Sunday, July 21, 2013

When the Chinese Economy Crashes (And It Will)....

...don't for a minute allow lefties to proclaim it was a failure of free markets. No less a lefty that Paul Krugman knows exactly what is going on in China:
[T]he current leaders of China may not be bad men — I really have no idea — the fact remains that we’re talking about a dictatorship, and one that by all accounts enables epic corruption too.[...] but “not as bad as Stalin” is not, exactly, an inspiring slogan.
There are pockets of free market activity in China, which is to the good. But there is also a massive amount of central planning fueled by massive amounts of money printing by China's central bank, the People's Bank of China. The PBOC has slowed money printing of late because of fears of igniting near run away inflation. With the slowdown in money printing, the current manipulated structure of the economy can not survive. The collapse is coming.

1 comment:

  1. They'll claim it was capitalism (capitalism, free market, whatever). They'll say China never collapsed under communism. And then they'll say: no, millions of people dying from starvation does not count as collapse. Besides, that wasn't due to economics.