Most Western capitalist ‘experts’ still lag way behind in their appreciation of the depth and severity of the crisis afflicting the economy and Xi Jinping’s dictatorial capitalist regime. Blinded to some extent by Beijing’s official GDP data, which significantly exaggerates economic growth, many commentators see the current crisis as cyclical in character: a weak recovery following the excruciating three-year pandemic aggravated by Xi’s fanatical Zero-Covid policies.
But China’s malaise is structural, not cyclical. The CCP regime’s debt-driven state capitalist economic model has broken down. The results are: (i) a debt crisis, especially at the local government level, which has been the main driver of investment in China, (ii) falling consumption under the impact of unemployment, wage cuts, and insecurity as the property sector and the value of houses implode, and (iii) historic levels of overproduction and overcapacity spurred on by Xi Jinping’s pet project to build out the “new quality productive forces”, which has unleashed brutal price wars and pushed the economy deeper into deflation. These are all features of ‘Japanification’ of which we have warned for many years.
Edmund Hui, chief executive officer of one of Hong Kong’s biggest local brokerages, Bright Smart Securities, said his firm has experienced a “massive jump” in account openings.
Brokers across Hong Kong are experiencing a similar euphoria as the stocks of Chinese companies soar in the wake of landmark stimulus moves by Beijing last week. Tiger Brokers, a popular trading platform among Hong Kong retail investors, said it posted a 73% jump in account openings last week.
The thing is … China is a stimulus junkie… wrecked by years of pumping up their economy with ghost cities and other heroin infusions… the country is in the same state a burned out crack whore…
To prevent the whore from dying … they are now pumping her with massive amounts of stimulants… massive lines of cocaine… mixed with speed… and meth…
The dying whore has been energized… she’s prancing around the street corner looking for johns to join her for a back alley romp…
The stimulants will not fix the nasty diseased whore… it will only damage her body further…
Eventually … the stimulants will have no effect on her… they can shovel heaps of cocaine into her… and it will barely raise her pulse…
But wait, there's much more: at a time when not even the shoeshine boy wants to be within a ten foot pole of Chinese stocks, the PBOC governor also said that - in a last ditch attempt to bail out the country's stock market - it will set up a swap facility allowing securities firms, funds and insurance companies to tap liquidity from PBOC to buy stocks.
Brokers, funds and insurers will be allowed to pledge assets in exchange for liquidity for funds and buy stocks; the PBOC will also set up a separate specialized refinancing facility for listed companies and major shareholders to buy back shares, raise holdings. In other words, Beijing is greenlighting direct intervention in the stock market to prop up stocks.
Excerpt: "As I have said, my fear is that they know what they are doing, and Putin has shown tremendous restraint. They want him to be overthrown by Russian Neocons, and they will not hesitate to use nuclear weapons. Brekelmans declared:
“We have not placed any operational restrictions on Ukraine regarding distance.”
tofu dreg construction counterfeit cheating each other fake soy sauce hair
produce produce produce .... what happens when the party stops? NO more available oil or accessible coal? No more loans, no more growth!!! MISERY. wahwahwah i cannot find husband i go to city wahwahwah recall of loans recall of bank accounts governments going after failed businesses... kaBOOM money demand destruction to zero as DEBT cannot grow any faster. neoliberal maximization at its peak. puke stupidity.
I suppose if they can get a new reserve currency up and running, with gold backing... that might be the Hail Mary which buys a bit of time. But, BRICS is quickly becoming a Frankensteinian monster.... or perhaps more like a financial boat trying to save a 150 drowning countries.
I assume that if something could be done ... they'd do it...
The thing is... the central banks have been coordinating policies to kick the can down the road as far as possible... to delay total collapse as long as possible...
Many cheap workers returned to their villages. Most were migrants who built the megacities and the infrastructure. The real estate bubble was not a surprise. There are, definitely issues, but I am not seeing what I am reading in lots of articles or western news.
And for good measure:
China’s nightmare economy
Most Western capitalist ‘experts’ still lag way behind in their appreciation of the depth and severity of the crisis afflicting the economy and Xi Jinping’s dictatorial capitalist regime. Blinded to some extent by Beijing’s official GDP data, which significantly exaggerates economic growth, many commentators see the current crisis as cyclical in character: a weak recovery following the excruciating three-year pandemic aggravated by Xi’s fanatical Zero-Covid policies.
But China’s malaise is structural, not cyclical. The CCP regime’s debt-driven state capitalist economic model has broken down. The results are: (i) a debt crisis, especially at the local government level, which has been the main driver of investment in China, (ii) falling consumption under the impact of unemployment, wage cuts, and insecurity as the property sector and the value of houses implode, and (iii) historic levels of overproduction and overcapacity spurred on by Xi Jinping’s pet project to build out the “new quality productive forces”, which has unleashed brutal price wars and pushed the economy deeper into deflation. These are all features of ‘Japanification’ of which we have warned for many years.
https://chinaworker.info/en/2024/09/05/45889/
2024: How big is China's crisis? https://www.youtube.com/watch?v=Tq0DsioVmls
Edmund Hui, chief executive officer of one of Hong Kong’s biggest local brokerages, Bright Smart Securities, said his firm has experienced a “massive jump” in account openings.
Brokers across Hong Kong are experiencing a similar euphoria as the stocks of Chinese companies soar in the wake of landmark stimulus moves by Beijing last week. Tiger Brokers, a popular trading platform among Hong Kong retail investors, said it posted a 73% jump in account openings last week.
https://finance.yahoo.com/news/hong-kong-brokers-swamped-once-100907712.html
The thing is … China is a stimulus junkie… wrecked by years of pumping up their economy with ghost cities and other heroin infusions… the country is in the same state a burned out crack whore…
To prevent the whore from dying … they are now pumping her with massive amounts of stimulants… massive lines of cocaine… mixed with speed… and meth…
The dying whore has been energized… she’s prancing around the street corner looking for johns to join her for a back alley romp…
The stimulants will not fix the nasty diseased whore… it will only damage her body further…
Eventually … the stimulants will have no effect on her… they can shovel heaps of cocaine into her… and it will barely raise her pulse…
Sure feels like the end game is close…
But wait, there's much more: at a time when not even the shoeshine boy wants to be within a ten foot pole of Chinese stocks, the PBOC governor also said that - in a last ditch attempt to bail out the country's stock market - it will set up a swap facility allowing securities firms, funds and insurance companies to tap liquidity from PBOC to buy stocks.
Brokers, funds and insurers will be allowed to pledge assets in exchange for liquidity for funds and buy stocks; the PBOC will also set up a separate specialized refinancing facility for listed companies and major shareholders to buy back shares, raise holdings. In other words, Beijing is greenlighting direct intervention in the stock market to prop up stocks.
https://www.zerohedge.com/markets/china-panics-cuts-multiple-rates-and-reserve-ratio-requirements-goes-all-prop-stocks
I say, why wait, let the Nukes fly and lets end this human disaster and let the animals have a crack at it on planet earth.
"Netherlands Approves Ukraine To Use Their Weapons to Attack Moscow"
https://www.armstrongeconomics.com/world-news/war/netherlands-approves-ukraine-to-use-their-weapons-to-attack-moscow/
Excerpt: "As I have said, my fear is that they know what they are doing, and Putin has shown tremendous restraint. They want him to be overthrown by Russian Neocons, and they will not hesitate to use nuclear weapons. Brekelmans declared:
“We have not placed any operational restrictions on Ukraine regarding distance.”
Absolutely!!! Exterminate the vile stupid species... and the nightmare that they have inflicted on the planet and all other species ends
That is The Only Solution for this https://fasteddynz.substack.com/p/the-dumbest-species-ever
The entire planet is participating in this shit show. It will be epic when the whole thing goes tits up !
Coming to Amerika?
this was forseeable long ago.
chink chink attitude money money money.
tofu dreg construction counterfeit cheating each other fake soy sauce hair
produce produce produce .... what happens when the party stops? NO more available oil or accessible coal? No more loans, no more growth!!! MISERY. wahwahwah i cannot find husband i go to city wahwahwah recall of loans recall of bank accounts governments going after failed businesses... kaBOOM money demand destruction to zero as DEBT cannot grow any faster. neoliberal maximization at its peak. puke stupidity.
I suppose if they can get a new reserve currency up and running, with gold backing... that might be the Hail Mary which buys a bit of time. But, BRICS is quickly becoming a Frankensteinian monster.... or perhaps more like a financial boat trying to save a 150 drowning countries.
I assume that if something could be done ... they'd do it...
The thing is... the central banks have been coordinating policies to kick the can down the road as far as possible... to delay total collapse as long as possible...
It looks like they are now running out of road... surely they will not stand back and watch 8B+ of us murder, rape, and eat each other... surely their plan will complete before that happens https://fasteddynz.substack.com/p/the-ultimate-extinction-plan-uep
Do not forget that all China’s land belongs to the government. There is no private property. They’ll find solutions…
Besides, nationals are not torn against each other, and a vast majority of citizens support their government.
There is no solution. https://chinaworker.info/en/2024/09/11/45996/ China’s ‘Japanification’ worse than Japan’s
Many cheap workers returned to their villages. Most were migrants who built the megacities and the infrastructure. The real estate bubble was not a surprise. There are, definitely issues, but I am not seeing what I am reading in lots of articles or western news.
Doomed... no way out... https://www.scmp.com/economy/global-economy/article/3278127/confidence-us-firms-china-wanes-record-numbers-cut-investments-amid-hardships?module=top_story&pgtype=homepage
🙃