Over the past few years our think tank has believed that China has painted itself into a corner due to its currency manipulation and bad economic policies, well that and the corruption in the banking sector, and the state-run capitalism challenges of trying to call the shots for free-market enterprises.
Indeed, it doesn't help China in the long-run to suck their best customers dry either, and the trade deficits the way they are creating an unbalanced global money flow, which is unsustainable.
Now of course, it's time to pay the piper, and things are going to be problematic for the communist nation with 1.
3 billion mouths to feed.
It's an overwhelming task just to keep track of it all, not to mention attempting to plan for 10% year-over-year growth when China is going to need to produce more and more, but the global markets are finite, and the biggest markets are barely growing or in the case of the EU contracting, in fact the European consumers fell off a cliff it appears.
There was an interesting article in Industry Week Recently titled; "China Braces for Social Unrest as Economy Slows - Analysts have warned that China's huge army of factory staff -- many of them migrant workers -- will be the first to feel the effects of the global slowdown.
" The article appeared on December 5, 2011 and looks like it was re-printed from Agence France-Presse the previous day.
The piece stated: "China's security chief has told provincial officials they need to be more prepared for the "negative impact" of slowing growth, a slowdown that could bring social unrest.
Large-scale strikes have hit China in recent weeks.
Workers resentful on low salaries or lay-offs face off with employers juggling high costs and exports hit by lower demand from the debt-burdened West.
Authorities need to improve their system of "social management", including increasing "community-level" manpower, "In the face of the negative impact of the market economy, we have not formed a complete system of social management," and "It's urgent we build a social management system with Chinese characteristics to match our socialist market economy.
" Manufacturing -- a key engine of growth -- slumped to its lowest level in nearly three years last month, amid slowing demand from the European Union and the United States.
" Wow, that sure sounds drastic indeed, economic chaos, civil unrest, a communist government, and not enough customers.
China tried before to build just for the sake of building, but in doing so they caused inflation, corruption, and bad loans.
So now they are going to get wage inflation anyway, economic challenges, missed growth goals, angered trading partners, and egg on their face.
It's not going to be pretty.
And what is China going to do when 1.
3 angry people come calling? If China hits the skids and falls into a civil war, it could be much worse than that of the Arab Spring, and the potential loss of like would be completely unthinkable.
Today, China is considered one of our favored trading partners, even if they have not been completely fourth coming.
Now it might be too late for them to change to save themselves and also to do the right thing.
Please consider all this and think on it.