This morning, Reuters reported that the Chinese government levied strong pressure to induce the European Central Bank to make some serious rate cuts, to maintain the continued growth of the Chinese economy. Reports of economic difficulties around the world stir sentiment in Beijing, mostly that the troubles facing the world from the excesses and capital markets failures, should not adversely impact Beijing’s expansion plans.
The Chinese surplus and prosperity are nice, but the Chinese would like to maintain double digit quarterly economic growth. I guess the government is concerned that they will have to revert from the “government officials living a life of capitalism by enslaving the population to work for very little” method of communism, to the “iron fisted, run over people with a tank if they protest any of the methods or governmental rules” method of communism, with up to a three bullet penalty for citizens that speak out against possible results of the downturn, such as unemployment or civil unrest.
It shows that everybody is sipping at the cup of prosperity and that our economies, all petty nationalistic differences aside, are linked together materially. The funny note here is that the Chinese don’t need this level of growth to maintain order and prosperity, they just want it. So Europe, America and Japan, you all need to lower rates, borrow and maintain trade deficits with China if human rights and lives mean anything to you. The Chinese are willing to own all of the nations contained in the above countries, and are willing to invest much of their surpluses until everyone reports to Beijing.
So as we tighten our belts, open foreclosure notices, and go from steak to chicken to ride out our recession, remember that even the “haves” are facing issues, and hats off to them. Let’s say a prayer that they don’t have to act harshly against citizens who are foolish enough to speak up.
Hope everyone has a Happy Thanksgiving!
Be careful, be watchful and Good luck! ”by John Flynn | December 20, 2018