This and other blogs in the future will be based on my own conclusions and the superlative analysis by Hudson Institute’s Senior Fellow, Mr. Thomas J. Duestierberg’s “Economic Cracks in the Great Wall of China; “Is China’s Current Economic Model Sustainable?” (dated December, 2021). I have high regard for the Hudson Institute based on the quality and authoritative nature of this publication as well as the movement of Secretary of State Mike Pompeo to the Hudson Institute.
Xi, the dictator of China, is stressing now the less efficient and generally unprofitable state-owned enterprises (or partially owned), partly a continuation of his actions starting with his reign in 2013. He is also increasing “suppression of political liberties.”
Over-leveraging or excess debt creation, especially under Xi, is a part of a huge problem, “not yet generally understood.” Major dangers include the following: “bankruptcies are growing, returns on investment are shrinking,…regulations are stifling innovative sectors of the economy,” and Xi has driven “economically questionable investment in developing countries.”
The 51-page in-depth account states, “…slower growth or recession in China would likely lead to a global slow-down or recession” and since growth “justifies the authoritarian system of governance [it] could lead to political instability.”
In my words, dictators frequently resort to wars when they are experiencing domestic difficulties, something that appears to be the case right now with Xi (and “President” Putin troops threatening the Ukraine).
My solution in both the case of Xi and Putin are NON-VIOLENT retirements of these gentlemen with internationally guaranteed safety for them as well as allowing them an adequate degree of wealth. The allure to them is their safety whereas the justice is each would lose power.
