain such that informed CEO’s will prosper in any future market.
Entrepreneurs are largely unaffected by these issues.
Stay Tuned. Asia was down Tuesday ( again ) as we predicted.
The worst is yet to come…everyone knows it now.
Berny Dohrmann Chairman – Keeping the Truth Candle on just for you
PS: China has few tools left and none to manage SUPER CRASH – none at all. Thats real panic. Why? Failed policy and vision – which may still yet arise.