China is Collapsing --- Again

This is another doom and gloom analysis of the Chinese Economy. Right on time every year.  This was a year ago. 

In several prior posts last year I wrote that China might be playing the slickest game of all and winning big time the more that the critics are saying that China must fail.  They must fail by the rules that dictate our game.  I think that China is playing a game of their own in which we are the players who think we are playing our game by our rules.  When the game is over.......

.......and that is exactly when everyone sees what real game is being played and who owned the game and new rules that made China the winner and the US the loser.....

China will have the best monetary system.  The People's Bank of China is a state bank.  It does belong to the People.  China is winning we are losing.  China is changing the monetary system.  In my prior post I proposed a small island to test a new asset based, debt free money system where loans are something asset money (free of its liability related negative self) does, not what money is.

If the People's Bank of China can simply make negative money disappear by saying a governmental entity does not have to repay a debt then have they not accomplished the creation of debt free money by a back door maneuver?  Repayment of a loan extinguishes money.  It goes back to nothing.  If the obligation to repay is extinguished then the money lives forever only to be consumed by inflation????  Is that how it works to change a debt money system to a debt free system.  Maybe the way to control inflation is to make other countries eat the results in their currency?  How could that be done.

Ahhh soooo.... Chinese are very clever people.......

Good for the Chinese.  While we have our knickers in a knot about debt they are certainly laughing at our ability to fight ourselves until they win the war.  That is an elegant way to wage war.  The best way to skin a cat is to cause it to jump out of its own skin

One of the readers comments as follows and others express the same thought:

johnslattery

• 6 hours ago

The autumn winds howl, the leaves are falling, and AEP puts out the DT's seasonal China collapse story. Was there anything worth reading in it? I didn't bother myself, because it is always the same story--securities analyst or OECD bean-counter finds alarming numbers, AEP cries apocalypse, and then nothing happens. Been through this cycle what, 30-odd times now over the last decade?
Facts: Rural wealth is growing fast, labor issues are diminishing, car ownership and universal healthcare are spreading nationwide. Hate to disappoint all the China-haters who have seen their hopes dashed so many times, but the economic picture remains fundamentally bright and will remain so for another decade or so. You only have to go there for a week to understand that.