China's manufacturing is said to be going at half it's capacity. Which is enough, in my opinion, to really F up the world economy, we'll see. I think we're just waiting for the shock wave to hit. Great idea, linking every nation's finances.
When we commented earlier that the coronavirus pandemic means that the vast majority of Chinese small and medium enterprises (SMEs) have at most 2-3 months of cash left, a potentially catastrophic outcome that will not only crippled China's economy but its $40 trillion financial system, we summarized the circular quandary in which Beijing finds itself, to wit:
... unless China reboots its economy, it faces an economic shock the likes of which it has never seen before in modern times. Yet it can't reboot the economy unless it truly stops the viral pandemic, something it will never be able to do if it lies to the population that the pandemic is almost over in hopes of forcing people to get back to work. Hence the most diabolic Catch 22 for China's social and economic system, because whereas until now China could easily lie its way out of any problem, in this case lying will only make the underlying (viral pandemic) problem worse as sick people return to work, only to infect even more co-workers, forcing even more businesses to be quarantined.
Shockingly (or perhaps not at all in light of China's tremendous human rights record), Beijing has picked output over life expectancy, and in a furious scramble to restart its economy, which as we showed earlier remains flatlined...
"Destroying the New World Order"
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