I want you to think of China as a Super Sized Lehman Brothers. I want you to appreciate that the world banks – are invested in syndicates in China debt. I want you to appreciate the few word our leaders never fully appreciated economically – COUNTER PARTY AGREEMENTS – or participations in DEBT that can sink the world system.

The BIG LIE is important than the BIG SHORT. The BIG LIE is that the banks are bankrupt – and they are reporting bad unpaying debt that will never not ever be repaid – as good loans on their books. When these LOANS are written down to fair market accounting all banks are broke now. However when CHINA COUNTER PARTY AGREEMENTS ARE ADDED IN the recession word goes out the window and the DEPRESSION word flies in. It is historic. It is inevitable. It never varies. When you spend more than you make you go broke.

How hard is this to understand. When a man and woman spend more than they make long enough they go broke. When a nation spends more than they make long enough they go broke – bankrupt. Depressions follow.

Now then back to CHINA the HUGE LARGEST NATIONAL DOMINOE that when it falls knocks all the other dominoes DOWN.

Lets take a look at the arithmetic as President Bill Clinton asks us to always do. Its just arithmetic he says – so lets do the math together.

China in THE FIRST quarter of this year beat all nations globally and rose its DEBT to stimulate its sinking economy – to 237% of its GNP. This means it is borrowing two and half times it GNP. Keep in MIND how MUCH SMALLER China is in its economy to the EU or to say the USA.

Now consider its total debts are now passing 25 TRILLION DOLLARS. This is not possible to sustain folks. It is not.

Further the speed of the debt raise – to stimulate a death spiral in their communist failed economic model because communism is a FAILED ECONOMIC “SYSTEM” and it always destroys its people in a ¬†betrayed trust regardless how well intended at the start – always – the system economically fails. If the debt rise is like a shuttle launch to orbit – fast and unrelenting – the swiftness and utter SUPER CRASH to follow is WORSE far WORSE as you use debt to kick the SUPER CRASH down the road. Now NOTHING not ANYTHING can stop the Super Crash and the China debt machine is on full red alert warp drive with no stop button. None.

Debt was bad at only 147% of GNP in 2007 but now at 237% of GNP a few years later – I mean economists – REALLY. I mean come on REALLY? China added 25 TRILLION in New Debt fastest pace level yet in just the first quarter in full PANIC CITY as they faced a SUPER CRASH in January – and used massive 25 trillion debt – think of TARP at 800 Billion and now think of CHINA as one quarter at 25 TRILLION DOLLARS US in their tiny economy many times less than the USA. You getting IT now?

100% of nations who have ramped up this debt speed – without exception have experienced a SUPER CRASH or a Japanese multi decade stagnation and no growth whatsoever. Either case ripples across the world with chilling SUPER CRASH TSUNAMI on world markets.

Meanwhile speculators fiddle while Rome ( the actual system ) burns. To the ground.

We’ll keep a light on for you. CEO SPACE May 15th in August gives you a circle of wagons with COOPERATIVE CEO COMMUNITY that will help you THE ENTREPRENEURS to prosper in any market. Salaried employees – not so much.


How hard is this?

Berny Dohrmann – reading your tea leaves for you

PS: Financial Stocks will crash the market this week – watch…..