There seem to be stories almost every day about the pitiful condition of China’s economy, and not just in the Journal. On Fox News last week, they reported that in one month, January, China had 5.1% inflation, and not because of the virus. We have less than 2% a year. In other words, like all governments around the world, the politicos love to run up debts to get the fools to vote for them. After all, whoever who brings home the bacon, if he is an elected official, will vote eternally for more bacon, to stay in office. This is why we need term limits for both houses of Congress. Three for a representative and two for the senate. We have a two term limit for president, why not have limits for the rest? A Balanced Budget Amendment for the Constitution? I doubt that enough votes could ever be gotten to pass that one, but I wish someone would try.
The Media is constantly harping about the Trump deficit of a trillion dollars. They fail to mention that Obama doubled the national debt in eight years. While he was playing hundreds of golf games, destroying the military, and blossoming the welfare state, RINOS in the Senate, including John McCain, failed to get a majority for stopping the rape of America by its President and his Democrats. If Trump weren’t re-building the military, his budget would be very close to being balanced. Federal employment is decreasing, and welfare is also, not counting the extinguishing of hundreds of useless, profit killing, inane regulations.
To repeat what I have written about China in the past, I think its failure will be probably very sudden and unexpected, just like the failure of the Soviet Union. One day it was threatening peace in the world, and the next day it was gone, because of bankruptcy. Russia, technically, is no longer a communist nation, and even though Putin is a half ass dictator, Russia is not even remotely like it was as a Soviet State. So here are a few excerpts from columns in the Journal (Wall Street), which I will not live without. It isn’t cheap, but well with the money, (I think about $415 a year). From February 22nd, the headline read “Chinese Bond Issuer On Brink Of Default.” The column said in the first paragraph, in part, ”A conglomerate backed by an elite Bejing university missed a key debt payment…” The article goes on to elucidate several other bond payments missed and in default buy the Chinese government. But the biggie (5 columns) was on Feb 20th, with the headline reading “China’s Façade of Stability.” First sentence, 2nd paragraph: “The more Mr. XI pursues his authoritarian agenda, the more distrust he will sow (sic) at home.” The article goes on the explain how full of lies the Coronavirus explanation was, and how it was at first denied and then lied about, making it far worse than it might have been without XI’s dictatorship. A few quotes follow. “Mr. XI and his associates think China has now grown big enough to challenge the West, but with what?” “The problem now before the world is the rise of a Goliath like China, which no one trusts.”
So we now have China’s banks in default as previous columns have shown, which I wrote using official quotes, China having huge inflation, pumping paper money into circulation to pay its bills, like all other failed nations, but having one man (XI) having managed to give himself unlimited power with no term limits of any kind, which to me, is an ironclad future cloud of doom and bankruptcy. China is incapable of inventing anything. Everything it manufactures to compete with the free world, it stole from us. It has not invented anything! It has pilfered our technology, patents, and manufacturing systems, and this has been ongoing for over 40 years. The Japs did it too. After WWII, the Japanese bought a Leica camera, took it home and duplicated it down to the tiniest part, called it the ‘Canon’, and sold it far cheaper than a Leica, because it was made with slave labor, paid no attention to patents, and stuck up its thumb to Germany, its manufacturer and inventor. The Chinese have done the same thing. They copied every single American item, from tools, cosmetics, technology, TV, radio, mechanics, autos, etc, put their name on them and sold them to the world at lower prices than were set by the inventors who used free world labor to make them, not fifty cents an hour labor or a dollar an hour or whatever. The ‘big box stores’ we unfortunately buy from, are full of Chinese junk, and it is so prevalent that we no longer think about it. Thankfully Donald Trump knows about this and will hopefully correct it. Let’s fill the big box stores with “MADE IN THE USA” Labels on them.
We Americans are still relatively free. We’re still free to think, innovate, invent, simplify, develop, market, produce, patent, and do whatever a free mind can contrive. A totalitarian society such as China, is only a few years away from becoming a Venezuela or Cuba. Russia has partially learned the lesson of the destructive power of socialism-communism, is not totally free of it yet, and may never be, but China has freshly adopted it. When you ‘short’ a stock, you hope to profit from its going down. If China were a stock, and I could ‘short’ it for several years, and I would make a lot of money! –
Don Stott
don@coloradogold