SO THE BIG MEETING IN CHINA IS GOING ON NOW
The central planners face a problem. Corruption is being used to VET anti-party business owners out. A million have moved to prison. Party officials are LEGALLY stealing their venture wealth – LEGAL THEFT institutionalized by a central communist nation – always the end gasp as in Russia. Economically speaking not politically.
The party has pledged to end the trillion paid to state-run organizations SRO’s – of which there are thousands – many shut down but they still pay employees and loans they are never repaying are held as GOOD ASSETS by the banks – say 100 trillion worth of bad non-performing loans. They are borrowing 300 dollars for every dollar the nation earns every year. They have gone from 25% annual GNP to 5% plus – and that number many experts feel is a lie. The graph is ten years pure down. Again economically not politically a crash of their GNP like Russia from 5.1 trillion to 1.3 trillion in only five years – a CRASH of their economics to the world. Japan is doing so much better folks and we believe is the # 2 economy now not CHINA. Japan is a RULE OF LAW nation. Is why.
Millions have left cities back to rural towns with no jobs. The planners this week are more worried about SOCIAL UNREST with 87% no longer party members than they are the economic short term. The once growing middle class can not support the economy of a crash in manufacturing which is taking place in the bubble. Commodity Bubbles. Real Estate bubbles. Financial market bubbles. How long can you spend 300 to 1 on your income each year? Economically a VERY HARD CRASH is the only outcome folks.
The IMF accepting China currency was a crime and a political move. Terrible for the world. No one is doing anything about that crime.
Watch how this all plays out. And we love the Chinese people and wish them a reform into COOPERATIVE CAPITALISM. Their planners do NOT KNOW HOW TO DO THAT. We are going to try and help them to do it.
Meanwhile, their growth plan for decades has come at a social cost no one can spend out of. 80% of rural water in their populated NORTHEAST provinces is UNSAFE FOR HUMAN CONSUMPTION. But the communist leadership still insists the urban water being supplied is SAFE. IT IS NOT SAFE. It is killing them.
Half the land is contaminated and is not safe to build on or habitat. It will take trillions and 100 years to clean this pollution level up.
The air is so unsafe that it is reducing life expectancy and creating health care costs that lead the entire world. The aging population – highest of all nations – is going to die because they can’t breath fresh healthy air.
All this is going to become increasingly KNOWN to the masses of the population. What will happen when they view their leadership as a failed economic model – and a model that is a leadership of SHAME leading them into the unsustainable environments and health costs that crash the nation for generations financially?
We would not wish this INCONVIENT TRUTH on any people.
Meanwhile, Russia and China do the one thing they can – reach out to other nations to move their models into Africa, South America, and developing nations – as their wealth is now “deal making” with other nations to secure their wealth and populations. They have five women for every male in child age rearing and the hope of their people with the lack of worker replacements – is EXPORTING humans. Economically speaking not politically.
Personally, as an investment banker economist I would remove any bets investments or long-term plays on CHINA. Those who bet on China are risking a revolution and potential financial setbacks. Historically speaking.
We continue to watch for you by telling the truth faster.
Berny Dohrmann – China, as we have said, is TOAST economically
PS: As China leadership and Putin does not tell the truth – and favors Philippine leadership we suggested were breaking humanitarian laws by just killing 2900 drug dealers without trial or due process – says it all really. No?