By Gurvinder Singh
Few people realise that the successful rebuilding of countries like Germany, Japan, after World War II, and the subsequent spectacular growth of ASEAN countries and now China have all come about mainly due to American support and patronage.
All these economies have achieved their growth and prosperity by exporting primarily to the American market made available to them on favourable terms. In addition they have had access to the best technology, human resources etc. enabling them to develop on their own.
Most importantly they were all financed primarily by American money and global financial capital.
Thanks to America, China, over past 3 decades has received over US$ 55 trillion of funds. These include,
- US$ 40 trillion of mainly external debt (https://in.reuters.com/article/us-china-economy-debt/chinas-debt-tops-30…)
- Capital invested in China via American and global capital markets is US$ 14 Trillion.
- Foreign Direct Investment (https://en.wikipedia.org/wiki/Foreign_direct_investment) (FDI) in excess of US$ 1 trillion.
With that kind of walking around money, The CCP leadership has,
- Constructed world class infrastructure in many parts, of China which is essential to enable an economy to operate efficiently and effectively.
- China has used much of this wealth to subsidise all aspects of its manufacturing so as to drive all relevant global competitors out of business forever.
- Propped up gigantic white elephants, China’s [State Owned Enterprises](https://en.wikipedia.org/wiki/State-owned_enterprises_of_China) (SOEs) which provide the jobs, and lifestyle of China’s 90 million [Communist Party of China](https://en.wikipedia.org/wiki/Communist_Party_of_China) members.
Any nation on a diet of very heavy steroids for long periods of time is at its core is nothing more than a giant Ponzi scheme, and therefore a weak economy. This is why we can say the Chinese economic miracle is fundamentally a beautiful bubble, one which has been gradually deflating and soon about to burst.
China has been riding high on for too long and has have created the worlds largest but unsustainable economy.
Propaganda and glitzy, impressive infrastructure, driven excessively by unsustainable debt, (300% of its GDP) gives the world the illusion that China is a superpower. [America too has huge debt](https://www.thebalance.com/national-debt-by-year-compared-to-gdp-and-maj…) 120% of GDP) The difference is American Dollar is a ‘fiat currency’, while the Chinese Yuan is not. A Fiat currency permits America (which the world grudgingly trusts) to print money at will with limited adverse consequences, something the Chinese Yuan cannot do.
A financially unsound economy, managed by a parasitic leadership, even with infrastructure and puffed chests by themselves, do not an empire nor a superpower, make.
Borrowed capital must be repaid with interest, even for China.
Since China has used its capital rather wastefully. With so much non performing assets, China services its debt, by borrowing even more money. The 2008 global financial meltdown was tackled by China by a huge financial stimulus (more debt for more useless and economically non-performing projects). To get an idea, China has poured more concrete in 3 years than America had done in an entire century.(https://www.independent.co.uk/news/world/asia/how-did-china-use-more-cem…)
The CCP has been successfully consuming increasingly massive doses of steroids for too long a period. Even steroids have limited effect after their use has been abused.
China is running out of economic stimuli options, even though it keeps up its massive borrowings and sinking deeper in debt.
Ask any doctor and you will learn that an entity that consumes excessive steroids will perish painfully. Before that it will experience, extreme anxiety resulting in psychotic, aggressive, hostile and violent behaviour.
Ability to function and extreme anxiety set in before excessive steroid abuse leads to multiple organ failures, shock, coma and death.
The CCP has slaughtered 70 million of their own people in 70 years, trampling over not only the Chinese people, but much of humanity and nature. Its human rights abuses of the people of Tibet and Xinjiang are notable examples.
Is it any wonder that the CCP at its core is hollow and fearful?
China’s CCP so insecure that it spends $196 billion per year in expanding, operating and maintaining a gigantic surveillance state, to focus on internal security, born out of its fear of its own citizens and to monitor and control its own people, almost 20% more than it spends on the military.
The Chinese economy is till very, very big but it is now in terminal decline. The CCP in its craving to retain power, at all costs, is driving itself to its doom.
The price to be paid for its many sins, humanitarian, economic, political, social and military is now visiting China.
China’s brazen approach to its neglectful and seemingly unconcerned management to control the Coronavirus pandemic has infuriated the world who are now united against China, triggering a domino effect.
No party or country can remain a political, economic or social island. The laws of Karma, states that there will always be related consequences for actions taken.
The CCP is rapidly discovering, that if you disrespect people, society, friends, associates and well wishers, no one will come to your support when the chips are down, not even your own citizens.
We are already witnessing the beginning of several organ failures of the CCP.
It is a tragedy of what China could be but its a boon for humanity, that an evil regime will soon meet its end.
‘He who chooses to ride the tiger can never dismount’
*Gurvinder Singh is a widely travelled and experienced former industrialist who devotes his life to awaken himself and by association others to make the world a better place. He can be contacted by email [email protected] and web site www,guruwonder.in
[What’s China’s Secret Source Of Funding?](https://www.forbes.com/sites/peterpham/2018/02/12/whats-chinas-secret-so…) – Forbes
[China’s debt tops 300% of GDP, now 15% of global total: IIF](https://in.reuters.com/article/us-china-economy-debt/chinas-debt-tops-30…) – Reuters
[Xinjiang re-education camps](https://en.wikipedia.org/wiki/Xinjiang_re-education_camps) – Wikipedia
[Why You Need To Know About China’s Atrocities In Tibet](https://www.skillsphere.org/global-jigyasas/chinas-atrocities-in-tibet/)
[Detailed Timeline of what actually happened and when as regards CCP Virus](https://www.centerforsecuritypolicy.org/wuhan-virus/) – Center for Security Policy
[Collapse of China Explained By Chinese American Lawyer – Gordon Chang](https://www.youtube.com/watch?v=IYjeO_n9vQw&t=868s)
[Coronavirus Coverup: Why Did China LIE?](https://www.youtube.com/watch?v=Svrj6Bw5K9A) – China Uncensored
[Stakeholders in several countries say ‘Make China Pay for Corona Virus’](https://www.youtube.com/watch?v=Iq5Iqg6qG0M) – Wion News