Wednesday
“With unusually heavy rains causing vegetable prices to soar, China raised concerns about supply shortages, leading the government to tell families to keep daily necessities in stock in case of emergencies.” HERE
The food shortage is far more profound than that caused by heavy rain, but it seems that the Chinese government is being more honest with its people than other governments. The West crosses its fingers, grandstands about inconsequential matters and hopes that the real problems will magically disappear.
It is the same with Evergrande. It would appear that the Chinese government is prepared to let Evergrande collapse and, in that manner, send a clear message to the market that the government will not be the backstop for every damn fool speculation that goes wrong. They want to fix the problem of past profligacy now, before it becomes any worse. Western central banks and governments are still playing kick the can down the road and pretend that everything is fine.
Everything is far from fine in the world. Food stocks are low and prices are soaring; energy stocks are low and prices are soaring. Supply chains were irreparably broken by mandated lockdowns. National debts cannot be serviced, let alone paid. What is it about those four crucial factors that people cannot understand?
Governments have spent like drunken sailors at the bar on a Saturday night. Now, as midnight approaches, they are staring blankly at a tab that cannot be paid. The collapse of the debt means the collapse of paper money. The collapse of paper money means the collapse of jobs. The collapse of jobs means that there will be no money for food or petrol.
Oh, that’s right, that won’t matter because we are running out of food and petrol.
I truly do feel like Cassandra at times.