Tuesday, April 11, 2017

The insanity of Liberal Logic.

It always amazes me to hear intelligent, well educated liberals speak about economic matters.  They say things so matter-of-factly without any regard for math, history or logic.   Case in point is this recent story about China's 9 trillion USD Ponzi scheme that it is running using the savings of its people.  How do I know it's a Ponzi?  Well, for starters, the exponentially rising chart is a clear give away to the fact.

But I wouldn't really even have to see that in order to know what was going on.  All I have to do is think about what the 29 year old know it all public relations girl interviewed for the article said:
  • Yang Mo has no idea what’s in the wealth management products that make up a big chunk of her net worth.
    •  Interestingly, she doesn't even care to know.
    • This is her mindset even though she acknowledges that the WMPs are wild speculators.
  • Why is she so confident in her WMP?
    • Simply because of her belief that "the government would never let a big one fail".
    • She justifies her thought because letting a big one fail is "not even Chinese culture". 
    • Besides, she can always exit quickly if a big one fails..
If you don't get it, then consider this: liberals don't believe in G-d.  They believe in government.  Government is their all powerful G-d.  A Christian G-d you cannot see; but a government you can see.  So this little 29 year old gal has faith in government and faith in China's fake money Ponzi scheme economy.  She sounds just like every other victim of a Ponzi scheme that ever was.  The main ingredient in any con game is confidence.

And that bit about "allowing" failure being un-Chinese is just classical liberal herd think.  Forget the math.  Forget the fact that the economy and its WMPs are bigger than the government by far.  Forget the fact that her WMP will collapse faster than the twin towers on 9/11 once all the little fools like her go running for their money.  The liberal notion that they will just step off the falling cliff back onto solid ground AFTER the cliff has already fallen away reminds me of a Road Runner cartoon episode.

What these poor saps really don't understand is that the fundamental reason why few of them will get paid anything is that THEIR MONEY ISN'T THERE!!  The money has been spent on high risk illiquid junk debt, much of which will be defaulted upon.  And let's not even consider the fact that the article says the Chinese government is already drafting rules that allow them to stand on the sidelines and watch the collapse once it starts.

Note that I said intelligent and not wise.  The opposite of a wise person is a fool and you know what eventually happens to a fool and his money. The Chinese government has little choice but to keep dancing until the music stops.  When that happens and the people have to be told their savings are gone then you already know which ones will be the loudest complainers.  It will be the liberal little know nothing girls who blindly trusted government because they know nothing about economics OR human nature.

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