BOOM FINANCE
You might want to book mark this site…really good IMO….from Brian A
https://boomfinanceandeconomics.wordpress.com/
HOLLY FOOK.. CHINA ! Ha !
Commercial bank loans in China in total, expressed in US Dollars, now amount to US $ 32.3 Trillion. The United States total is $ 12 Trillion. This stark difference is very much worth noting. The gap has been growing ever since 2010 when the Chinese bank loans total first exceeded that of the US total. That change occurred with the emergence of Barack Obama as President of the United States and the trend has continued ever since. China’s reliance on bank loans to finance their economy is a key strength and it demonstrates clearly that the Chinese understand the mechanics of money supply far better than the Americans. As bank loans increase, the supply of fresh new money increases which fuels economic growth and entrepreneurship. If CPI inflation is low and productivity is high, this can continue for many years. China’s annual CPI inflation rate is now around 2 %, close to its historical average over the last 20 years.
The US has lost its way dramatically since Barack Obama came to office in 2009 and the problem was not recognized or corrected during the Trump Presidency. BOOM expects the Biden Presidency to be even worse in grasping what the problem is and how to correct it. Unless America begins to understand what has happened to its money supply and its economy, it will soon fall behind China as the world’s major national economy. This is inevitable and will have occurred due to American ignorance – which seems to be the only thing growing in the US over the last 12 years.
Get Woke Go…..
Governmental emphasis on wokeism, weapons, war, imagined “health threats” and imagined “climate threats” will not help. The obsession with such virtual signalling has contributed nothing to the health of the economy.
In a report on the US economy dated 2021, the biggest contributor to GDP came from Wall Street – finance, real estate and insurance – the so-called FIRE sector. That amounted to 20% of the economy. By comparison, manufacturing was only 11% while agriculture, mining, utilities, and construction accounted for 8 % of GDP. Agriculture was less than 1%. The American economy is now close to 80% services based and only 20% goods based.
Chinese shadow banking run by CCP seems to be driving the global credit cycle.
The global recovery came after they reversed on the residential real estate industry there after the Evergrande meltdown.
Last I saw, prices there were 30x incomes vs 10x in UK, OZ, CA and closing on that in the US.
Well maybe all true BUT . . . If China sees USA-actions’ while having an understanding the system will blow off anyway then better be ahead of the curve and Print gazillions into oblivion and buy as much as possible with free (printed) money. Buy all the Worlds’ resources, PM, food, oil, etc. until it blows. Plain and simple strategy.