Does this sound painfully familiar?

Does this sound painfully familiar? It is the new conservative explanation for past, present, and future losses. Apparently, the U.S. isn’t unique in having to deal with fascists.All images

Kate Linthicum, Los Angeles Times

RIO DE JANEIRO — Standing atop a trailer with the Atlantic Ocean behind him, Brazilian President Jair Bolsonaro complained to a crowd of roaring supporters about a vast conspiracy against him.

Two women carried a banner calling on the armed forces to “protect our constitution, our liberty and our elections.” Demonstrators griped about “fake news” and the journalists who had slandered their candidate.

Bolsonaro had summoned tens of thousands of his supporters to this city’s signature CopacabanaAll images beach Wednesday to protest what he insisted was a rigged vote.
Never mind that the election hasn’t actually taken place yet.

For months, Bolsonaro has been preempting his own expected loss in October’s presidential vote by borrowing from the playbook of former President Donald Trump, whom he describes as his “idol”and with whom he shares several political advisers.

He has repeatedly criticized the integrity of Brazil’s voting system and has suggested that he may not accept the results of the election, which most polls predict he will lose decisively in a runoff with former President Luiz Inacio Lula da Silva, known as Lula.

Is it possible that Balsonaro also has started a fake university like Trump, All imagescheated on his taxes like Trump, and cheated on his three wives?

Oops, believe it or not, this guy has had 3 wives, just like Trump! 

“If needed,” Bolsonaro has said, he and his supporters “will go to war.”

What exactly that means is anybody’s guess. Some analysts fear that Bolsonaro, a former army officer who praises Brazil’s not-so-distant military dictatorship, could be plotting a coup or an insurrection modeled on the attempted takeover of the U.S. Capitol by supporters of Trump.

Attention, MAGAs. Bolsonaro is the perfect guy for you. Please move to Brazil, and save the sane Americans more grief.

They place Bolsonaro among a global tide of leaders with authoritarian leanings who have weakened democracies in recent years, from Hungary to El Salvador.All images

“We have learned the hard way over the years to listen to these kinds of leaders when they tell us what they’re going to do,” said Brian Winter, vice president for policy at the Council of the Americas, who predicted that Brazil is headed for “an institutional crisis.”

With the president and his family members facing a number of corruption investigations, Winter said, “Bolsonaro has a lot to lose.”

Hmm, corruption investigations, just like Trump.

Many here believe that if Lula wins — polls currently show him with a 10-point lead — a peaceful transition of powerwill depend on the depth of Bolsonaro’s backing within the military — and the reaction of his supporters.All images

Trump, like Bolsonaro, wanted to hold a vast military parade, but the generals wouldn’t do it. Thank goodness our military leaders recognize Trump for the psychopath he is and didn’t go along with his lies. Very Hitlerian.

Bolsonaro criticized efforts to legalize abortion, complained about what he calls “gender ideology” and warned that if the left takes power, Brazil will become like “Venezuela and Nicaragua.”

He called the opposition “evil” and warned that his rival would flout the constitution.

And the beat goes on. The parallels between Trump and Hitler and Mussolini are remarkable.All images

Not unlike the United States, political polarization has risen markedly here over the last decade, with political conflicts and culture wars shattering friendships, ruining family gatherings and on occasion spilling violently into the streets.

IF IT ALL SOUNDS FAMILIAR, IT IS FAMILIAR. NOTHING IS NEW

Trump’s followers believe they have discovered the final solution and that Trump would save them from the “swamp.”.

Through the centuries, all dictatorships begin and end the same way. They start with a man, usually a man, claiming that times were great in the past and things are terrible now, but he can make them great again.

Whether the soon-to-be dictator courted communists, fascists, Maoists, religious extremists, or conservative extremists, the problems always were blamed on “outsiders” or those who were “different.”

Hitler and Mussolini had the Jews and Gypsies. Stalin had the “Bonapartists,” Mao had the “intellectuals,” and Trump has his Mexican and Muslim immigrants to blame.

All dictators love the military, for it is the military that could aid, resist, or depose them. Trump loves the trappings of the military so much that he wanted to have that massive military parade in his honor. Strangely, he dissed the families of soldiers and the soldiers themselves who had died in service.All images

All dictators trust no one. They surround themselves with weak, immoral incompetents, often relatives, who would not be a threat to their own power.

Trump’s astoundingly long list of the weak, inexperienced, immoral, incompetent, or convicted swamp characters includes Joe Arpaio, Conrad Black, Ben Carson, Michael Cohen, Chris Collins, Dinesh D’Souza, Scott DesJarlais, Michael Flynn, Rick Gates, Dustin Heard, Duncan Hunter, Jared Kushner, Evan Liberty, Paul Manafort, Tom Marino, George Papadopoulos, Lynne Patton, Rob Porter, Scott Pruitt, Tom Reed, Wilbur Ross, Nicholas Slatten, Paul Slough, Steve Stockman, Roger Stone, Ivanka Trump, and Alex van der Zwaan.

Some he pardoned to gain their loyalty. Even today, he promises to pardon the felons who invaded Congress, threatened the life of the Vice President, and tried to overthrow the U.S. government. Trump claims these traitors are “badly treated,” though people have spent decades in jail for less serious crimes.All images

Dictators get very rich and keep close to a few who become very rich. We see it in Russia’s oligarchs and China’s billionaires. All are pals of the leader. The rest of the country suffers because dictators don’t care about the country but about personal power.

In short, Trump is nothing new.

He follows the modus operandum of all the dictators. And the MAGAs are not new, either. They follow in the footsteps of those who believed what Hitler, Stalin, Mussolini, Mao, Kim, Castro, et al. told them.

The outcome is always the same: A brutal dictatorship overthrown with much bloodshed and replaced by an even more brutal dictatorship. Trump's Truth Social barred from Google Play - BBC News

Message to the MAGAs: When the dictator gains power, his followers are not spared. They suffer the same brutality as the rest of the population.

Be careful what you wish for and open your eyes. Dictators are psychopaths. None of them have mercy or loyalty. Trump is a proven psychopath.

What you do for Trump will not be rewarded or appreciated by Trump. You will be punished with the rest of us.

Rodger Malcolm Mitchell
Monetary Sovereignty

Twitter: @rodgermitchell Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

MONETARY SOVEREIGNTY

Why America should thank Donald Trump

Evolution is trial and error, with the errors far outnumbering the successes. Evolution does not ignore failure; evolution learns from, and relies on, failure.

The realities of today are based on what evolution “learned” from yesterday’s failures. Evolution is highly imaginative, experimenting with combinations beyond human creativity.

Witness the octopus, the sponge, the venus flycatcher, the giraffe, the elephant, and the human. Witness quantum dynamics with its entanglement that even Einstein could not fathom.

Unlike human thought, nature has no pride, sympathy, compassion, or regret, which can strain comprehension. Nature is perfectly disinterested in outcomes and perfectly neutral regarding winners and losers.

Nature singularly does not care. It is amoral.

Humans argue on two levels. One level is the logical, “Which course is objectively the best?” level. The other is the emotional, “If you are right, I have lost the argument, and I am the lesser for it” argument.

Nature does not argue. It tries whatever comes along. Facts, not fiction, have all the power.

Before the Vietnam war, America’s leaders warned that if they placed American lives at risk, the loss of those first lives would prevent the war from ending. There would become, in American minds, the feeling of investment (“We can’t let all those boys die for nothing” syndrome).

It is a feeling that demands a further investment of lives lest the original investment be considered wasted.

And so it was.

The war, based on a lie, eventually cost too much, and after brutal losses, we surrendered. So many lives were wasted; so many were lost. We didn’t learn.

Thus, came Iraq and Afghanistan. The feeling of running on a treadmill toward hell permeated America. We no longer were invincible. We no longer were special. Someone was to blame for our depressed state. They had to pay.

America as the Shining City Upon a Hill – The Comparative Literature Undergraduate Journal
American exceptionalism

And so . . .

Donald Trump was inevitable. He came at the right time. America had come to doubt our own myths.

We had believed in, then doubted, American exceptionalism.

While Germans and Japanese could be hypnotized by promises of returning to an earlier, imaginary time of greatness, Americans felt immune to that fancy.

We were too clever. Too realistic. Too self-reliant, yet mutually reliant.

We had won World War II. We became the wealthiest, most powerful nation on earth. We were cowboys on white horses in a world of savages. We were the best of everything, the “shining city upon a hill.”

We had a Constitution written by gods, a Supreme Court populated by ideals and truth, and a political system that was fair and strong. Because we had withstood the test of a mere two centuries, we thought we would stand forever.

Now, suddenly, Vietnam, Iraq, and Afghanistan showed us we were mere humans, neither better nor worse than the “power-mad” Germans, the “crazed” Japanese, and the “cowardly” Italians.

A vast gulf opened in our national psyche. And into that void stepped Donald Trump, who promised us he would “Make America Great Again.”

He never said how. He had no plan at all. But his very saying of it brought comfort to the most frightened and angriest among us.

This weak, draft-dodging, lying, cheating, semi-literate chiseler promised us whatever we wanted. What we wanted most was to believe.

By any scientific measure, Donald Trump is a psychopath. He passes all objective measures of that term. (See “A Psychopath Slipped Into The White House“) and “Is your favorite candidate a psychopath? How to tell.”

The Hare Test for psychopathy has 20 criteria. Trump meets all twenty, as did Hitler and Mussolini.

Trump proved that Americans, as a group, are not a superior breed. We simply are people with all the weaknesses and warts of other people. It was a profoundly disappointing lesson.

We prospered in power and wealth because of circumstance and geography, not any inherent preeminence, the absence of which should be evident to any thinking person.

Trump demonstrated that within every population, there are groups of aggrieved, anti-social, resentful, angry people, who blame their own shortcomings on others, and who welcome a leader telling them, “It’s not your fault. It’s someone else’s fault. I will protect you. I will lead you to the greatness you deserve.”

In America today, those people comprise what is known as the MAGA group. Trump is their god, and their religion is whatever Trump says it is.

They dare not admit his weaknesses for fear it will weaken them.

Present them with a fact that is adverse to their god, and their belief only strengthens.

So when the FBI discovered Trump had stolen dozens of classified documents belonging not to him but to the government, he immediately produced dozens of lies and excuses.

His followers fervently supported all of them, though many were self-contradicting.

The other Trump followers are the opportunists.

They know Trump is a liar, psychopath, and traitor, but they see in him a path to their own advancement.

This is the Republican party.

The GOP is not oblivious to facts.

They know the facts.

But they don’t let facts stand in their immoral path to power.

If you have been astounded that the revelation of Trump’s misdeeds has had little effect on his followers, it simply is because they already know what he is but don’t wish to care.

The enemy of my enemy is my friend, and for Trump followers the enemy is reality.

Now Trump has done us the favor of exposing our weaknesses. He exposed the electoral college system, with its patently undemocratic system. Rather than using the popular vote as a basis, it gives excessive power to chosen “electors.”

Our founders created the system as a sop to the rich and to thinly populated states to encourage them to join the union. It has proved to be an expensive gift.

Escaping a dictatorship by an eyelash and benefitting from the patriotism of a few, America and its electoral college did not replace an elected President with an unelected rogue.

The Senate is another undemocratic organization, with its rules allowing 2 people to represent each state. So you have California’s 40 million people owning an equal vote with the half million people of Wyoming.

Democracy lies in tatters.

Trump exposed the power of the mob, the mindless elation one feels upon being part of a cheering, stomping, screaming mob.

Think of Hitler preaching to his Nazis. Think of the thrill of being in a packed football stadium when the home team scores. Think of the group’s anger at a bad call by the officials.

Why the thrill and why the anger? Objectively, these should have been mere observations, not highly emotional events. But we are humans, and we feel each other’s passions. This is MAGA.

It’s difficult to express how close America has come to disaster and how close we remain. Trump remains. The MAGA;s remain.

And though some GOP rats have begun to flee the sinking Trump ship, most remain, with their surface loyalty (for they have no real loyalties) given to Trump rather than to America.

We cannot blame the MAGAs. They are just people, not necessarily evil, but more aptly described as weak and frightened.

You cannot logic them out of their dread. They are people who, rather than loving America, fear Americans. They need a leader who will stand between them and the poor, the blacks, the Muslims, the immigrants et al whom they fear.

Have you noticed that the white supremacist, fascist, coup mob carried American flags? Many, many American flags. They display flags on cars, trucks, shirts, tweets, at Trump rallies, and in the rioters’ hands as weapons.

Presumably, they feel the urgent need to prove to themselves, their fellows, and the nation that they are patriots.

The superabundance of American flags can be interpreted as  “Thou dost protest too much” signs, for these people are not patriots. They hate America, or at least, they hate their perception of America.

They may be the least patriotic people on the planet. They long for an America that never was, an America where they are admired, respected, and important.

If there is one word that can encompass the mood of Trump followers, it would be “angry.” They are angry at the poor for receiving help. They are angry at the rich for looking down. They are angry at the middle-class for their perceived comfort. They are angry at their own failures.

For many, the anger that has taken over their lives can be ameliorated only by angry words from Donald Trump.

Like a religious leader, Trump provides hope for the forlorn, power for the weak, retribution for the aggrieved, joy for the depressed, and the lifting of spirits for the self-perceived downtrodden.

They are addicted to him. Take away an addict’s drugs and he will lash out at you. His logical mind knows the drug is bad, but his emotional mind doesn’t care.

That is which is why MAGA anger becomes violent should anyone express disagreement with even Trump’s most outrageous lies.

Reason doesn’t work on addicts. And now, like the citizens of Germany, Russia, China, and many other dictatorships, we have seen insanity here, in the shining city.

So thank you Donald Trump for showing us hell before we actually stepped into that black hole. Now, if only we are wise enough to have learned that lesson and can quietly back away.

If only.

Rodger Mitchell

 

MONETARY SOVEREIGNTY

The fairness issue of federal spending.

Situation #1: I am a wealthy man. From my own pocket, I unexpectedly hand you $10,000, with no strings attached. Would you be pleased or angry? Would that gift be fair? Situation #2: I am a wealthy man. From my own pocket, I unexpectedly hand you $10,000, with no strings attached. I also give some people $20,000 and to others, I give $0. Would you be pleased or angry? Would that gift be fair? Situation #3. I am a wealthy, new charity called “Student Help And Payment of Expenses” (SHAPE). You and millions of others give to SHAPE, which provides aid to many people for many purposes. This year SHAPE has begun to offer financial assistance to college students based on their income, grades, and other criteria. You qualify based on one criterion, so SHAPE gives you $10,000. SHAPE gives people who qualify on two criteria $20,000, and to those who do not qualify on any criteria, it gives $0. Would you be pleased or angry? Would that gift be fair? Think about your answers before reading further.
Granderson was the 2009 winner of the GLAAD Award for online journalism and was nominated for the award again in 2010. He received a GLAAD Award in 2022 for his ABC News podcast, Life Out Loud with LZ Granderson

Is Biden’s student debt forgiveness plan fair? LZ Granderson, Los Angeles Times 8/30/2022

What is fair?

That is the question of the hour, as politicians and everyday Americans on both sides of the aisle debate the pros and cons of President Joe Biden’s plan to forgive student loan debt.

Is it fair to those who didn’t go to college? Is it fair to those who “did the right thing’ and paid off their loans? In short: Is it fair to me?

Take this short “fairness perception” test. Each question has two answers. One answer is your opinion about “fair” or “unfair.” The other answer is whether you are angry about it. For example, you might feel something is unfair, but it doesn’t anger you. Yes or no, is it fair or unfair, and in either case, does it anger you that: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FAIR               ANGERS ME
  1. You pay more federal tax than Donald Trump?
  2. You pay less tax than some people who are poorer than you?
  3. You do not receive food stamps?
  4. You do not receive rent assistance?
  5. You drive a more expensive car than do some other people?
  6. You can afford a less expensive house than can some other people?
  7. You have more money than some people? (Yours was inherited.)
  8. You have less money than some people who inherited money?
  9. Older people receive Social Security, but though many people pay FICA taxes, most do not yet qualify”?
  10. The qualifying age for Medicare has been raised?
  11. Medicare doesn’t pay for some medicines and procedures?
  12. You paid for your college education, but some people receive scholarships?
Depending on your financial situation, your compassion, and your personal standards, your answers will be individual to you. I personally find the answers to questions #1, 9, 10, and 11, to be anger-provoking and unfair. How about you? Why? My anger mostly comes from the fact that federal taxes do not pay for federal benefits, and the federal government has infinite money but lies about it.
[Your taxes are paid from the M1 money supply measure–bank checking accounts. When the federal government receives those dollars, they no longer are counted in any money supply measure, because the government has infinite dollars. Effectively, your federal tax dollars are destroyed. By contrast, your state/local tax dollars go into private sector banks and remain in the M1 money supply measure. They are not destroyed.]

The White House says the average cost is $24 billion a year.

Considering we’re already nearly $31 trillion in debt and Jerome Powell, the Federal Reserve chairman, recently indicated that efforts to reduce inflation could bring “some pain to households and businesses,” asking how are we going to pay for this is a pressing question.

As readers of this blog know, “we” don’t pay for federal spending, although “we” do pay for state/local government spending and for private charity spending. The difference is the federal government is Monetarily Sovereign while state/local governments are monetarily non-sovereign. The federal government collects taxes but does not spend them; it destroys them. The state/local governments collect taxes and spend them.

But to me, the most important question is actually who is going to pay for this? As in, who pays for what society needs to remain whole and healthy and who pays when it falls short?

Anyway, my buddy Neil never had any children but for more than 40 years he has had a portion of his tax dollars pay for services he does not use, like public schools.

Now, is that fair to Neil and other taxpayers without children? Or is paying for education for the next generation necessary to be part of a healthy society?

A society where someone in Arizona can see Kentuckians struggling in the wake of devastating floods and be thankful the Federal Emergency Management Agency is there to help those people — as opposed to being resentful that no disaster requires FEMA aid in Arizona?

Those are good questions, though the author demonstrates he does not understand the differences between monetarily non-sovereign state/local financing (the public school question) vs. federal financing (the FEMA question). Taxpayers fund the former but do not fund the latter.

The answer to “who is going to pay for this?” is always “we are” — whether on the front end by addressing issues as a society or paying for the more expensive fallout from ignoring our problems.

Time and time again, we are forced to face the reality that we are all in this together.

Certainly the expected cost of $300 billion for Biden’s loan forgiveness plan is significant. But what of the effect of having 45 million borrowers grappling with $1.6 trillion in student loan debt? What of the societal and fiscal cost of those millions of Americans stymied in their futures?

Because no taxpayer pays a penny for federal loan forgiveness, the cost is not the issue. The issue is fairness and the fact that we are all in this together and that America needs educated people. The federal government, which costs you nothing, pays many different benefits to millions of different people. You personally receive only a tiny fraction of those benefits. Is that fair? Does it anger you?

But we don’t think like that, we don’t vote like that and we don’t govern like that. That is why history is replete with billions spent on fixing problems that would have taken millions to prevent. Look no further than the homelessness crisis, which used to be “someone else’s problem” until it wasn’t.

Much has been made about the likes of Rep. Marjorie Taylor Greene, R-Ga., and the other Republicans who have rabidly denounced student loan cancellations.

The irony is that the GOP aids the rich while appealing to the angry envy of the poor, who are not informed enough to understand how the GOP cheats them.

Turns out, they had their own far larger Paycheck Protection Program loans forgiven.

We know they have no shame and their supporters are not deterred by their blatant hypocrisy. And that’s how it has always been.

But for people genuinely asking about fairness or economic impact, there are issues to consider. If postsecondary education is the route to the middle class, is not college debt a sign of someone trying to pull themselves up?

That is the real point. Education is vital for the success of America. That is why our founders mandated free education for all children. Today, it is a given that all children be afforded grades K -12 (though some parents opt to pay for private schools or homeschooling). But what once was considered an advanced education — a high school diploma — today, we believe college+ to be advanced.

Sure, we can find examples like Republican Texas Sen. Ted Cruz’s hypothetical slacker barista, who game the system, but we can also point to examples of businessmen who repeatedly file for bankruptcy and still get loans — but that doesn’t mean it’s the norm.

It also doesn’t mean that supporting college is unnecessary for America, especially since nations advance not by the high schoolers but by the college-educated. College is the accurate measure of a first-world country.

I was one of those individuals who graduated from college with student loan debt and went to bed hungry at times because of it. And when I was able to pay it off, I was happy.

And I’m happy a portion of my tax dollars may go to relieve someone of that burden.

Author Granderson, it should make you even happier to learn that not one penny of your tax dollars relieves anyone of anything. Although, that may make you angry that you are forced to pay tax dollars the Treasury destroys upon receipt.

Right now, millions of Americans, including the very poor, are drowning in student debt.

I see this very much like a FEMA moment, and I’m thankful government is stepping up to help. Call me crazy but isn’t assisting those in need a principle of fairness as well? ____ LZ Granderson is an Op-Ed columnist for the Los Angeles Times.

Mr. Granderson’s article is an excellent example of American patriotism. Unlike the flag-wavers who attacked Congress and the traitors who still defend it, Granderson is a true American. He understands what “love-of-country” really means. I only wish he understood Monetary Sovereignty. Rodger Malcolm Mitchell Monetary Sovereignty Twitter: @rodgermitchell Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell

MONETARY SOVEREIGNTY

The China Situation. Are Their Politicians As Ignorant As Ours? This Will Be Interesting

China, like the U.S., is Monetarily Sovereign. It never can run short of its own sovereign currency, the renminbi. Keep that fundamental fact in mind as you read excerpts from the following article:

China’s dim prospects turn disastrous By Diane Francis

Russia’s terrible war generates headlines, but China’s growing debt crisis is mostly ignored. And yet, it will have profound negative effects on the global economy.

In just three generations, Beijing built a middle class bigger than America’s entire population. But now Chinese many face ruination.

China’s domestic real estate bubble, due to deregulation, is so gargantuan that much of its middle class has been damaged.

So far, the article refers to private sector debt. The private sector (people, banks, businesses) is not Monetarily Sovereign. Those elements can run short of money. However, the Chinese government has the power to service any private sector debt should it wish to prevent private sector insolvency.

A massive mortgage revolt is underway, and as banks fail, protests grow. Today, 50 million empty or unfinished units bought on “spec” in hundreds of urban areas may never be completed or paid for, equivalent to one-third of all housing units in the United States.

Should China wish to end the mortgage revolt, it simply could pay some percentage of the mortgages — as with Biden’s student loan support. Similarly, China could support or nationalize troubled banks to keep them solvent.

Besides that, Beijing itself is owed $1 trillion by struggling governments around the world that cannot afford to pay back loans for Belt and Road Initiative project,

Being Monetarily Sovereign, China does not need to receive payment on loans made in renminbi. If the loans were made in U.S. dollars or some other currency, China has the power to buy those currencies with renminbis. The problem with that approach is that depending on the size of the exchange, it could create chaos in currency markets.

The result of this domestic and foreign borrowing is that this year China’s debt is expected to reach the equivalent of 275 percent of its GDP due to massive borrowing and economic slowdown. The United States, by comparison, is expected this year to reach a debt level of 98 percent of its GDP.

The debt/GDP ratio is meaningless. Japan’s debt/GDP ratio is 266%, and the nation’s economy is vibrant and is nowhere near collapse.

The result of the property bubble is unusual defiance by Chinese people toward their authoritarian government. Unrest has grown because real estate speculation has been widespread for years, and most Chinese consider property ownership as a way to get ahead and secure an adequate retirement income.

But years of unbridled speculation has led to ever-increasing prices and overbuilding by aggressive developers, and now there is a glut, collapse in prices and widespread social discontent.

There is a glut of housing so housing prices are low. This is a problem for sellers, not buyers, that if it were deemed serious, easily could be solved by the central government. For example, levy a tax on future construction and sales.

Unrest spreads by word of mouth, which is a dangerous development in a country of 1.4 billion people, where putting deposits and owning several condos had become commonplace.

Essentially, China is a debt disaster in terms of foreign and domestic borrowing.

In rare acts of defiance, Chinese gather in public to object to the situation, and millions are refusing to repay loans on their unfinished apartments.This massive mortgage boycott movement began in early July and has now spread to 100 cities, involving 320 massive property development projects and many banks.

Recently, China’s Politburo issued a statement assuring property buyers that the government would help cash-starved developers finish such projects and that $44 billion would be dispensed to prop up their companies and their banks.

But this is a paltry amount, and millions of Chinese buyers need financial relief or else they will be left in the lurch.

And there is a solution to the problem. The Monetarily Sovereign Chinese government has the infinite ability to “prop up” developers, banks, and buyers. A large, Monetarily Sovereign nation has the ability to solve any money-related problem.

“China’s real estate slump has sucked in both banks and provincial governments, threatening a bigger impact on the world’s second-largest economy,” reports Nikkei Asia.

“Defaults have soared over the past 12 months. Real estate has been a key driver of the Chinese economy in the last two decades.

Real estate and related activities now account for around 29 percent of gross domestic product, up from less than 10 percent at the end of the 1990s.”

The first crack appeared when Evergrande Group stopped paying its debts or finishing projects. It had obtained free land from politicians in smaller urban centers and mortgage financing from local banks, then convinced people to snap up multiple units in the belief that demand and prices would never drop.

If it wished, the Chinese government could bail out every borrower and lender.

Now China must bail out lower levels of government because they depended on revenue from these land sales to provide education, health care, retirement benefits and other social services to their communities.

Their hardship means that services will be chopped, which could turn investor calamity into widespread national unrest.

There is no need to “chop services” for lack of money. The Chinese government could provide the needed money.

Clearly, China’s living standards have already suffered, given that one-quarter of its economy and more than 70 percent of household wealth is tied up in real estate that has dropped in value.

A Wall Street Journal op-ed headlined “Xi Tries to Ride a Real-Estate Tiger, and We All May Get Mauled” concluded that this “places the entire Chinese economic miracle model at risk” and cautions that “global financial markets, central banks and democratic leaders should brace for turbulence.”

Not only does China have the unlimited ability to create its money, but it also has the unlimited ability to create its money rules. In “The Genius of the Board Game, Monopoly,” we described how money-making and rule-making ability can affect the game. Players can change the game at will. They can begin the game by giving each player any amount of Monopoly money they choose. This image has an empty alt attribute; its file name is image-10.png When any players are on the verge of bankruptcy, the other players can lengthen the game by changing the rules to provide money to the troubled players. The players arbitrarily can change the price of properties, houses, and hotels. They can increase or decrease taxes. They can change the traditional “$200 for passing ‘Go'” to any number they choose. They can charge for property sales. They can do anything. The Chinese government has the same powers. It can bail out anyone, reward anyone, and penalize anyone. Like Monopoly players, the Chinese are omnipotent when dealing with domestic financial matters.

Then there is the Belt and Road Initiative debacle. Bloomberg reported that 19 emerging economies (such as Sri Lanka, Lebanon, El Salvador and Pakistan) are virtually bust due to huge indebtedness to China as a result of unaffordable, ambitious infrastructure projects.

These loans were granted without concern for credit ratings or the ability to repay and accused of being politically motivated “debt traps.”

But these have become China’s “debt traps,” and now protests and pushbacks take place in these countries against Beijing. China must forgive loans, restructure them or walk away and let more Sri Lankan-style collapses occur.

China forgiving loans would cost China nothing. It has infinite renminbi. Forgiving those loans might be a brilliant foreign policy strategy.

China’s immediate past has been truly impressive. It has lifted itself out of abject poverty.

But given Xi’s economic mismanagement, combined with his loyalty to Putin, who is the sworn enemy of all his Western customers, China’s future looks not only dim but potentially disastrous.

These are all money problems. China’s future might look “dim” and “disastrous” if it were not Monetarily Sovereign. But it has absolute, total control of its money. One is reminded of the bleating and moaning about Social Security’s and Medicare’s fake impending insolvency, and insolvency that easily could be prevented by U.S. federal money creation.

Diane Francis is a non-resident senior fellow at the Atlantic Council in Washington at its Eurasia Center. She is editor at large at National Post in Canada, a columnist with Kyiv Post, author of 10 books and specializes in geopolitics, white-collar crime, technology and business. She writes a newsletter about America twice weekly on Substack.

If Diane Francis understood Monetary Sovereignty, she would have written a much different article. Rodger Malcolm Mitchell Monetary Sovereignty Twitter: @rodgermitchell Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell

MONETARY SOVEREIGNTY