Although today’s economic news of a pretty much static inflation situation – prices down .1%, but add in food and energy and up .1% – isn’t very comforting in the light of other economic news.
Oil crossed $100 a barrel and should that continue, it will send the cost of things up again. Say hello to rising inflation.
Europe might already be in recession according to some experts. Mish’s global economic analysis points to a declining GDP in Germany. Spain looks to join Greece and Italy in defaulting fears. Spanish unemployment is at 22% and in Italy more people are on retirement than are working. Where will the money come from?
Evidently not from China. In the YouTube video below, professor of Finance at the Chinese University of Hong Kong Larry Lang had some dire predictions. In a lecture he didn’t know was being recorded, Lang said “the Chinese regime is in a serious economic crisis – on the brink of bankruptcy.” He goes on to say that every province in China is Greece.
What brings him to these conclusions? First, he says the Chinese debt is $5.68 trillion with the real inflation rate at 16%. Manufacturing has plunged and the GDP of 9% is a lie. Lang says it has decreased 10%. Taxes are too high. Indirect and direct taxes on business amount to 70%; to individuals it’s 81.6%.
“Once the economic tsunami starts, the regime will lose credibility and China will become the poorest country in the world,” Lang says.
Doesn’t it seem that Madoff is the poster boy for today’s world?
We’re in for some stormy economic seas.