Lew Ricker

Been brewing for a few years.

China's Evergrande files for bankruptcy | CNN Business
cnn.com

A slova from Timophea Yakovitch (a word from Tim):

I've long held that the Chinese economy is a paper tiger, the fruits of currency manipulation and a fawning West which gives them preferential treatment. But now, with the world economy on shaky ground and America's economy (to which China is intimately tied) about to go belly up the Chinese are starting to show cracks in their fascistic economic veneer.

Evergrand is China's largest landholder among other things. It's failure means a major chunk of the Chinese economy goes with it - and this could lead to a cascade failure, a recession, maybe a very big one.

China has no option but to grow her economy. Last year 11.6 million young people graduated from college and yet one in five youths are unemployed, according to the New York Times.

Every year millions of people join the workforce, more than leave it through death or retirement (if there is such a critter in China for the average person). Without continuous economic growth the public will starve, and with that comes great discontent.

Authoritarian regimes only work when the public is relatively satisfied; after that and there's trouble. Xi and his xis will have no choice but to impose martial law if the masses should show their discontent.

Their entire economic model has been based on continuous growth and easy money from the West. Shoot; America STILL gives them foreign aid, and we borrow the money we GIVE them from the Chinese themselves! See also here.

And America has tied it's economy inextricably with that of China. We go and they go, and vice versa. Actually, China is more dependent on our business than we are of theirs. That is why China was fuming over Donald Trump's attempt to extricate ourselves from the Chinese economic colonialism. I theorize it is pART OF WHy we had the Covid pandemic; I think the Chicoms, working in tandem with the American Left, purposely released Covid to get Trump out of office and to make themselves even more economically indispensible (as we shut down our economies and they did not). Fauci and the Democrats were happy to go along with this because it meant more power, more money, and got rid of that SOB Trump. (Well, he hasn't gone away yet.) I have zero proof of this of course but the Chinese play the long game, and they most certainly understood this. They knew they wouldn't be held to strict account.

At any rate, China is now experiencing the backlash of their linking their economy to ours. Of course WE are on the verge of collapse, which is why China is now trying very hard to extricate themselves from the Devil's pact with Uncle Son of Sam.

I think this signals perhaps the first dominoe to fall in what could be a Chinese economic meltdown. If the U.S. winds up defaulting on it's foreign debt (and that could well happen) China will implode. They own much of that debt.

So Evergrand could be the start of a meltdown similar to what the U.S. experienced in 2008.

And this will make Xi look for something to distract his people. If I were in Taiwan or even Japan and Korea I'd be very, very nervous.

Posted by: Timothy Birdnow at 08:28 AM | No Comments | Add Comment
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