The Great Chinese Meltdown

God’s Word is both TRUTH, and declares what is true. The Scriptures do not lie. “Whatsoever a man soweth, that also shall he reap…” This is a principle fact. But it is a universal and comprehensive fact in that it pertains to all areas of life – even the market place.

Several months ago I offered 6 Economic Reports ( approx. 60 pages) dealing with the inevitable meltdown of the U.S. economy and how to survive its ravages. The reports contained historical information, links and resources that many are unaware of and much practical directives. The six reports sold for $14.95. I received 12 subscriptions.

For whatever reason, many who believed it unnecessary to read these reports probably also thought that they were either immune from the coming crisis, or well informed as to the coming crisis, and thus were already prepared for it.

Vitaliy Katsenelson, in his article “You are not as smart as you think you are”,  rightly declares, “Feeling smart makes you do the opposite of what you should be doing.” The fact remains, most of middle class America is in financial trouble. What is outrageous is that a majority of Chirstian Americans, despite the warnings in God’s Word, are also in desperate trouble.

We have recently witnessed the European meltdown in Greece. Sadly much of the American population refuses to beleive that the European meltdown is coming to America. Rest assured it is coming. The human race is not facing a Europena meltdon, but rather a Global meltdown as a result of un-Biblical and rebellious economic, monetary stewardship.

Even with the high rate of unemployment and American debt it seems as if it is business as usual and the money will always be there. It will not. The recession is not over. The recession has only begun to reve its engines of destruction.

Consider the most recent development. China. Seen by many to be economically solid, and the most productive nation on the global economic scene. It is now showing its true situation, and that situation is foreboding. Fractional reserve banking, massive debt through uncontrolled and un-Biblical borrowing, fiat money creation are all wreaking havoc upon the nations of the world.

The Chinese economic is now faced with their own gigantic buble. The reprint of Gary North’s comments on Vitaliy Katsenelson’s piece are enlightening to say the least. I thought it proper to give our readers a heads up.

April 24, 2010

Here is the site: http://ContrarianEdge.com. A great title. Easy to remember.

The creator/editor is Vitaliy N. Katsenelson. I had never heard of him before this week. That is my fault, not his.

He thinks straight. He is a no-nonsense “capitalist pig,” as he calls himself.

I have argued that China will crash. I have come to this conclusion through Austrian economic analysis. He has concluded the same thing through more traditional capital theory. The government is propping up the economy, but it is wasting money/capital on an historic scale, given the small size of the economy (a small fraction of ours).

He wrote an article last month for the Christian Science Monitor. It’s posted here.

He calls China’s economy a superbubble. I agree with him. Neither of us knows when it will pop. It will be a disaster when it does.

But what about the high economic growth? He and I agree: the government is lying. In the mid-1960s, I studied the Soviet economy. I wrote a chapter on it for my book, Marx’s Religion of Revolution (1968). That was when I concluded that the statistics were fake. There was enough evidence to indicate this. The statistics remained fake until 1989, when the economy collapsed. Only one economist called it, late in the process (1987): Judy Shelton.

I think the Chinese government is imitating the Soviet Union, on a much grander scale.

There is going to be a great stock market buying opportunity in China, assuming the society does not self-destruct in riots and secession, which is possible. Today, it’s the highest-risk economy on earth.

He has produced a PowerPoint presentation. These 20 pages are worth reading. Here, you will learn of the second largest mall on earth. It has been open since 2005. It is 99% empty. The largest mall is in Dubai. Now, that’s a one-two punch!

China – The Mother of All Black Swans – By Vitaliy Katsenelson

If you are interested in my 6 part economic reports they are still available. It is time to take some action. There is still some time left. That time is fading quickly. Contact pastor@hisglory.us

Coram Deo

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