Stratfor builds a case for the unsustainability of an 8% growth minumum, which China says it needs to placate the growing millions who have entered and are entering the job market at a staggering 16 million this year alone.
Stratfor says there are "structural elements that render 8% annual growth impossible" and compares the current Chinese economy to a giant ponzi scheme!
So, how are ponzi schemès maintained? Well, if Bernie Madoff and his ilk are an indication, it is done with lies, lies and more lies! The lies have to convince some smart people of their legimacy, after which those lies are then spread by otherwise legitimate people and businesses.It is only after the lies have been uncovered that the typical ponzi scheme begins to unravel. As I have pointed out in prior posts, if you cannot believe some of the economic reports coming out of some Wallstreet firms, then how can you count on the word of a cloistered, communist elite, that has absolutely no interest in your (or your moneys) wellbeing. Their only interest is how they will hold on to power in the coming years.
Stratfor brings up some familiar old ghosts, from our own recent past as they point out:
For several years now I have enjoyed reading the informative, and sometimes contraversal reports from Stratfor Global Intelligence. For the purposes of disclosure, I have no interest or investment, nor do I benefit from Stratfor, except for sometimes using their valuable intelligence.
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Happy investing.
HP
