YOU READ IT HERE FIRST: IT’S ABOUT OVER FOR CHINA

By 1990 Japan’s bubble had burst and while it remains the world’s second biggest economy, the country has undergone significant change, most of which is not for the better. Real income has declined over the last twenty years resulting in poverty and unemployment thus becoming huge a social problem. Deflation has impacted upon the domestic economy where the masses turned their attention to saving as opposed to spending. At least their major corporations realized that in order to preserve their businesses, they became multi-national and abandoned their local manufacturing base. The Sony’s and Toyota’s of this world continue to thrive as corporations but by changing direction at the expense of the Japanese worker.

China just makes crap for foreign multi-national corporations. Apart from Lenovo, (the old IBM laptop) I can think of no Chinese brand that has acceptance outside of China. If the truth be known, even local Chinese would rather be wearing a baseball cap Made in USA, rather than out of a local factory. By and large they hold a very poor image of Chinese made and branded goods. Geely might think America will fall in love with their cars when they are introduced here in 2011, but they will be in for a rude awakening. The world, except Fortune 500 companies, is heartily sick of anything Chinese and so are the Chinese!

President Hu Jintao may still be able to suppress the Internet and implore his populace to continue working for nothing, but huge cracks are starting to appear. The system is starting to break down. Honda factory workers are presently out on strike demanding social justice and everywhere there is an underground of discontent ready to surface. The housing bubble is on the verge of bursting and while that will affect the return of the new middle class back into poverty, the poor who have experienced zero benefits from China’s explosive growth have had enough. They never ever had the chance to buy a condo in the city. Like the Honda workers, they will withdraw their labor until they either get what they want or if they don’t, the country will collapse.

I have a bet on the country collapsing. Seriously, it couldn’t happen to a nicer bunch of ruling thugs, led by Hu Jintao. Those commies deserve what comes their way when they are hit by the new revolution. The poor of China (99% of the population) are actually in worse shape since China’s rise in economic power. I just hope they haven’t forgotten how to grow rice!

Tags: China, Hu Jintao, Lenovo, Sony, Toyota