Meraglim Blog

Is This Good News About China Just Wishful Thinking?

Facebook
Twitter
LinkedIn

Andrew Sheng is one of the most astute and plugged-in analysts on the Chinese economy. I read his work on a regular basis and it is always worth the time and effort.

Sheng has been highly critical of many Chinese economic initiatives and has pointed out their flaws. In this article, he takes a more positive approach.

China’s main problem is that it over relies on investment and net exports to generate growth and does not pay enough attention to consumption. The investment is driven by borrowed money and much of the investment is wasted on white elephant projects and ghost cities. Net exports are propped up with a cheap currency. Neither the debt load nor the currency manipulation is sustainable.

Sheng points out that China needs to stimulate domestic consumption to pick up the slack from reduced debt, investment and exports. Sheng points to five mega-cities in China (centered around Beijing, Shanghai, Hong Kong, Macau, and Shenzhen). Sheng’s suggestion is that consumption from these and other urban centers can help the Chinese economy grow without resort to wasted investment and excess debt.

Sheng’s idea makes sense, but it’s unlikely to emerge as official policy. China is highly corrupt and the bribes, kickbacks and cronyism that drive the current system make it extremely difficult to dislodge that system in favor of something that makes more sense.

In the end, the current system will only be ended by a financial collapse and panic that causes officials to respond harshly and to redirect their economic efforts. Until then, get used to more ghost cities and empty transportation hubs.

Accredited investors interested in learning more about Jim Rickard’s private placement in the world’s first predictive data analytics startup that combines human and artificial intelligence with complexity science should check out his offering at Meraglim Holdings. Click the link to learn more.

QCI and Meraglim Join Forces to Deliver Capital Markets Risk Analysis Powered by QCI’s Mukai Quantum Computing Software Platform

LEESBURG, VA, December 1, 2020 – Quantum Computing Inc.(OTCQB: QUBT) (QCI), the technology leader in quantum-readysoftware development and execution, and the only public pure play in quantum computing, has partnered with Meraglim Holdings Corporation to deliver advanced capital market risk analysis powered by QCI’s performance-leading Mukai™ quantum software development and execution platform. As an industry leader in predictive analytics, Meraglim was the first

Read More »

IF THE SCIENCE IS NOT ON YOUR SIDE, JUST TRY THREATS

It’s clear that good science does not support the extreme claims of the climate alarmists. Yes, there is such a thing as climate change, but it’s slow, difficult to predict and almost impossible to model because of the complexity of the process. The climate alarmists have grabbed most of the headlines for the past ten

Read More »

WHY TRUMP WILL WIN REELECTION: NOT POLLS OR PUNDITS; JUST COMMON SENSE

Political analysts use polls, betting odds, historic trends and other inputs to make their (usually wrong) political predictions. We all remember that “experts” said Hillary Clinton would win the presidency in 2016 (they gave her a 92% chance on the morning of the election), and that the UK would vote to “remain” in the EU

Read More »

HERE’S ANOTHER ELITE WITH ANOTHER PLAN TO TAX AWAY YOUR WEALTH

The elites never rest when it comes to devising new ways to take your money through taxes, inflation or outright confiscation. The latest Trojan horse the elites are riding to take your money is climate change. The climate does change over long periods of time for reasons that are not well understood except that they

Read More »
Scroll to Top