The IMF has warned the world that CHINA debt policy is the single largest threat to the entire world financial system. Why? Data is why:

  1. China has for more than ten years borrowed 300% more than it earns leading the DEBT imbalance to sustain its phony communist economic model which is a disaster waiting to happen and needs massive reforms.
  2. China is taking borrowed money and re-lending it – world wide to open gateways to influence for trade and minerals. A huge % of those loans economists and me concur will never not ever be repaid to China. Their leaders are betting the world will not let their capitalistic system go down – but they are wrong – they will not bail China out of this policy error and mess economically. Big error in policy.
  3. Pakistan has ripped the USA off for so many 100’s of billions we can no longer count it all and now China has bonds that Pakistan can not pay off when due and the IMF ( China’s phone currency was included in 2017 as a basket reserve currency a terrible IMF blunder in policy ) and CHINA is seeking the IMF to lend billions to Pakistan in new largely USA tax payer loans funding the IMF – or grants – to Pakistan a nuke nation.
  4. Today the White House spoke out as to how not amused they are with this fully dangerous policy.
  5. This type of policy needs integration and coordination with the USA and China and Russia on nuke nations that are about to go rogue depending on the elections. The theft of America wealth into unfriendly Pakistan who secretly protected Bin Laden – is one model of WHY NOT.

China some estimate is facing 100 trillion of bad debt that is kept on communist SRO’s nation and bank balance sheet as fully good assets and performing. As a SUPER DEBT BUBBLE IN CHINA BURSTS in DEFAULT CASCADES worse by far than contagion and with AI instant global and without historic precedent one worries.

Why? The counter party agreements to those bad loans are in many instances effecting all banks all financial institutions and all nations. The entire system could freeze up and fast in a DEFAULT unwanted unwinding of the Chinese SUPER BUBBLE and there is NO END IN SIGHT. Record lending and borrowing by China set even new record 2018 highs as if the IMF the World Bank and all central banks advising them were spit into the wind.

The way forward is SUPER BOND THEORY set forth if you scroll or search on this blog with leading bond law firm for sovereigns Hughs and Hubbard. The element of TIME in Super Bonds is the missing asset to reset  the SUPER DEBT BUBBLE in China and frankly we know of no other options by the new class of sovereign bonds Hughs and Hubbard can craft into market reality for China and other nations like Italy and debt no way out sovereigns. With Super Bonds there is a way out.

So on one side this week Trump teams are talking and working with China on details of new world box top rules that will include Pakistan. Given our investments include a great many deaths to protect a nation ( Pakistan ) almost as large as the USA and with 300 million in population as large as the USA and about to move into SUPER CRASH and world depression in their orbits – if nothing changes fiscally. The corruption in this Nuke nation threatens primarily India and it is a huge and rising threat as India is prosperous ( within its own debt super bubbles ) and Pakistan is ending its SUPER BUBBLE STRETCH POINT.

The IMF is making a choice – risk DEBT SUPER BUBBLE BURST AND CASCADE or insert billions to move time on this reality without SUPER BONDS backwards in time.

China needs SUPER BONDS where yesterday is already to late – XI phone your buddy Roel Campos and explore ( just explore privately )  on a short phone call a way forward for you and your communities. The world needs a way forward. A fresh new option – they have that option if world leaders will explore just explore a solution.

Everyone is watching the DC trail and Stormy Daniels in chat rooms.

The reality is in the details of the IMF and the China and Pakistan super debt bubbles with defaults to China in the wind from Pakistan – it is so serious and the USA weighed in suggesting to the IMF better not use our money for this policy as consequence can effect IMF funding. Given who is boss today.

So the chips are on the table.

Trump has a full house.

Pakistan has no matching cards of suits and China holds two two’s.

As I keep singing – you got to know when to hold them and you got to know when to fold them as economics is in charge in the end and errors in economics can not be remedied by more bad politics. Talks is not going to fix this.

Why SUPER BONDS to reset debt? Here are two reasons of data and fact:

  1. In a shooting war China loses and they know that
  2. In a Digital economic war China loses and they are seeing that now.

Talks is not going to fix this. New BOX TOP RULES by the grown ups – Russia – EU – UK – China – Japan – and USA can and will fix it if we cooperate.

If we compete we perish.

If we cooperate we thrive.

Sanity versus insanity some of the grown ups have to review the hard data and make a real choice here. Systems can replace trust as trust is restored with integrity which is the only DNA of Cooperation.

The world is not suffering from a crises of leadership.

The world is suffering from a crises of integrity.

Berny Dohrmann – Nukes is what is GOING ON OUT THERE AND ITS ESCALATING

PS: There is too much blame not to leave it all behind – we all need to raise the INTEGRITY BAR and move into the future together…..and you know what. It is possible to have a fresh start from North Korea starting a way forward to all of the players.