Buy American- Remake America
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I have plenty of bad habits and Lynn reminds me that one of my worst is I am impatient and particularly when others are speaking. I tend to do two things that are particularly bad:
a) I often think I know where the person speaking is heading and I get impatient and interrupt 1)this sends a downer signal and 2) I am often wrong.
b Interrupting the person talking is both rude and creates anxiety on their part causing them 1) to lose their train of thought and 2) results in increased tension.
I spent my entire working life on the phone and I really dislike phone conversations. Consequently, I do not even own a cell phone which creates a great deal of angst among my family..
I prefer conversing through the computer because I can read what is said and do so at my leisure.
So to all those who I have been rude to please accept my deepest apology and know I am trying to mend my ways. That said, I still refuse to get a cell phone.
Meanwhile the acting Director of National Intelligence has decided to open Obama's can of worms.
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I am currently reading an interesting book recommended by one of my neighbors and a fellow memo reader. The book is entitled: "China's Great Wall of Debt."
I am about half way through and it is evident it is only a matter of time before China's debt bubble bursts and when it does it will be similar to a dam break.
What has sustained China, in particular order, re the following:
a) Their financial and growth statistics are unreliable so most of the banks are basically insolvent and many client loans are not being repaid.
b) Local entities fund their expansions by developing beyond their ability to fill the facilities. Sustaining revenue comes from taxes collected on construction but these vacant developments are becoming a time bomb.
The concept was to entice farmers to move to cities and work in better paying factories that sprang up all over the nation. However, when products from these factories could not be absorbed within China they began to flood world markets driving prices down. Furthermore, the government subsidizes much of the essential production increasing China's national debt and the government manipulates there currency to accommodate their dumping. Today China's debt is probably 240% of their GDP.
c) Land sales and rising prices is a large contributing factor which permitted the Chinese economy to expand but empty apartments, offices and commercial properties now dot the entire country and can be likened to a match.
d) China professes to adhere to open markets but the government is the final arbiter and there is no rule of law or judicial system so The Communist Party remains dominant and ruthless.
e) When Xi became head of the Communist Party he instituted programs that were designed to end corruption and bring a semblance of order but they have been ineffective.
Furthermore, his goal was to surpass America by 2020.
I admit this is pure speculation on my part but it is possible Xi allowed what happened in Wuhan to go undiscovered in the hope that if he could not accomplish his expansion goal he could bring down America.
f) As noted many times, China is expanding it's global commercial reach by making extensive loans to undeveloped nations interested in improving their own infrastructure. These loans have become s burdensome for many of the borrowing nations and China has begun to demand repayment. Many of these debtor nations have been forced to cede property, ports and mineral rights.
Furthermore, China used their own labor to construct these developments. Consequently, undeveloped nations have actually financed Chinese employment and done so at crippling costs all resulting in a win/win for China.
g) If anyone doubts China's goal of world domination they are blind. The question for the West is will we begin a co-ordinated withdrawal of trading with China?
Considering China's debt structure any decline in Chinese employment, brought about by reduced commercial interaction, could create the "tipping point."
The time for this is now.
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