Cheng Xiaonong: The Communist Party’s economy stalled and hope Biden could be out of trouble

If Biden waits in vain, the argument goes, the Chinese communist Party will wait in vain and there is no hope of getting out of trouble. Vice President Joe Biden met with Xi Jinping, then vice President of the Communist Party of China, at the White House in February 2012.

Contemporary political and economic commentators xiao-nong cheng Dr 14 this station reporter interview, said the communist party of China’s economy is facing serious difficulties at present, economy of the “three horses” namely all exports, consumption, investment, new financial crisis, China’s economy has become the largest “grey rhino”, while the communist party of China economy out of the main hope for elections in the United States Joe biden to power, but if biden became white, etc., the communist party of China is white, etc.

Dr Xiao-nong cheng said in the past ten years, the communist party of China used to driven by infrastructure investment real estate development, more than forty percent of the bank loans into the real estate industry, the financial sector because of excessive dependence on real estate, China’s economy going downhill since 2018, the real estate industry of the depression caused serious drag on the banking sector, now is the largest potential crisis in China’s economy. The real reason why the Communist Party has suddenly stepped up its assessment of financial risks is that it is now facing a new financial crisis and has to tighten financial regulation.

[sound recording] : guo shuqing, head of the China recently confirmed the fsoc, he published an article in the Shanghai securities news, in a word, he said: “the biggest risk, financial industry, the biggest” grey rhino “”, is China’s largest” grey rhino “is in the financial sector,” ash rhino “refers to a cannot accurately predict in advance, but can be expected may impact is very big, the crisis caused by a kind of metaphor. Why do you say that? Because of the communist party of China has been realized, it is now the financial sector because of excessive dependence on real estate, about forty percent to fifty percent of all money in real estate, the real estate is now come to an end, that is to say China’s real estate present situation, has led to, because the house was built of too much, and the purchasing power of residents are getting smaller, so the real estate company capital chain is more and more tight, so this kind of situation will likely lead to real estate and loans between Banks and real estate companies, will bring more and more crises, the last may be because the real estate batches of bankruptcy, and lead to bank failures, That was a huge crisis for the Party that was affecting the foundations of the economy, so the Party was on the defensive.

Dr Xiao-nong cheng also said that from the previous year to this year, the communist party of China in dealing with another about the financial sector, is the so-called P2P online lending, is the individual through the Internet, direct lending to each other, this is also some fit between real estate companies and Internet services company, is the Internet companies use now many people are eager to earn money, the lending to each other will help open the Internet pipes, last year the Chinese communist party started to regulation of P2P network, then lifted the blasting LeiChao Internet banking.

[sound recording] : the so-called P2P such loans eventually led to occur outside the bank loans, so the communist party of China from 2018 began to notice this problem may be more and more serious, and finally found it really is more and more serious, so the communist party of China began to suppress, the Internet had more than five thousand of these lenders, now in the year to November was completely reset, then reset is the result of the large number of borrowers, lending to make money on the Internet, many people lose everything, many people only get back part of the principal, the communist party of China to do these actions are also afraid of cause more severe consequences, and now have been terminated in P2P personal net loan, The Communist Party has now tightened further controls on mortgage lending by property companies, and as a result, China’s economy is, in effect, stalling.

Dr Xiao-nong cheng analysis, any country’s economy is actually only three horse to pull a horse is investment, a horse is consumption, a horse is export, but because of the deterioration of the economic relationship between China and the United States exports, already more and more worse, so this November is rare for a month, the cause is the American company was afraid of disease recurrence and stock up in China, the Chinese company is poured to the United States tried to export, so the short term, as if is China’s exports increased a few percent, but could see that this situation cannot continue, after the export outlook remains bleak. The Chinese economy is stalling as exports falter, consumption tightenes and investment runs out of road.

[sound recording] : the communist party of China is also very clear know, exports has driven the economy, the consumption of the situation is worse, because now the domestic unemployment situation more and more serious, consumers are constrained, income? A lot of companies are also on the decline, so consumers don’t have the ability to consumption, the result is a lot of food and beverage industry still has a lot of shops, are collapse, so after consumption can’t drive the economy, the communist party of China (the original or prepare those, to continue through the local government investment in infrastructure, and then pull the real estate, in this way, the communist party of China to find a “poison”, it has to be also sealed off the road, Then the whole economy is about to stall.

In this case, the Communist Party is now pinning its hopes on the United States for economic salvation, which in economic terms means that a new president in the United States will open up markets, allow the Party to export more goods, and then export its way back into the economy.

According to Cheng xiaonong, the Chinese Communist Party hopes biden will change its policy towards China and export a large number of goods to the United States so that the Chinese Communist Party can get out of economic difficulties. But now comes the latest news about election fraud in the United States.

[sound recording] : but in a few key swing states conditions do not come down, several state council has made it clear that they refused to accept, strong state ordered them to accept the election results containing fake data, so the situation is fraud great political impact in the United States, at the same time also will impact the so-called biden elected, biden till now, and there was no such thing as a truly elected, the federal election commission refused to accept the results, has been clear that it contains a lot of fraud. Is the result of the real will have to wait until January 6, then states report the outcome of the election debate not bottom, turn into the states vote separately stipulated by the twelfth amendment, is by the State Council in accordance with the state legislature delegation of most reintroduce them approved by the state legislature elected presidential candidate, a total of 52 states, there are 26 states is to support the trump, the possible biden will be white, etc, so if biden white, etc., the communist party of China is white and so on, were bailed out is completely without hope.