Topic: China Runs Out of Money

[jpatrickham]

Thursday, 03 November 2011 06:34 The Daily Bell
    

"Companies' cash is drying up, with dire consequences for their workers ... Unpaid wages in China ... Efforts to curb inflation in China are having some painful side-effects. A squeeze on bank lending has prompted some businesses short of cash to stop paying wages to blue-collar workers. Even the much-vaunted state sector is feeling the pinch. Work has all but ground to a halt on thousands of kilometres of railway track, and many of the network's 6m construction workers have been complaining about not being paid for weeks or sometimes months. – Economist

Dominant Social Theme: One thing is for sure, the Chinese communists know how to run a capitalist economy and have done a helluva lot better job than Europe or America! Something about socialism really gives people the "smarts."  

Free-Market Analysis: The editors of the Economist "newspaper" – who never met a tin-pot dictatorship or dictator that they couldn't find some way to praise – have apparently "hit a wall" when it comes to China. That great hope of capitalism (Communist China) is broke and heading for a hard landing.  

After singing the praises of China and its vibrant "free market" for years, the Economist editors have now run smack into reality, giving rise to this squib of a story that indicates the ChiComs are hitting the proverbial brick wall when it comes to their hyperactive and impossibly stimulated economy.

We're not supposed to understand this, of course. It's an elite dominant social theme, after all, that the ChiComs' murderous command-and-control economy has much to recommend it that the West's anarchic and "free" economies (sarcasm off) do not. Here's some more from the article:"

http://www.rightsidenews.com/2011110314875/us/politics-and-economics/china-runs-out-of-money.html?

[Weisshaupt]

This article seems to be confusing cash flow with money.
China has loads of money.  They Have a cash flow problem as well.  The same could be said of our banks at the moment as well.
China has problems. The EU has problems. America has problems.

The real question is who will be the last man standing and can they convince others that their currency s solid enough to be (or remain)  the world's reserve currency.

[Sectionhand]

Since China has been undervaluing its currency for years , I wonder what their "hold card" might be .

[Libertas]

Since China has been undervaluing its currency for years , I wonder what their "hold card" might be .

A gun.