November 28, 2021

Broken China

Lance Sjogren

Remember in the 1980s when Japan was looking like it was going to dominate the global economy? And then it had a crash. Same thing's happening with China, according to Kathie Wood. I believe she is right.

I remember when the Japanese stock market was like PE ratios of 100 and I just couldn't understand how stock prices could be so high. It seemed like Japan was such an economic wizard that it defied any traditional analysis. Well, turns out that was completely wrong.

In the case of China, the bubble is real estate. Apartments in major cities sell at 50 times average annual income. Remember how they always used to say you can afford a home about 2 times your annual income. Well in China they cost 50 times. Where'd the money come from to get them that high? Everyone in a family gathers up their savings and pools it all to buy an apartment as an investment. Because it's the only investment they trust. They have put all their savings in real estate. A lot of the apartments are empty. An estimated 65 million. There are "ghost cities" with high rise housing for tens of thousands of people that are completely empty. A lot of the apartments are shoddily built, sitting idle, and deteriorating. Many were bought before they were even built. With the real estate companies going bankrupt, those might never get completed.

We have had some nasty financial bubbles in our country: The tech wreck of 2000. The real estate wreck of 2008. We may have another bubble right now. I don't believe any of ours have been of the magnitude of the Japanese bubble or the Chinese bubble, however. We've never had our stock market as high as the Japanese had, and we've never had our real estate market anywhere close as high as the Chinese market is today. Even in the 2008 bubble.

Because China's economy is so large today and involves so much international trade, How their economy does will spill over somewhat to the rest of the world. Plus, there's somewhat of a bubble in other parts of the world, for example the US. However, I think our recession will be far less severe than what China is headed for.

Hang onto your hat it is going to be a wild ride.

Tim adds:

I've been saying China is a paper tiger for years. I stick by that.

Their economy has only been successful because we voluntarily handicapped our own and they could provide things we chose to stop making or doing for less. It was artificial and inevitably someone was going to knock the stool out from under them. Once that happened the whole house of cards would fall.

It is worrisome though, because China sees this as their time and they will be horribly unpleaasant in their death throes - and with their nukes and biologicial weapons...

I don't think they are going down for the same reason that the Japanese economy tanked. Japan tanked because they adopted American-style Keynsian economic policies. They did so when they were far too dependent on exports. If you want to see why the globalist notion of "free trade" which is not really free trade but rather sucker trade fails one need but look at the demise of Japan as an economic power. Japan depended entirely on what foreigners would give them. When push came to shove they found out others could do the same.

China has the same problem to a degree, but less so than Japan. However, China is still a communist country. They are engaging in the same strategy employed by Lenin in the Soviet Union, a New Economic Program that allows some companies not officially owned by the government - just by members of the government. It is fascism, but it is in the service of marxism. Lenin did the same thing after nationalizing industry failed.

This means Chinese companies have all the faults of the standard communist model. They have, until now, been able to do things cheaper (thanks to low wages and compulsory employment and bad working conditions) but as soon as that shifts Humpty Dumpty will crack and all the king's horses and all the king's men won't be able to put China back together again.

Serious competition will ruin them. That was why Trump presented such a threat; he wanted to compete. Of course now with China Joe in office they have a breather, but only for a while. Their economy is fundamentally flawed.

Posted by: Timothy Birdnow at 11:57 AM | Comments (24) | Add Comment
Post contains 762 words, total size 5 kb.

1 A commitment of appreciation is all together for the reliably steady exercise. Achieves the best outcome! The methodology worked for me because of the space people for the system. <a href="">skylight paycards</a>

Posted by: skylightpaycard activate at December 16, 2021 04:40 AM (mE5CY)

2 A commitment of appreciation is all together for the reliably steady exercise. Achieves the best outcome! The methodology worked for me because of the space people for the system.

Posted by: skylightpaycard activate at December 16, 2021 04:41 AM (mE5CY)

Posted by: yasmine m mohamed at March 16, 2022 11:58 PM (W5Njw)

4 Thanks .

Posted by: TellTims Survey at August 03, 2022 05:28 AM (eNJTR)

5 <a href="" rel=dofollow"> HORSE TRAILERS FOR SALE NEAR ME </a> <a href="" rel=dofollow"> 2 Horse Trailer For Sale </a> <a href="" rel=dofollow"> HORSE TRAILER DEALERS NEAR ME </a> <a href="" rel=dofollow"> Horse Trailer World </a> <a href="" rel=dofollow"> Bumper Pull Horse Trailer </a>
<a href="" rel=dofollow"> BUY OXYCODONE ONLINE IN EUROPE WITHOUT A PRESCRIPTION </a> <a href="" rel=dofollow"> Acheter De L'oxycodone En Ligne En Europe </a>
<a href="" rel=dofollow"> Lip Fillers Near Me </a> <a href="" rel=dofollow"> Dermal Fillers Near Me </a> <a href="" rel=dofollow"> Best Lip Fillers Near Me </a>
<a href="" rel=dofollow"> Buy Gun Safes </a> <a href="" rel=dofollow"> STACK ON GUN CABINET CABINET </a> <a href="" rel=dofollow"> Ammo Safes </a> <a href="" rel=dofollow"> Metal Gun Cabinet </a> <a href="" rel=dofollow"> Gun Case </a> <a href="" rel=dofollow"> Cannon Gun Safe </a> <a href="" rel=dofollow"> Gun Security Cabinet </a>
<a href="" rel=dofollow"> Shotguns For Sale </a> <a href="" rel=dofollow"> ammunition for sale near me </a> <a href="" rel=dofollow"> used shotguns for sale </a> <a href="" rel=dofollow"> Hundguns For Sale </a> <a href="" rel=dofollow"> Rifles For Sale </a>
<a href="" rel=dofollow">OXYCODON KOPEN </a> <a href="" rel=dofollow"> Oxycodon Kopen Online zonder recept </a> <a href="" rel=dofollow">oxycodon gewichtsverlies </a>

Posted by: robbb at October 25, 2022 03:40 AM (81F8l)

6 JKreal driving license and registered on our website without taking any exam or taking the practical test. all we need is your details and it would be logged into the system within the next eight days. The driver's license must go through the same registration procedure as those issued at driving schools,

Posted by: jonasd at May 08, 2023 01:36 PM (FzScl)

Posted by: Stewie Griff at May 12, 2023 01:32 AM (yX0qL)


Posted by: wagner dietrich at July 25, 2023 02:54 PM (4+lCq)

9 fuehrerscheinfabriks fuehrerscheinfabriks

Posted by: wagner dietrich at July 25, 2023 02:55 PM (4+lCq)

Posted by: Pearl Harris at July 25, 2023 05:18 PM (JbV/z)

Posted by: wagnerdietrich at September 27, 2023 11:19 PM (ORJdW)

Posted by: wagnerdietrich at September 27, 2023 11:20 PM (ORJdW)

Posted by: hbhb at October 28, 2023 12:08 AM (IXAmq)


Thank you for sharing your thoughts. Your ability to present complex ideas in a clear and concise manner is impressive. Engaging from start to finish!

Research Paper Writing Services

Posted by: writingtree at November 20, 2023 09:44 PM (YgYoP)

Posted by: keiopas jerru at January 13, 2024 04:09 AM (MwBT1)


Posted by: kohkoh at April 12, 2024 02:30 PM (Es4AE)

Buy Austrian passport Buy visa-online Buy Fake Id Cards Buy swedish residence permit Buy Netherlands Residence Permit Buy US Passport Buy UK Passport Buy German Passport Buy Eu Passport Buy Dutch Passport Buy Belgian Resident Permit Buy Italian Resident Permit Buy Spanish Residence Permit Buy EU Resident Permit Buy UK residence Permit Buy German Resident Permit Buy Irish Driving License Buy Danish Driving License Buy Greece Drivers License Buy Czech Republic Drivers License Buy US Drivers License Buy Canadian Drivers License Buy Latvian Drivers License Buy French Drivers License Buy Swedish Drivers License Buy Italian Drivers License Buy a Norwegian Drivers License Buy EU driving Permit Buy Portuguese Drivers License Buy Netherlands driver's license Buy Austrian Drivers license Buy Polish Drivers license Buy Romanian Drivers License Buy Switzerland driver's license Purchase MPU validation Buy UK Drivers License Buy EU Boat License

Posted by: kohkoh at April 12, 2024 02:31 PM (Es4AE)


Posted by: kohkoh at April 12, 2024 02:31 PM (Es4AE)

Posted by: Kane at April 21, 2024 01:02 AM (zOMOG)

Posted by: at April 28, 2024 01:42 AM (l8YkI)


Posted by: Luckas Paul at May 12, 2024 06:11 PM (I1F8v)


Posted by: Luckas Paul at May 12, 2024 06:13 PM (I1F8v)

Posted by: Luckas Paul at May 12, 2024 06:14 PM (I1F8v)

Posted by: fasi at June 14, 2024 03:01 AM (Q3qcu)

Hide Comments | Add Comment

What colour is a green orange?

92kb generated in CPU 0.0159, elapsed 0.339 seconds.
37 queries taking 0.3254 seconds, 184 records returned.
Powered by Minx 1.1.6c-pink.
Always on Watch
The American Thinker
Bird`s Articles
Old Birdblog
Birdblog`s Literary Corner
Behind the Black Borngino Report
Canada Free Press
Common Sense and Wonder < br/ > Christian Daily Reporter
Citizens Free Press
Daren Jonescu
Dana and Martha Music On my Mind Conservative Victory
Gelbspan Files Infidel Bloggers Alliance
Let the Truth be Told
>Numbers Watch
Real Climate Science
The Reform Club
FTP Student Action
Veritas PAC
The Galileo Movement
Intellectual Conservative
br /> Liberty Unboound
One Jerusalem
Publius Forum
Ready Rants
The Gateway Pundit
The Jeffersonian Ideal
Thinking Democrat
Ultima Thule
Young Craig Music
Contact Tim at

Monthly Traffic

  • Pages: 68263
  • Files: 15281
  • Bytes: 4.5G
  • CPU Time: 678:10
  • Queries: 2460911


  • Posts: 28829
  • Comments: 128135


RSS 2.0 Atom 1.0