China: The World Better Take Notice

The U.S. media has taken its propaganda game to stunning levels.  The reason is that the majority of the population – at the least the majority of those who even bother to make an attempt at staying apprised of current events – will believe anything it reads in the newspapers or hears/sees on on tv.  Put it on an CNN and it’s true (Note:  CNN and MSBC are inter-changeable).

There’s a pathetic core viewership for Fox News and CNN, respectively, who manically lap up the drivel fed to them by those two networks.  For those audiences, anything a show host or guest on either those two channels asserts is received as “The Word.”

Ironically, if you remove the Christian proselytizing from Fox, you get CNN/MSNBC.  Sometime in the latter years of the Bush 2 Government, I believe in sympathy with the incessant promulgation of pro-military propaganda (CNN Headline News is now similar to a State radio broadcast from the Third Reich), the previously left-leaning CNN and MSNBC transformed into Neoconservative yellow journalism soundboards.

Lost in transmission on those to networks is the fact that, contrary to his impassioned campaign promises in 2008, Obama’s Government has become an international Department of Defense-sponsored killing machine.   But “this just in,” those “wars on terror” being fought all over the globe are technically illegal.

I saw a news item in CNN this morning which reported that the military officials who were polled preferred Hillary Clinton over Trump.  That was no surprise to me.  Lurking beneath her phony smile and the circus tents fashioned into dresses which attempt to hide her growing obesity (but can’t hide her cankles) is a crazed war-monger.   Her true posture on war makes Hitler look like a pacifist.  But those are facts conveniently left out of the media’s narrative.

Turning to China, the media reporting on China’s economic and financial condition is nothing less than stunningly fraudulent.  The “Economist” has predicted economic doom in China fifty-seven times in the last couple of years.  In perusing the business news reports, one would get the impression that China’s debt problems dwarf that of the United States.   But nothing could be further from the facts.

China’s sovereign-issued debt is $5.4 trillion – or about 50% of its GDP.  The U.S. Government debt outstanding is $19 trillion – or 107% of GDP.   Government plus private sector debt in China is roughly 260% of GDP (Govt + corporate).  Note that in China the citizenry does not have debt but they do have a 50% savings rate.  At last glance, total private sector plus Government debt in the U.S. is 340% of GDP.  These debt numbers that do not include the underfunded pension problem in the U.S., which adds about another 10% to the total debt outstanding.

One last point worth mentioning.  China’s Government “balance sheet” includes about $3.4 trillion in currency reserves, not including its gold holdings.   The U.S. “balance sheet” has about $38 billion in currency reserves and likely does not own any gold.   The citizens in China use a significant portion of their savings to buy gold and silver.  U.S. citizens largely own big credit card and auto loan balances and no gold or silver.

The Shadow of Truth hosted Jeff “our eyes and ears on the ground in Beijing” Brown for discussion about what is really transpiring currently in China economically.  You will find some very interesting, if not stunning revelations, in what Jeff has to report.

4 thoughts on “China: The World Better Take Notice

  1. Well according to those press reports, it would be rather difficult for most people to contemplate that China is in a position to move its gold as a circulating currency, without a pegged relationship, and allow the market to measure gold by way of the existing fiat based price model that is already in place. Interesting, because that would make the USD the “measure of measures”.

    My goodness, that would mean that bullion might flow freely as a debt-free medium of exchange which would support global economic activity, the purging of existing fiat based debt, while also giving the world financial system (banking) a “new job” that revolves around transactional measurements for gold weight settlement.

    I’m looking for losers in this scenario and I think I might need some help. Any ideas ?
    This looks to be a page right out of the BitGold playbook. Someone’s been peeking.

  2. If China’s debt is in US dollars and the US dollar becomes worthless then would not China with its potential vast reserves of gold shrug this off, wouldn’t any US dollar debt be just as worthless as the currency?

    1. Rod … that’s correct, so in the self interest of each and each other and the rest of the world, why wouldn’t they have cozied-up with each other in the spirit of co-operation. Look for the win-win.

      China got a lot a very cheap gold in recent years. What did the USA get ? I suspect that it was not just an assurance of not flooding the market with treasuries, but also China also appreciated the symbiosis of how the dollar would be supported by the movement of China’s gold if China might want to do the world a historical favor by circulating free market gold at the USD floating price. (NOT pegged to the yuan ! )

      How many stories have you read about China pegging the gold price to the yuan ?
      That’s insane, IMO. Why look for a lose-lose when the win-win is staring you right in the face ?

      The above provides liquidity, economic rewards, the ability to purge debt, while leaving the banks with plenty of measurements in the global pricing model that they built since the development of Bretton Woods in 1944

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