Last week and again this week the IMF has waved its large finger at China. This wagging finger did not suggest – I DID NOT HAVE SEX WITH “THAT” WOMAN like the Clinton finger to a billion peeps. Nope. It was a strong finger though.

It stated that the CHINA DEBT PROBLEM reported for 9 months on this blog site – just like we reported SUB PRIME and the Bank Melt Down before anyone was wise up to it – in clear financial speak said:

  1. The debt strategy of China is NOT working.
  2. Piling on more and more debt will become a risk to the entire world system and order.
  3. That time is NOW.
  4. A massive new strategy must be created
  5. China’s policies are FAILING and have failed.

The IMF must have the same data I am looking at. The issue is counter party agreements, just as it was in Lehman and Bear Sterns. The issue is that when these giants go down – then the ripple waves bankrupt everyone. Only through funny money – printing enormous FREE MONEY and via funny accounting – ALLOWING BOOKS TO BE BOOKED WHERE YOU AND I WOULD GO TO PRISON FOR BOOKS LIKE THAT – THE LEGAL THIEVES HAVE “EXEMPTIONS” so they get to lie on their books and we do not get to lie on ours.

So in summary – China has 100 Trillion of Non Performing debt. The EU must have a 1.7 growth rate for FIVE YEARS with no financial blip or Spain, Italy, Portugal – well 14 of those at 167% of GNP borrowing for 30 years – are BANKRUPT. They are paying out too much in pensions and social services and there is NO MONEY to make those payments as in NONE. The bad debts that are piling up on these national banks is beyond any current plan to repay it. We have put for the ONE and the ONLY fresh ECONOMIC Idea that will work – as in WILL WORK – on this blog – but hey – no one listens in politics. Inspired leadership and real courage would be required to DO ANYTHING. Nothing happens until YOU DO SOMETHING.

So, the Debt is just soaring. China has added 9 Trillion this year and is skyrocketing up as we read these words. Think of TARP at 800 Billion. China makes Tarp a cake walk and thats just months of the NEW YEAR their machine can’t absorb this. They have around 2 trillion if that left in foreign reserves – their currency is worthless really- their trade account is dying because there is a RUN ON CHINA.

The RUN ON CHINA is all sectors all at once. Manufacturing is moving FOREVER to other areas in India and never not ever coming back. The demand for what they used to export is falling dramatically from IPHONES to hair combs – its OVER CHINA. No one trusts you. No one can rely on your quality. No one can do “Easy PROFITABLE Business” in China and China you do not respect your own customers or even begin to KNOW how to KEEP them with world class service.

Money is running out of investment and markets by trillions not billions and it is NOT COMING BACK anytime soon. So how does CHINA react? They massively print money to prop up their dying currency ( I Pity anyone holding China stocks or currency or real estate ).

The bubble in China is not going to come down easy. The crash is going to be so dramatic so hard that it will shake the foundations of the world system. Who says – THE IMF says last week and this week. So you are not paying attention to these tea leaves. Ok thats on YOU.

What should you do?

All spelled out here and no where else. Invest in your own business – invest in small business – invest in DIVERSIFIED INSURANCE investing the ONLY SAFE HARBOR in our opinion and invest to attend CEO SPACE May 17th so that you KNOW WHAT TO DO – register on line. Its a life insurance for your own LIFESTYLE. Use a tax dollar and protect EVERYTHING is what I would DO …but thats my opinion.

You keep yours though – keep yours.

Berny Dohrmann – Keeping a light on for you