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The suicidal West drowns in debt – a confident China rises?

(Tuesday/Wednesday blog)

Here’s a cheering picture to start the day. It’s the UK’s National Debt as a % of GDP from 1993 up till June 2020:

This is bad. But the situation will be much worse by end of the year as our Government has just magicked about £125bn from who knows where while shutting down large parts of the economy for yet another month.

However, Britain is not alone in this. Thanks to the Chinese plague, you could draw the same chart for pretty much any Western country.

Here’s the USA’s debt as a % of GDP – notice the nice almost vertical line in 2020 as Xi Pingpong’s Chinese plague was unleashed:

You ain’t seen nothing yet

But these two charts don’t do justice to what’s coming. As tax revenues collapse due to the economic contraction caused by Xi’s Kung-Flu, Western governments will be forced to borrow ever more to keep public services solvent as people have become used to getting free stuff always paid for by someone else. Thus borrowing will shoot up and the debt to GDP ratios will get ever worse. Here’s a projection for the US:

This will push many Western economies into a downward death spiral in which increased borrowing leads to increased interest payments leads to more taxation leads to lower economic growth leads to more borrowing leads to increased interest payments etc etc.

This death spiral will be made even more precipitous by the double suicide being committed by most Western governments:

  • pushing up energy prices due to ludicrous ‘climate change’ policies while our Asian friends build ever more coal-fired power stations to give them cheap energy and make their companies more competitive
  • opening our borders to millions of benefits-scrounging, uneducated, unemployable, often criminal Third-World migrants whose costs will wreck our social security systems and whose failure to integrate will cause havoc and violence in our societies

And here are the debt clocks for many of the world’s largest economies:

https://www.usdebtclock.org/world-debt-clock.html

Notice how high the debt to GDP ratio is for most Western economies and how low the debt to GDP ratio is for most Asian countries.

The rise of the new Chinese empire

Probably the most important piece of news of the last few days was the signing of a massive trade deal – the Regional Comprehensive Economic Partnership (RCEP). The RECP has been under discussion since 2012 and is made up of 10 Southeast Asian countries, as well as South Korea, China, Japan, Australia and New Zealand. It will cover about a third of the global economy. And with its 1.4 billion population, China will be the dominant member. Moreover, China’s 1.4 billion population is more than 50% larger than the total populations of the USA and Europe combined.

But as Asia rises (the green line on the chart below), the USA’s (orange line) and EU’s (blue line) share of the global economy continues to decline:

As we enter the Asian era, whatever happens in the West is becoming ever more irrelevant.

Better get your grandchildren learning Chinese so they can communicate with their new overlords?

Oh, and maybe this is a good excuse to include my “Wuhan video” about how the lying, corrupt, disease-spreading Chinese have used their virus to gain global domination?

5 comments to The suicidal West drowns in debt – a confident China rises?

  • Loppoman

    Whilst the “experts” strive to master the virus with lockdowns (have we had sufficient time to say that lockdowns don’t work?), the debts will continue to climb. Can we have any confidence in these people? No.
    I have a theory about this virus.
    Considering that cases appear to rise proportionately with tests, maybe, just maybe, we have the virus in our system together with the flu, common cold and whatever else, lying there dormant. Some event triggers the virus and so we get sick. Simple, maybe, but more testing is showing up the bleedin’ obvious and leads to an apparent increase in cases. OK, shoot me down.

  • A Thorpe

    The increased debt it being sold to us on the basis of very low interest rates. The fact that we are not paying off the capital doesn’t seem to matter to the government, and why should it? They accept no accountability for it, the debt is ours and we will be the ones suffering the consequences. But think of the assets we are getting to make everything better, like the wonderful HS2.

    The younger generations were not able to save before this started. The low interest rates mean there is even less incentive to save. Pension funds will start to suffer. It is all adding to the death spiral of increasing state support. This must be the Promised Land that Obama is talking about, called Poverty. It is coming as I keep saying and we are voting for it because poverty is where democracy is taking us. We need freedom from the state. I can accept mistakes I make, but I do not accept them being imposed on me by the government and they are all the same no matter what they say.

  • Stillreading

    I can scarcely believe today’s pronouncements on the “green” revolution, the prohibition in 9 years’ time on the sale of new petrol and diesel vehicles and even hybrids, the ban on gas boilers and all the other utterly ludicrous proposals and limitations issuing from the PM. Of course, it’ll all be fine for the London-centric liberal leftie elite, most MPs included, with their nice secure incomes and reasonable access to public transport and the income to afford the cost of an all electric car. But what about the thousands of rural dwellers, already on low incomes, whose nearest town or shopping centre is miles away and whose bus service runs for just a few hours a couple of times a week? Many are utterly dependent on their personal transport, aka the family banger. They won’t be able even to begin to afford all-electric vehicles, any more than could I and the majority of retired people I know. Cost apart, who wants to drive a vehicle which, when its fuel source is exhausted, requires a pit stop of an hour or more? The chaos which will ensue when the batteries of electric cars run out while drivers are stuck in traffic jambs, crawling forward for an hour or more, as we’ve all done during our motoring lives, at 5 mph, is unimaginable. There won’t be a charitable driver just behind to pop out of his car and offer the hapless marooned driver the gallon container of fuel routinely carried in the boot for emergencies! And just how are HGVs to get around? I am not an expert on energy – other than that it can neither be created or destroyed, which it is painfully apparent the majority of people don’t understand – but I tend to think that the batteries required to propel a 12 wheeler HGV a few hundred miles would constitute a high proportion of its carrying weight. I think we plebs get the message. The fundamental aim of all this is to get us off the roads altogether and incarcerate us at home where we can be easily identified and our activities monitored. Travel in the future won’t be for the likes of us. We must learn to know our place and our role, which will be to live miserably impecunious lives, as the cost of keeping warm escalates to pay the “green” subsidies, while those in power over us issue ever more mandates to govern what we do, where we go, who comes to see us and whom we visit. Meanwhile, as you state, China will plough ahead, utilising fossil fuel like mad to generate the power to manufacture and sell to us all the consumer goods we’ll be demanding. We certainly shan’t be making any ourselves, given the unavoidable unreliability of future UK energy supplies as coal-fired power stations are closed down and supply becomes dependent on sun (none in winter) or wind (sometimes none, other times so ferocious the wind generators have to be closed down.) After all, there won’t be anything other than electronic gadgetry to keep us all amused! Brave new World indeed. The ONLY vaguely positive pronouncement is that a number of small nuclear power stations are proposed rather than just one or two gigantic replacements for those due to be closed down in the next year or two.

  • Hardcastle

    It largely passes unnoticed that there is still an awful lot of coal in this country and with the potential resources from fracking,we could well rescue ourselves from the madness of the greeniacs,when it all comes crashing down around them.Ironically the Australians own one of our great untapped coalfields beneath the Irish Sea,off West Cumbria and are applying to open a new mine.Ostensibly to supply the iron and steel industry.Greens just do not understand how much of our civilisation depends on coal and oil.A war,not beyond the realms of possibility,could also rapidly drag us (politicians) to our senses.Nothing like a dose of reality to sort them out.Resist this madness wherever possible.

  • Bad Brian

    Great article and great comments from the usual suspects .

    However it’s not all doom and gloom.

    I read this very day that Dawn French, the Queen of comedy has agreed to star in ten new episodes of the Vicar of Dibley.

    It’s about time people stopped reading the news and spend more time watching inane crap on telly!

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