Good article on China

[elchorizo]

I've felt this way about China for a while. Good article. China’s Monumental Ponzi: Here’s How It Unravels


Scary to think about what happens when the music stops.

 

[cereal_killer]

I just wonder what is going to happen on a global scale once the house of cards comes falling down. Scary to even think about that.

 

[BlackSuitPhantom]

Great article find! I agree with the OP. This seemed like the obvious conclusion many years ago. China is soon to experience an economic apocalypse of epic proportions. I suspect the United States will figure out a way to profit from it and become even more powerful than ever before.

Of course, that could be what starts another world war...

I suspect that because of several factors the U.S. will actually make out like bandits. The main two reasons are that we will become China's biggest buyer of their overstock of materials. This will give us tremendous power over their fate, and we could end up owning a great deal of the assets in their country because of it.

The second big reason is that China has been buying up tons of U.S. debt for decades. Think about the end result... what typically happens when a bank buys up debt, but then goes bankrupt itself? Suddenly the debt will now be cleared off the books. That would be free money in our pocket to the tune of billions.

The only negative affect would be for any US companies which have heavily invested over there. Of course, knowing our master market manipulators, they will figure out a way to make money off the crash as well.

Finally, if China's economy collapses, the US political clout will go up dramatically. We will once again be the only real economic super-power on the planet.

Of course, to play devil's advocate, The U.S. does export a ton of goods to China, so that would sting quite a bit...

 

[EdwardBaiamonte]

: Here’s How It Unravels
.

US economy did not unravel in recent housing/credit collapse so neither will Chinese economy. Central bankers know how to prevent it now. They know how to prevent a depression in the financial sector from spreading to the real economy.

 

[BlackSuitPhantom]

More than likely you are correct. It would take something truly catastrophic to cause a complete collapse of their financial system.

 

[EdwardBaiamonte]

More than likely you are correct. It would take something truly catastrophic to cause a complete collapse of their financial system.

and even if the financial system collapsed they could revive it quickly with injections of cash. I think the main consequence of all the govt socialist control will be slower and slower economic growth, exactly like what we are experiencing here.