What's this? China going bankrupt faster than U.S.?


WASHINGTON – Here's a shocker.

China is going broke faster than the U.S., according to economic planner Kirk Elliott – who is making this point the lynchpin of a live webinar he's conducting for WND viewers today at 12:30 p.m. Eastern.

Here are some shocking facts Elliott discusses in a WND column today on which he will expound during the webinar:

  • China's debt is about $36 trillion yuan (or $5.68 trillion USD). This number is astronomical considering that it is just a little more than one-third of the U.S. total debt, but the difference between the U.S. and China is that the U.S. national income per capita is $47,140, whereas China's national income per capita is $4,260 – not even one-tenth of the U.S. amount. To be on par with the U.S., China's total debt should be around $1.5 trillion USD, but it is three times that! Considering that the U.S. has an unsustainable debt position, China's is ridiculously out of control and puts that country in extreme danger of a financial collapse of epic proportions.
  • China's officially published interest rate of 6.2 percent is fabricated. In reality China's inflation is 16 percent. This is eerily similar to the United States as well. The U.S. official inflation of around 3 percent is nowhere close to unofficial inflation estimates of 10-13 percent. What does this mean for China? This means that cost of living, wages and cost of goods sold in China will have to rise, and instead of exporting deflation, China will be exporting higher priced goods, thus affecting the rest of the world that purchases its goods. The world is on the verge of an inflationary cycle like we have never seen. Additionally, central banks around the globe are printing money on a massive scale to try to stimulate liquidity and spending (this is the definition of inflation!). Add to this a rising price structure in China, the major exporter to the world, and we could be preparing for a global hyperinflation.

... and more in the full article.

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toddtomlinson's picture
toddtomlinson's analysis:
China holds a significant amount of US Debt. If they crash we're in serious trouble. Three years ago a friend of mine went on a trip to China and was shocked to see that 50% of China's factories were closed and the other 50% were running at 50% capacity. He's a big Wall Street investment banker and was shocked by what he saw. Its only gotten worse as the global economy continues to falter. There are a few good comments on the original article that talk about how China's economic collapse sets up the scenario where the IMF becomes the one-world-order bank by default - setting up what we all know is going to happen. Amazing to see it unfold before our very eyes.

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