Chinese economy is unsustainable according to Stratfor Global Intelligence.
Stratfor says there are "structural elements that render 8% annual growth impossible" and compares the current Chinese economy to a giant ponzi scheme!
So, how are ponzi schemès maintained? Well, if Bernie Madoff and his ilk are an indication, it is done with lies, lies and more lies! The lies have to convince some smart people of their legimacy, after which those lies are then spread by otherwise legitimate people and businesses.It is only after the lies have been uncovered that the typical ponzi scheme begins to unravel. As I have pointed out in prior posts, if you cannot believe some of the economic reports coming out of some Wallstreet firms, then how can you count on the word of a cloistered, communist elite, that has absolutely no interest in your (or your moneys) wellbeing. Their only interest is how they will hold on to power in the coming years.
Stratfor brings up some familiar old ghosts, from our own recent past as they point out:
China's economy (according to China) needs 8% annual growth, just to keep the roughly 16 million new people entering the work force from rising in jobless protest—and to keep up with climbing wages and to sustain a growing retired population. A combination of exports, loose lending practices, super low margins, and government spending help keep up the growth. Sound healthy to you? "
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- Calculating the Coming Slowdown in China (nytimes.com)
- Could 'unsustainable growth' prompt business insurance review? (premierlinedirect.co.uk)
- Making Sense of the Syrian Crisis | STRATFOR (rajcairnsreport.wordpress.com)
- China: What Will The Government Do After It Crashes Its Economy? (businessinsider.com)