The Chinese have no intrinsic immunity to recession

Can the Great Chinese Wall really protect Keynesianism from the ravages of true economics? What happens if it doesn’t?

The Frontiersman, John Embry, is back on King World News with a bang. Here’s the highlights of his Austrian-based analysis (my additions in brackets):

  • Italy is next, after Spain, and then France, as each requires a massive ECB bailout (funded through paper money printing)
  • Although the Chinese will dominate the century ahead, they are not immune to short-term recessions (because the stupidity of Keynesianism applies inside China as much as it applies everywhere else)
  • Within two to three years, we will hit Global Financial Event II, and this will probably end with hyperinflation (so get yourself ready, as Jeff Berwick says)
  • The global money printers will get together to stave off this crisis with massive amounts of money printing (hence the hyperinflation)
  • The only other ‘solution’ is to wipe away the debt and to let the debt-holders take the hit, but this will cause massive deflation, hence the global elites (whose masters hold all of this debt) will go the other way and choose hyperinflation, instead (to buy time for themselves, while they divest their debt into real assets)
  • There is no easy way out of this (due to 41 years of economic misallocations which need to be corrected, following the creation of a world paper fiat money standard)
  • Gold, silver, gold miners, and silver miners, are your simplest route to financial salvation (but with the miners be careful who you invest with, and with the gold and silver, make sure it’s physical, stored in your name, and stored with someone who you would trust with your life and outside of the banking system controlled by the global elite)

Here’s the podcast:

About Andy Duncan

An Austrian Internet Vigilante trying to live Outside the Asylum
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1 Response to The Chinese have no intrinsic immunity to recession

  1. Dinero says:

    A debt default is infaltionary event if the money owed originated at the central bank. This is because if the money is repaid then it is taken out of circulation, but if defaulted it does not.

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