Big trouble in big China

Mish is always on top of the best global economic news.  No way can small bloggers compete with him on that front but we can potentially add some opinions and insight that might be of value.  Today he reports on more Chinese problems looming.   To sum it up, social unrest is rising in more Chinese urban locations and serious fraud is being uncovered in significant sized Chinese companies.

It comes as no surprise to me that China is in trouble because it is part of the global debt Ponzi.  You cannot get as big as China has become as fast as it has happened unless high leverage and scammery is involved.  A fraudulent money system has pushed honest people to the sidelines.  They have been bulldozed by the force of money that doesn't have to be worked for before it is spent.  You either get in line with the con or you become irrelevant.  This is the lesson of the last 70+ years and especially so since 1995 when the criminal traitor Greenspan removed all the safeties on bank reserves with respect to leverage.

The coming problems for China are obvious.  The people are poor.  They have no fat on their bones literally or economically to weather hard times.  When their economic Ponzi collapses the people are going to take to the streets in force and the Chinese leaders will be in great fear for their lives.  No amount of military presence is going to matter.  We've already seen worker-slaves kill themselves in many ways including throwing themselves out of factory windows to protest working conditions and this was/is happening when the boom has not yet turned to bust.  People with that mentality are not going to be put down by any amount of military presence.  Huge masses of hungry people with nothing to lose cannot be swept aside so easily.

We've all heard China referred to as an "economic miracle".  Well, as I have posted in the past many times, that phrase is elite-speak for "debt Ponzi".  Lots of people think China is rich because the US owes it trillions but it is as broke as anyone else.  If a deadbeat owes you money that will never be repaid, are you rich?  China has used the illusion of wealth to borrow money from others in order to fuel its real estate bubble.  This was needed in order to create otherwise unneeded jobs for workers.  Without those jobs the workers will spend their energy in other ways.  Bad ways.

An underreported problem regarding the coming Chinese bust is that it is the last great hope of the world that we will have a "soft landing".  Everyone knows that Euroland, Japan, and even the USA are all screwed economically but as long as China is growing like crazy people believe that there is hope for the global economy.  A good example of this is the big spending going on in Australia and Canada based on Chinese commodity purchases.  If these commodity exporters had one Troy ounce of historical perspective they would be saving during this time with the clear and certain knowledge that it is a bubble.  Boom will turn to bust.  Those who spent their commodity earnings as if a boom was normalcy will be very sorry in the coming years.

If you still don't understand what is really going on globally then now is a good time to pay attention because the truth of the matter is so very simple.  It's only a sea of noise that makes it hard for the rank and file to understand.  The world is in the trouble that it is in because of one main thing: a dishonest money supply that is based on fiat currency and fractional reserve lending.  PERIOD.  Get rid of that one element of global living and the free market will sort out 90% of the remaining problems on its own in short order.  The dishonest money supply forces good people to be dishonest.  It forces them to take a "me, me, me" attitude.  It sends signals to the herd that bad behavior is rewarded and good behavior is for suckers. 

When you see Ron Paul focusing on ending the Federal Reserve, his goal is to create an honest money supply because he knows that dishonest money is the major cause of our problems globally.  It creates wars, bubbles, imbalances, fraud and poor moral values.  It is the destroyer of families and of faith.  It leads people to worship money and power and to wrap their whole lives around the pursuit of same.   None of the other candidates are saying this.  They do not want to end the Fed.  They want to work within the scam and to prosper personally from it.  They laugh and roll their eyes at Dr. Paul for having such lofty ideals.  They don't want change, they just want a different spin on the status quo. 

Please keep this in mind at the presidential polls in 2012.  If you don't vote for Ron Paul then you can simply expect another lost decade for America because that is what the statists want to happen.  They want to hang onto the power and prosperity that they have stolen from the American people through guile and sophistry.  Seriously folks, you will have no grounds to complain about anything if you don't support the only honest person who is running for presidential office; the only honest person in congress who has been telling us for decades that this day of reckoning would come.  Without a doubt, that person is Dr. Ron Paul.  Nobody else can touch his long running congressional track record for voting on principle.  He walks the walk.  Ron Paul is a life long champion of honest money, liberty, personal privacy, small government and of course, the US constitution.