By: Cliff Kincaid
There is hope for America in China, which could go bust. But not if the China Joe Administration has its way.
Financial analyst Chris Temple was on my TV show recently and we discussed how China’s movement through capitalism, on the way to socialism and communism, has now threatened the survival of the dictatorship. He writes that, “China is in considerably greater financial/monetary peril than is the U.S. (among other things, China’s debt-to-GDP ratio is more than double that of the U.S.) By the end of 2020, China’s total acknowledged public and private debt exceeded 300% of GDP; and that likely does not include debt in the country’s shadow banking system.”
In regard to one aspect of the problem, the Wall Street Journal has a front-page story and photo of the empty buildings in China’s provincial cities, tied to the Evergrande property giant.
What is happening presents a golden opportunity for America.
The Marxist theory of history (historical materialism) has convinced them communism will triumph by moving countries through stages of slavery, feudalism, capitalism, and socialism. Every country is in one or another phase, depending on history and circumstances. China is now in the capitalist phase, under the guidance of the Chinese Communist Party. But as Chris Temple notes, President Xi Jinping has made the decision to have China revert “back” to a more traditional communist state in order to consolidate/keep power. Xi sees this as the next phase, socialism, on the way to pure communism.
The Economist, a mouthpiece for the establishment, puts it this way: “Xi Jinping is waging a campaign to purge China of capitalist excesses. China’s president sees surging debt as the poisonous fruit of financial speculation and billionaires as a mockery of Marxism.”