China’s Economy Has a Bigger Problem Than Taiwan
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The economic factors holding China back. I have gotten into it, not anymore, because I don’t go on the programs anymore. You know, Gordon Chang’s of the world and and many others that every day, you know, they you know they keep beating the the same drum and China bad, China bad, China gonna invade, gotta worry about China, China take over Taiwan, China, China, China, China, China. And can hype.
try very hard to see their point of view and spent a great deal of time studying China, their their history. And we’ve also talked about for years the problems internally with China and their economy. latest numbers, and again we told you this was taking place consumer spending
in China declined for the first time in th three years and it’s been weak. Now it’s going backwards. And these these are numbers coming from the Chinese government. What does this mean and why is this important? Well I’ve been trying to explain this to people for some time. You have this economy that is obviously reliant on exports. Reliant on exports.
if you are as reliant on exports as China is, do you think it’d be wise to invading countries, to starting wars? Do you think you you might you might upset the Apple cart and upset the people that you’re doing business with, your customers? Probably not.
Exports have driven much of China’s economic growth momentum this year. and again, it’s it’s caused a trade imbalance. Europe is none too happy about it. They’re actually even talking about autos here in Europe and coming up with a made-in-the-eu type of a situation. weak domestic demand in China is crushing them. And we’ve talked about.
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The real estate market is still in the toilet. Like I I have explained this for the past several years here on the program. They, you know, their real estate problem made ours in the Great Recession look like a, you know, nothing, a mosquito bite in comparison. retail sales gauge of household consumption fell 0.6% from a year ago. This is from
China’s Statistics Bureau, which means it’s again, it’s shaded to the positive, meaning it’s much worse. Not to mention, investment within the country is falling off. Yes, their industrial output continues to chug along. Again, it needs to sell stuff.
The bifurcation between export strength and domestic weakness has been labeled two-speed growth by some economists. This is from the Wall Street Journal today. Two-speed growth. you have to have a balance within your economy, and they’re a long way off. And again, this is one of the reasons why I am on the other side.
the co when it comes to the Gordon Chang’s of the world and and many others that keep warning us that there’s gonna be this massive war. Why why would China shoot at us, their best customer? Why would China shoot at the European Union, another one of its top customers, when they’re reliant upon it? There’s no logic or reason
behind that. And again, I I keep looking at the Taiwan situation. Yeah, we, you know, we’re providing with them weapons, even though again, they they they still have a lot more than get. China we all know that China could roll into that place and overnight and it probably, you know, would be over very, very quickly. Based upon how we are stretched at this point in time, why wouldn’t they do that?
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I mean, it’s from a strategic standpoint. Wouldn’t it make sense for them to do it now if they were going to do it in the first place? Yeah. So again, I’m just using you gonna you’re gonna refute me on this. I’m just using logic and reason based upon this. Do I think that China wants to assimilate Taiwan? Yep. Yep, I do. But
Based upon their economic situation in the country.
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How would they make ends meet? How would they make ends meet if they ticked the world off and they started a war and started going after their best customers? How would they pay the bills? How would that work? Watchdog on wallstreet.com.
