03-08-2019, 02:47 PM
** 8-Mar-2019 Shocking China export figures may signal global recession
Analysts are describing China's February import-export figures as
"shocking," and possibly a signal of a global recession.
February exports fell 20.7% from a year earlier, far worse than the
expected 4.8% drop. China still had a trade surplus, as usual, but it
was $4.12 billion, much smaller than the forcasted $26.38 billion.
China’s data on Friday showed its surplus with the United States
narrowed to $14.72 billion in February from $27.3 billion in January,
and it has promised to buy more U.S. goods such as agricultural
products as part of the trade discussions.
Many people are blaming China's weak trade figures on the tariffs
imposed by the Trump administration in conjunction with the trade
talks.
A lot of people, including the Chinese themselves, believe that a
government-controlled economy will never have a recession because the
government can print money or issue regulations to prevent it.
Actually, the opposite is true. Government-controlled economies are
always a disaster, because the businesses being controlled have no
incentive to develop new products, or to cut bloated bureacracies, or
to end unprofitable businesses, since the government always bails them
out. The result is that a government-controlled economy crashes
harder and faster than a free market economy.
That's what's happening in China. The CCP spent barrels of money, but
has only created bloated bureacracies, zombie companies and ghost
cities. As I wrote recently, except for financial services companies,
there are no profitable companies in China except for one: Huawei.
And Huawei is under attack internationally because it's more and more
widely understood that Huawei devices and chips have backdoors that
can be controlled by China's military.
The Chinese economy accounts for almost a third of global growth,
which is why many economists are predicting a global recession.
A Chinese recession will certainly cause more public protests, as
there are already hundreds of thousands of "mass events" each year.
China has had massive rebellions throughout its history, the last two
of which were Mao's Communist Revolution (1934-49) or the Taiping
Rebellion (1852-64).
China is overdue for its next massive rebellion, and the CCP criminals
are aware of that, which is why they've built concentration camps and
crematoria for a million Muslim Uighurs in East Turkistan (Xinjiang
province), they're blowing up Buddhist statues, demolishing Christian
churches, slaughtering Buddhist Tibetans in Tibet Province, and
demanding that the new Yellow Emperor, Xi Jinping, be the only person
who may be worshipped as God.
------ Sources:
--- China February exports tumble the most in three years, spur fears
of 'trade recession'
https://www.reuters.com/article/us-china...SKCN1QP0CA
(Reuters)
--- China's Slowdown Is Exposing The Cracks In The Global Economy
https://seekingalpha.com/article/4247239...al-economy
(Seeking Alpha)
--- China's exports fall more than 20% in February; overall trade data
come in much weaker
https://www.cnbc.com/2019/03/08/china-fe...-data.html
(CNBC)
--- China’s exports plunge more than 20%
https://www.asiatimes.com/2019/03/articl...e-than-20/
(Asia Times)
--- Chinese exports fall amid US tariffs, weak global demand
https://www.apnews.com/fb6fe35a2c3442b3927fbe46fa025fd6 (AP)
Analysts are describing China's February import-export figures as
"shocking," and possibly a signal of a global recession.
February exports fell 20.7% from a year earlier, far worse than the
expected 4.8% drop. China still had a trade surplus, as usual, but it
was $4.12 billion, much smaller than the forcasted $26.38 billion.
China’s data on Friday showed its surplus with the United States
narrowed to $14.72 billion in February from $27.3 billion in January,
and it has promised to buy more U.S. goods such as agricultural
products as part of the trade discussions.
Many people are blaming China's weak trade figures on the tariffs
imposed by the Trump administration in conjunction with the trade
talks.
- China came through the 2008 financial crisis by huge spending
programs, and it's catching up to them. The debt-to-GDP was at 250%
in mid-2018, up from 14% in 2008. Today, in 2019, Goldman Sachs says
that it's over 300%.
- The country is riddled with loss-making factories, with excess
production capacity, insolvent "zombie" companies, all parts of a
wasteful economy created by debt, corruption and extreme
centralization of power in the hands of the Chinese Communist Party.
- In 2018, the rate of corporate debt defaults set new records.
- Nonperforming bad loans are a record levels, estimated at a total
of $8.5 trillion, 24% of total credit.
- Capital outflows and capital flight is rampant, as Chinese
investors have been driving up real estate prices in many western
capitals, as in 2018 they remained the top foreign residential real
estate buyers in the US for six years in a row.
- China's birth rate keeps falling, despite ending the one-child
policy in 2016, and is now the lowest since 1949.
A lot of people, including the Chinese themselves, believe that a
government-controlled economy will never have a recession because the
government can print money or issue regulations to prevent it.
Actually, the opposite is true. Government-controlled economies are
always a disaster, because the businesses being controlled have no
incentive to develop new products, or to cut bloated bureacracies, or
to end unprofitable businesses, since the government always bails them
out. The result is that a government-controlled economy crashes
harder and faster than a free market economy.
That's what's happening in China. The CCP spent barrels of money, but
has only created bloated bureacracies, zombie companies and ghost
cities. As I wrote recently, except for financial services companies,
there are no profitable companies in China except for one: Huawei.
And Huawei is under attack internationally because it's more and more
widely understood that Huawei devices and chips have backdoors that
can be controlled by China's military.
The Chinese economy accounts for almost a third of global growth,
which is why many economists are predicting a global recession.
A Chinese recession will certainly cause more public protests, as
there are already hundreds of thousands of "mass events" each year.
China has had massive rebellions throughout its history, the last two
of which were Mao's Communist Revolution (1934-49) or the Taiping
Rebellion (1852-64).
China is overdue for its next massive rebellion, and the CCP criminals
are aware of that, which is why they've built concentration camps and
crematoria for a million Muslim Uighurs in East Turkistan (Xinjiang
province), they're blowing up Buddhist statues, demolishing Christian
churches, slaughtering Buddhist Tibetans in Tibet Province, and
demanding that the new Yellow Emperor, Xi Jinping, be the only person
who may be worshipped as God.
------ Sources:
--- China February exports tumble the most in three years, spur fears
of 'trade recession'
https://www.reuters.com/article/us-china...SKCN1QP0CA
(Reuters)
--- China's Slowdown Is Exposing The Cracks In The Global Economy
https://seekingalpha.com/article/4247239...al-economy
(Seeking Alpha)
--- China's exports fall more than 20% in February; overall trade data
come in much weaker
https://www.cnbc.com/2019/03/08/china-fe...-data.html
(CNBC)
--- China’s exports plunge more than 20%
https://www.asiatimes.com/2019/03/articl...e-than-20/
(Asia Times)
--- Chinese exports fall amid US tariffs, weak global demand
https://www.apnews.com/fb6fe35a2c3442b3927fbe46fa025fd6 (AP)
