What's this? China going bankrupt faster than U.S.?
Economic planning expert says implosion could drag America down
Posted: November 28, 2011
8:57 pm Eastern
© 2011 WND
WASHINGTON – Here's a shocker.
China is going broke faster than the U.S., according to economic planner Kirk Elliott – who is making this point the lynchpin of alive webinar he's conducting for WND viewers today at 12:30 p.m. Eastern.
Here are some shocking facts Elliott discusses in aWND column todayon which he will expound during the webinar:
- China's debt is about $36 trillion yuan (or $5.68 trillion USD).This number is astronomical considering that it is just a little more than one-third of the U.S. total debt, but the difference between the U.S. and China is that the U.S. national income per capita is $47,140, whereas China's national income per capita is $4,260 – not even one-tenth of the U.S. amount. To be on par with the U.S., China's total debt should be around $1.5 trillion USD, but it is three times that! Considering that the U.S. has an unsustainable debt position, China's is ridiculously out of control and puts that country in extreme danger of afinancialcollapse of epic proportions.
- China's officially published interest rate of 6.2 percent is fabricated.In reality China'sinflationis 16 percent. This is eerily similar to the United States as well. The U.S. official inflation of around 3 percent is nowhere close to unofficial inflation estimates of 10-13 percent. What does this mean for China? This means that cost of living, wages and cost of goods sold in China will have to rise, and instead of exporting deflation, China will be exporting higher priced goods, thus affecting the rest of the world that purchases its goods. The world is on the verge of an inflationary cycle like we have never seen. Additionally, centralbanksaround the globe are printing money on a massive scale to try to stimulate liquidity and spending (this is the definition of inflation!). Add to this a rising price structure in China, the major exporter to the world, and we could be preparing for a global hyperinflation.
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- Excess capacity in the economy and private consumption is only 30 percent of economic activity.Of course this is the case, as China's population is extremely poor and China is an exporting nation. The vast majority of its goodsshould notbe private consumption. But, what the excess capacity indicates is that there is aglobaleconomicslowdown. Since China's growth is dependent on the rest of the world purchasing its goods, a global recession does not bode well for China's economic future.
- China's officially publishedGDPgrowth of 9 percent is fabricated.The real number is anegative10 percent! China's robust GDP has always been a pipe dream, as the country has been building infrastructure (railroads, highways and real estate development – includingghostcities). Since personal spending is only 30 percent of China's GDP, roughly 70 percent of China's GDP can be attributed to this massive build-up. Itwilldry up, as has already started. The regime is about to be exposed, as people are starting to wake up to the fact that the "emperor has no clothes."
- China's taxes are too high.Taxes on Chinese businesses – indirect and direct – are 70 percent of earnings. Individual tax rates are 81.6 percent. There isno wayChina can remain strong with these high taxes. We thought our taxes were high – because they are! But we are like schoolboys compared to China. It is the big boy on the taxation block. It's just economics 101 – a country cannot remain strong or viable with tax rates this high. The population will ultimately revolt. I really believe China is ripe forrevolutiongiven these numbers; it's just a matter of time. Sadly, for the Chinese citizens, their strong-arm government will not look kindly on any kind of political or social opposition.
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- Politics & GovernmentFEATURED- John Ransom, Finance Editor:Published Date: 11/29/2011
This Old Socialist Maxine Waters in Line to Replace Barney Frank on Banking
When Barney Frank (D-Fannie Mae) announces that he’s not going to run for reelection, you can bet that the Democrats have between zero chances and zilch of winning back the lower chamber. Or at least you hope they do, because the stakes are greater than merely partisan politics.
While Politico reports that Democrats aren’t yet writing off winning back the US House of Representatives, TownhallFinance will tell you that it’s a near certainty that the GOP will pick up seats in 2012; thankfully and gratefully.
And that’s a good thing for both Republicans and Democrats, because next in line for Frank’s chairmanship of the House Financial Services Committee, presuming the Democrats could win back the House, would be This Old Socialist, Maxine Waters (D-Bat Stuff Crazy), according tothe Washington Post.
While the generic ballot has tilted in the last few weeks a little more toward the left, the trend is all GOP since 2008.
Until a Democrat wins a race that a Democrat is supposed to lose, nothing has changed. All you need to know is that the Democrats lost NY-9, a congressional district Obama won by 11 points and Kerry won by 12 points.
So relax: Maxine is probably not going to be running the banking system any time soon.
You know, unless the GOP screws up.
Remember I said “probably.”
Still, you might want to take up prayer too.
But for Barney Frank what’s at stake isn’t just ending his political career with whatever dignity he has left- which isn’t a lot. Instead, he’s looking at the destruction of the capstone of his career, the so-called Dodd-Frank banking reforms.
Number one on the Republican hit list of legislative repeals might be Obamacare, but Dodd-Frank is a close second.
“With Republicans set on repealing Dodd-Frank,” reports the Post “whose biggest components are still being put into effect, Democrats will be forced to fill the void to keep the legislation intact after the Massachusetts Representative retires in 2012.”
Already the Dodd portion of Dodd-Frank was put out to pasture.
Senator Chris Dodd was a victim of an electorate who was tired of inside dealing by Congress and legislation written by special interests. Rather than face an angry and disgruntled electorate, Dodd chose not to run for reelection.
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