Mysterious events in China – mum’s the word
In fact Evergrade missed the payment. But Evergrande is not the only big investment bank in China, and all of them are in trouble. If Evergrande is going into bankruptcy there will likely be a cascade of bank failures. If that happens that will impact the world bond market and maybe kick off a 2008 style economic catastrophe.
The CCP has built China to be the world’s factory, pulling in manufacturing capacity from other nations by undercutting prices. That they can do for a long time as their wages for ordinary workers is relatively lower than almost anywhere else in the world.
Inflation is surging in China, worse than here. This is bearable for now for a great proportion of the population which is still employed at better than minimum wages (bearing in mind that China uses a good deal of unpaid slave labor), but for the lowest tier of unskilled workers it is unbearable. It was precisely the worsening of poverty among the unskilled working class that kicked off the Boxer rebellion over a century ago. It was precisely this that lit the fuse of the Arab Spring during the Obama maladministration.
The CCP knows that it retains the Mandate of Heaven only so long as it fulfills the promise of the Iron Rice Bowl, a kind of social safety net that guarantees food for all. Once the Iron Rice Bowl breaks all bets are off. Despite the appearance of peace and prosperity, an image carefully crafted for the world to see, Chinese society is very troubled. In recent years there have been tens of thousands of violent demonstrations across the country every year. With the appearance of theses blasts it is possible we are seeing the genesis of one of China’s great historical sorrows, loss of central control and the rise of the worst kind of bloody anarchy.
The world is changing in unpredictable ways, this is very dangerous for centrally planned economies. For China unplanned and unknowable events – loss of half of their agricultural production to flooding caused by heavy rains, cascading bank failures, galloping inflation, devaluation of their US dollar reserves due to American inflation, the supply chain crisis, electrical power shortages due to fuel shortages for the power plants, the imminent, and if it comes, cataclysmic collapse of the Thee Gorges Dam, the resurgence of Covid-19, to which the Chinese population is more susceptible than almost anywhere else – any of which could result in the collapse of the CCP and the deaths of tens of millions, is utterly terrifying.
The CCP’s victorious war against the United States may yet prove to be the worst strategic blunder possible. They have always needed us more than we needed them. Although they are undoubtedly complicit in the collapse of the US, their attempt of leverage our collapse to their benefit is failing; the whole world sees it. The Beijing Brandon regime is also collapsing, but not as fast or in the way hoped for. We the People have begun to resist the regime en masse, that will only grow. Where the CCP had expected to hold the American levers of power they are finding that as Americans self organize the levers of power are no longer controlling the government machine. Every input results in an unexpected output requiring more futile efforts at control.
The Lets Go Brandon government machine is falling apart. It will be taken over by Patriots over whom the CCP has no control. As bleak as things seem now, they are going to get worse before they get better. Our own Deep State does not have the power it once believed it had, as a result they are afraid of us, and desperate to complete their takeover before they get taken down. It won’t work, the more they try to hold us down the more we keep slipping through their fingers. They are trying to build a wall while at the same time digging up the foundations to get the building material.
The CCP, as tyrannies everywhere, struts and postures and beats it’s chest and proclaims itself the greatest but at bottom it is a flim-flam man, a cover up artist, a fraud. Just as their demented puppet state in North America exposes its illegitimacy by every word and deed, so by extension it exposes the illegitimacy of the puppeteer.
Always keep in mind that whereas we have not won yet, and despite the hard times ahead, we will win and they will lose.