Loading ...In my 30 years of studying Bubbles, a few things have become clear – I would argue indisputable: They always burst. During the Bubble, virtually everyone dismisses Bubble analysis, instead believing the boom is well-founded and sustainable. The pain on the downside is proportional to the excesses during the preceding boom. Tremendous damage is inflicted during the final “Terminal Phase” of excess.
The China Bubble has altered global inflation dynamics – it has fundamentally changed geopolitics and the world order. It has certainly played a prevailing role in a global backdrop promoting asset inflation at the expense of wages – in the process exacerbating inequality. And, increasingly, China’s ascendency on the world stage has spurred an extraordinary Arms Race in everything technology, industrial, military and geopolitical. In short, China has become the Global Poster Child for Unsound “Money” – with incredibly far-reaching consequences.
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