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Sunday, 04 May 2014

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I do hope this is not another case of crying wolf as so often I have read with glee Zero Hedge's many apocalyptic predictions. Only to be disappointed when they fail. Like this analysis all their predictions appear to be based on solid evidence on the cause but not on the effect. Maybe this time they will be proven correct and if so I will be happy as that will feed my pessimism and prove me right in my belief that the world is going to hell in a bucket. However the prediction this time if correct will be catastrophic which will lead me to become hopefully optimistic that the situation will quickly be contained as no doubt I with everyone else will be badly effected by it.

I'm not unsympathetic to your scepticism, Antis. Zero Hedge is rather like the man who keeps shouting that there will be rain on a bright summer's day. In the end he's bound to be right but it's not exactly useful intelligence. However, in this case his source offers two pieces of tangible evidence. First there are all those empty cities, and second, there is the fact, attested to by the WSJ, that ordinary business corporations are now using their cash reserves to offer high interest loans to other businesses. Now that is highly dangerous.

And there is a third factor that should not be discounted, China is a one-party dictatorship. Politicians are more or less stupid the whole world over but when they are unaccountable, and when they have their own personal wealth on the table, that makes them very dangerous as well as stupid.

I've read Zero Hope a number of times and am still not dead. David Stockman's long piece is in keeping with what I posted on your "me no likee look of tings" from last week.

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