Charles Hugh-Smith writes of the dimming of the “Chinese Dream.” Introducing the “Ant Tribe.”
China is an amazing political and economic entity. Watching it is fascinating.
Is it slowing? How much? Is it a lot? Is it a lot more than even the pessimists think? Is the Chinese banking system looking at a “black hole moment”? Can the banks be bailed out by the Chinese central bank without setting off a worldwide economic wildfire? No one knows the answer to these questions, including the powers that be in China.
China has been very loose with its monetary policy historically but especially since the Crash in 2008. Its economy is also run (fundamentally) by cronycrats who think they can manipulate the economy to prosperity. (Sound familiar?)
Uh oh. Things in the Ultimate Crony Capitalist State (UCCS aka China) are not going well. One gets a sense that an economic block may have just been removed somewhere (or perhaps a bandage ripped off) and things are flowing again in the economy.
China, as we have written for quite a while (along with many others) is in serious trouble. Underpinning the “Chinese Dream” is piles and piles and piles of (likely bad) debt.
Juiced data coming out of the Ultimate Crony Capitalist State? We are shocked.
This is what happens when the government runs the economy without the feedback mechanism of lawsuits and a free press. People and businesses just up and leave.
China is overbuilt, over leveraged, and over managed.
I often hear that the USA is a horrible polluter. That we use all the energy, expand our carbon foot print, and so increase the risk of global warming for the rest of the world.
China, as we’ve written many times before is the ultimate crony capitalist state. We’ve also said many times that one should be very weary of any official information coming out of China. The country has been slowing for 7 quarters. That we know. But it could be a bigger slowdown than many think.