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Tuesday, April 16, 2013

THE UNSTABLE CHINESE ECONOMY AND THE FAKE FRONTS AND REVELATIONS OF GDP - GROWTH IN CHINA.

The Chinese economy is artificial in many senses - the most in the areas of economy growth and financial stability.

In the West we formulate and say  - if four consecutive quarters of below six percent growth - shows its ugly face - we could have a hard landing.

In China there is no transparency and for sure no accountability when it comes to hard numbers and for sure nothing the Chinese reveal as data - for the general public - can be trusted.

Yesterday, April 15, 2013 the Stock Market in the United States did not favor the Chinese economy - sending a signal that China and its growth is going through some upheaval - moving in the direction of a hard landing.

In Europe as well as in the Americas - our middle class has created a buffer - and often times - when the "hard landing" is predicted and happens - that middle class  - that has the clout - manages; to keep the economy afloat.

We have seen this in Portugal, Spain, Ireland, France, Italy, and to a lesser degree in Cyprus and Greece. But, all the same we have seen it play a part - complicated, convoluted - but all the same - a reality - the signs of the time.

China's corporate sector boasts 120% GDP which has been improving from the time period the early 2011 to 2012 - and this sector is now seeing some drastic upheaval - downward spiraling.

So called economists all over the world - cannot get a sound foothold on this running train - that is going to crash - in China.

Chinese banks could suddenly without any notice choose to freeze lending.

We saw this mentioned in a way - if one paid close attention to the 60 minutes report - recently - revealing that thousands of condominiums stand vacant for years - the so called Middle Class Chinese cannot afford to buy them.

Brand new cities with thousands of housing units are vacant - and shops with fake names and no business running - have awning painted with names like Gugi, Starbucks, Rolex, Fiat, and other fancy names - to create an illusion of sorts.

Millions of Chinese citizens - who have bought into the housing units and some of them very expensive - cannot pay their rents and premiums on time.

The Chinese government has stepped in - offering incentives to keep this falling economy - afloat. Propaganda offering incentives to other Nations and some American Corporations have fallen for the ploys and machinations.

There is a hidden economy  in China- the underground economy - known in the Western World as "shadow banking".

This non-bank credit now is flourishing and has grown so big that it is out of control. This hidden economy - could fail suddenly - and create yet another situation leading to pandemonium and even dire - riots.

Those of us monitoring the Chinese economy have noticed in recent years and more in the last two years for sure - insufficient public inventories to sustain the failing domestic growth in China.

All the vain talk that the Chinese economy was growing steadily an that it could sustain the population is now - hog wash. The economy was propped up - without any sound foundation - and most of all lacked a safety belt.

I have mentioned the glut in condominiums, other housing units - vacant for years - with no demand because the Chinese population that once could afford these housing units and the Chinese middle class - that could procure high end condominiums - cannot afford to take the risk - anymore.

The shadow banking that now has penetrated at all levels of the Chinese economy - is making headway - but much like a very fast train - without any breaks - heading for a collision - sooner not latter.

All over the world -  and more in the last two years - there has been no incentive to buy Chinese products.

More Chinese product that are - inferior and cheap - more so in the Western European countries and for sure here in the United States of America. 

In does not help that tainted food product - more product linked to dog and cat food - have created suspicion and distrusted among the millions of dog and cat lovers - who are one of kind - when it comes to buying products - and most these folks - simply shun the "made in China" - products and rightly so.

In China millions of workers - working in sweat chops - and millions more in "slave camps" - are now enduring heart wrenching - suffering. The Chinese government could not give a rat's ass.

The days of high corporate leverage - the wheeling and dealing with rogue financial institutions like J.P. Morgan Chase, Goldman Sachs and some others - have come to an end. The Hedge Funds game of  chance - has hit - bottom.

April 15, 2013 we saw - the first visible crisis on Wall Street - the tip of the iceberg; linked to the Chinese economy - and there is more to follow.

For sure much before September - we in the United States will witness a spiraling downfall - on Wall Street - that  has learnt - nothing much from the last major economy downfall - in the year 2008.

Our economy in the United States is in the doldrums.

Perhaps an economist like David Stockman - has been the best in predicting what will come about. 

he Federal Bank - which is a private bank - and does NOT have the best interest of the average person in America - is playing with lives and has in the past - when millions lost their hard earned income in the United States mostly - Seniors.

The Chinese spiraling economy will bring about large - very large bankruptcies - the like we have not seen before.

There are already many job losses in China - but this could increase - by fifty percent if not more.

The banks in China have stringent controls - and non-performing loans, high liquidity crunches, major bank crisis - including the total spiraling of the now prevailing "shadow banking" in China could show its very ugly face - and blow out.

This land we call America belongs to the First People.

Two things help us all Americans - the vast resources we have on the land that once belonged to the First People. Food and water we have been blessed by the Great Spirit. Turtle Island.

Our population is nearing 320 million in 2013 - the 2010 census tallied a figure close to 311 million.

We in America must stay away from the Chinese and their ill fated polices.

Depriving people of free speech and incarcerating and torturing those that do not abide by the Chinese dictatorial - mandates.

Here is San Francisco - we can do without the Chinese help - their tainted money and their so called expertise that is linked to corruption and blood money.

America must work hard, with our resources and our talented people.

We must pray to God and have faith - and hope in our own people and our own resources. We must stay away from the Zionists who have been planted in all the key places. They do not have the best interests of our Nation.

The people of America must come first - and time to send a message to Washington DC - the corrupt politicians and more the Zionists - who want to destroy - all that is good in America - better known as Turtle Island. Aho.