A sobering assessment of China’s economy reported by Matthew Robertson:
Larry Lang, chair professor of Finance at the Chinese University of Hong Kong, said in a lecture that he didn’t think was being recorded that the Chinese regime is in a serious economic crisis — on the brink of bankruptcy.
The youtube audio requires translation:
http://youtu.be/comHcv7qSBg
Robertson summarizes Lang’s assessment into five key points:
- The regime’s debt sits at about 36 trillion yuan (US$5.68 trillion).
- The real inflation rate is 16 percent, not 6.2 percent as claimed.
- There is serious excess capacity in the economy, and private consumption is only 30 percent of economic activity.
- Published GDP of 9 percent is also fabricated. According to Lang, GDP has contracted 10 percent.
- Taxes are too high. Last year, direct and indirect taxes on businesses amounted to 70 percent of earnings…..
via Chinese TV Host Says Regime Nearly Bankrupt | Business & Economy | China | Epoch Times.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.