China ready to crash; new middle class forming in USA

usa government spending graph

“China is “on a treadmill to hell” because it’s hooked on property development for driving growth, Chanos said in an interview last month. As much as 60 percent of the country’s gross domestic product relies on construction, he said. Rogoff said in February a debt-fueled bubble in China may trigger a regional recession within a decade.”

Investor Marc Faber said China’s economy will slow and possibly “crash” within a year as declines in stock and commodity prices signal the nation’s property bubble is set to burst.

The Shanghai Composite Index has failed to regain its 2009 high while industrial commodities and shares of Australian resource exporters are acting “heavy,” Faber said. The opening of the World Expo in Shanghai last week is “not a particularly good omen,” he said, citing a property bust and depression that followed the 1873 World Exhibition in Vienna.

china exponential growth on the back of US dollar

“The market is telling you that something is not quite right,” Faber, the publisher of the Gloom, Boom & Doom report, said in a Bloomberg Television interview in Hong Kong today. “The Chinese economy is going to slow down regardless. It is more likely that we will even have a crash sometime in the next nine to 12 months.”

New middle class forming in USA?

Right now the USA is trying to create “big government” socialism to move Americans from the private sector into government jobs and hopefully create a new middle class from this but also creating a huge low class to fund it.

This is also being done to accommodate communist China’s need for new American consumerism to keep their empire spinning. If the Chinese run out of buyers for their products the country will explode. Indeed, it is obvious this USA/China relationship can’t continue. North Americans have no tangible cash anymore to be consumers and their credit is drying up because the jobs they do have don’t pay well enough to sustain heavy taxation, live on or pay credit and interests.

China has to adapt itself into a structure with its own viable middle/upper class consumers to keep a sector of its lower class workers happily working and making money to keep civility or it will all come crashing down. The way they work now manipulating the yuan and relying solely on exports is leading to nowhere. They’ve got to evolve because we in America and the rest of the world can’t be the solution for them to stay status-quo. They’re only fooling themselves like a teenager believing in Santa Claus.

Like Greece, Canada cannot “create” a false middle class in the government sector using the average Joe minimum wages taxes. The average Joe already lives in poverty and business and political elites created the crisis in the world today by allowing China to rifle all our mid class manufacturing jobs. Very stupid move on their parts!

usa government spending graph

China is counting on the North American consumer’s buying pace to “never” end. But it will end and then they’ll be in real trouble when the factory orders stop and exports dry up. It’s like they want to keep milking a cow not realizing the cow has run out of milk. Where will they get their milk as they angrily look to each other for an explanation to what happened and then the blame game starts into a warring feud.

When North America’s tangible cash dried up the Chinese backed our credit cards. When that goes bankrupt..what’s their plan after that? Will their own population be content in sitting around starving without work? See the picture and where this is all headed?

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