China's real economic growth versus American's money printing growth and Ponzi scheme in Wall Street

25 years of the collapse of China has not come to fruition. This must be the mother of all failed propaganda ever trotted out by the West. I guess, this mantra will be repeated for another 25 years to come. I do not think Gordon Chang will still be around to witness the collapse of China, or the rise of China to be the biggest economy of the world.

Never mind that China's GDP growth is now around 4.5% or whatever, but it is still double what the USA has achieved over the years. Real growth supported by real manufacturing and real exports resulting in ever growing surpluses does not lie. On the other hand, growth through money printing is hiding a very unpalatable truth pertaining to more money being used for round-tripping investments in order to give the impression of growth. A Ponzi scheme never ends well.

Countries are wising up realizing that the Ponzi scheme is going to unravel sooner or later. Treasury interest rates are pushed higher and higher, yet few takers are being enticed. The fall of the US$ does not compensate even with the increase in interest rates and the inherent risk of holding such investments. Coupled with the risk of seizures like the Russian assets, lessons are being learnt. Investments in gold and silver rather than treasuries are now more beneficial without the inherent risk. It is better to be safe than be sorry like the Russians and Iranians.


Anonymous