German Gas Supplies and Chinese overbuilt

 German Gas Supplies


Germany should be mindful of mechanization from far off US which is running the Ukraine propaganda war and loosing it. The key criteria is that Germany and others in Europe are dependent on Russian oil and gas supplies. Nobody in US can make up that loss of supplies. Even the Arabs do not have arrangement large enough to make up the loss of gas if Russia shuts down.

It is Biden war in Ukraine. Germany was cowed into it and so did others. It is Biden after loss of face in Afghanistan decided to reach the Russian border thru Ukraine’s plaines. It is mostly US war with Russia.

Russians gave the warnings by shutting down the supplies under the pretext of pipeline maintenance. People in Germany threw up their hands in disgust for loosing supplies of gas for somebody who do not matter except US forced the issue on Europe.

Now the Germans can relax. The flow in the pipeline has resumed.


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Chinese overbuilt in last 15 years


Chinese overbuilt just to get a head start on its GDP. They like big numbers and building with $9 trillion cash gave them big numbers. Yes, the Chinese cities which we see in pictures in fact were built to show off. About 80% of housing and more than 40% of commercial real estate is empty.….. no occupiers. Housing is only one sector; trains and roads is another sector which building them added to their GDP. They overbuilt these. Now bullet trains are running empty to nowhere. Most complicated road network exists but it is hardly used. There are many other sectors like that where building and building big/more added to their larger GDP. As I said earlier they love big numbers of GDP; they wish that by hook or by crook the number one spot in the GDP. In fact they reached their target or close to that unmindful of empty real estate or bullet trains to nowhere. Now comes the big issue ……. All that money used to building that ($9 Trillion) has to be paid back. The bonds on which much of China was built is coming due. Usually elsewhere the building spree yields returns, but not in China. Empty trains or housing or commercial real estate is giving no return to pay off the loans.

Hence big financial crisis is just about to unleash in China. It is a bigger than all the financial crisis put together which the world has suffered in last 70 years. May it be the South American financial crisis (Mexico, Brazil & Argentina) of late seventies, or Asian Tigers crisis of late nineties or America’s big financial crisis of 2008.

This Chinese financial crisis is so big that no IMF or World Bank will be in a position to rescue it. All the Chinese cash reserves in the west close to $3-4 Trillion dollars will be wiped out in a Jiffy, then some more.

I hope Chinese suffer that catastrophe sooner than later. That is only way to wipe out overinflated Chinese ego and their belligerence. In addition there should be a mechanism to deflate the GDP numbers if these are worthless construction.

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