Saturday July 19th, 2025
The collapse of the Chinese economy is speeding up and will soon reach free fall velocity.
It will have enormous ramifications.
The implosion of the real estate sector will see a ripple effect that will collapse every other part of the economy. Vast amounts of capital will flee the country – by hook or by crook.
The ordinary Chinese people will rise up in a violent rage and the Communist Party will cease to exist. The Party has only been allowed to continue because of the continuous prosperity brought about the free market policies of Deng Xiaoping. That has now been destroyed by the inept, total control, policies of Deng’s successors, most notably Xi.
Will Taiwan, in a delicious irony, then take over mainland China and give it a truly democratic future? I think that is the most likely outcome. Is Taiwan a province of China, or is China the homeland of the legitimate government of China which was forced into exile by the Red Horde in 1949? The latter is, of course, the true situation. The age-old dream of Chiang Kai-shek to one day return to the homeland may finally come true. Not him personally of course, but the true government of China.
Elsewhere, the US$ will strengthen significantly as it retains, for better or worse, the perception of where to go when ‘flight to safety’ is needed. It is also the currency that the vast majority of the world’s US$300 trillion+ debt is denominated in. That debt causes a huge demand for US$s to service it – demand that will increase and add enormously to the dollar’s strength. Eventually, even the mighty US$ will collapse, but it will be the last to do so, not the first.
The EU will finally collapse under the weight of its own ridiculous fantasies of becoming some sort of windmill driven super power. The beautiful old cities, such as Vienna (where I currently am) will become sad testaments to the determination of governments to destroy all that is good, beautiful and decent. The grand old buildings from an earlier age will become squatter’s slums.
There will be a massive surge in the price of Gold in all currencies.
Gold has not even begun to factor in the fragile state of the world economy and the fiat currencies which underpin it. The collapse of the Chinese Yuan will impact other, already precariously poised, currencies.
A major revaluation of Gold (and silver of course) will happen. At the bottom, still years away, the price of a house will be measured in ounces of silver, not Gold.
The fiat scam is drawing to its inevitable conclusion. Swap your fiat for Gold and/or silver, but only after you have bought bulk non-perishable foods and hidden them away.
The world is changing. It always does of course, but this change will come suddenly and will be catastrophically destructive of the current way of life.
I do not wish to write about the implications of that because it is too grim.