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:
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 founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
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.