China's Long Con: A Paper Tiger In A Fragile Economy

[Sanguine]

Authored by Andrew Moran via Liberty Nation,

We typically imagine the Chinese entrepreneur crunching numbers, working around the clock to boost the economy, and repeating Communist propaganda about the West being the supreme devil. But we might have it wrong. Considering that the major source of funding for tens of thousands of companies in China originates from the central bank’s printing press, the reality could be businessmen and employees getting plastered on baijiuand beating each other to death with Pokémon cards during office hours. Think of it as the Eastern version of The Wolf of Wall Street.

The Three Rs

The People’s Bank of China (PBOC) recently announced that it would inject $126.35 billion into the financial system by cutting the reserve requirement ratio – the number of reserves that financial institutions are mandated to hold. This represents the seventh reduction to the RRR in the last 18 months, totaling $510 billion in net liquidity.....

Put simply, the Chinese economy is one giant Ponzi scheme that depends on new investors to cover the bad debt, mask its weakness, and con the rest of the world. The revenues derived from the Ponzi are used to launder money for the nation’s leaders and well-connected elite. This is what modern-day communism looks like; forget the proletariat, Karl Marx, and Stalin-esque facial hair. It is about utilizing the power of the state, with a modicum of the enterprise system, to generate enormous wealth....

https://www.zerohedge.com/news/2019-09-07/chinas-long-con-paper-tiger-fragile-economy

[IsailedawayfromFR]

Interesting.  Ponzi schemes can last awhile but will always bust.  It's a question of when, not if.

I have seen the Chinese in a number of countries.  They are an industrious people and are in every country in the world.  Known as merchants, they for the most part populate as small mom and pop businesses.

Large businesses like what's happened during the past several decades in China must be a different role for the majority of them as I believe their affinity is as sole proprietors.  The Chinese do not have a history like this country of creating successful large businesses as entrepeneurs.  Instead, under the auspices of the state, they seek areas of taking advantage of other's business and manufacturing successes.

There is definitely more than meets the eye when one considers China's economy, dominated by the state puppetstrings.