Also published in The Sunday Guardian The two Ponzis will slow down the Chinese economy and curb its global influence. China will have to find a new economic model to grow. Glitzy real estate and high profile BRI were shining beacons of China. They are now debt fuelled twin Ponzis. At their heyday both were symbols of Chinese growth, wealth and increasing influence in global affairs. As China registered its lowest slowest growth in recent times (which might actually be in the contraction zone), both these Ponzi schemes threaten to pull it further down. A Ponzi scheme works as long as it is accelerating and its circle/chain is widening. The collapse starts when its input feed freezes. As long as China’s economy grew at an astronomical rate, it was all hunky dory. When the economy slowed, the incoming cash streams fell way short of the increasing arc of cash requirements to sustain these Ponzi schemes. The First Ponzi – Property The propert...
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