Why Chinas Belt and Road Has Failed

Don’t know anything about the Nazi bills but will research it. Significant US market drop related to China bubbles? Ingredients for conflict pie: Start with 37 million surplus men Mix in Piling debt to fund (now meaningless) growth Add Real estate bubble Bake in A paranoid totalitarian government One more reason to really want those islands... <a href="https://www.popularmechanics.com/science/energy/news/amp26573/china-and-japan-methane-hydrate/?__twitter_impression=true" rel="nofollow noopener" target="_blank">https://www.popularmechanics.com/science/energy/news/amp26573/china-and-japan-methane-hydrate/?__twitter_impression=true</a>

Both Economic Hitman and Peter Zeihan are great sources. Are you familiar with the history of how Nazi Germany created shadowbanking with Mefo Bills and Oeffa Bills? There’s a history of governments “creative financing” in infrastructure projects to disguise massive capital losses. FDR built the Hoover Dam. Hitler built the Autobahn. Even now in America, Republicans talk about The Wall and Democrats the Green New Deal. Or, the history of the IMF to rebuild Europe after WW2. Don’t be surprised when Treasuries (currently stuck on balance sheets of Primary Dealers because no one wants to buy them) crash in value and have the be backstopped by SDRs from the IMF under the guise of some “economic rebuilding” project. In this regard, China is acting pre-emptively with the BRI as they contain the collapse of their real estate and stock market credit bubbles.

Sean Wieland

Have you seen the documentary The China Hustle yet? It’s from 2017, produced here in the suburbs of Philly (Skippack, PA). It reveals the deep level of accounting fraud in the Chinese Miracle of the past decade, confirming much of what you and Winston observe first-hand.

Sean Wieland

BRI might be the result of several practical factors for the CCP. One might be playing the “Economic Hitman” debt game. Another might be keeping the populace employed so they aren’t tempted to backlash at the government(according to Peter Zeihan they are recently allowing the country to go into enormous debt to do this). The third is that there is still a large surplus of single men so these overseas construction projects will employ them - they’ve already overbuilt their own country with these men so this is a pivot to overseas.