1/11

An article worth thinking about: “As changes to the world structure accelerate, China’s rule is in sharp contrast with the turmoil in the West,” says Beijing.

I agree, but I draw a different conclusion. The world is certainly currently

1/16

It is a little frustrating to see the response many analysts had to the GDP growth data Chinese released today. These numbers aren’t especially good, and they certainly shouldn’t have been surprising. Back in April and May, when most

2/16

were projecting negative or barely positive GDP growth for China in 2020 (the OECD, for example, expected China’s GDP to contract by 3.7%), I insisted that GDP growth for 2020 would be positive, and probably between 2% and 3%.

Today, it was reported as 2.3%. How did...

3/16

I know? Because I knew that while most of the healthy sources of Chinese growth would contract (except for exports, which would expand given Beijing’s intense supply-side response to the impact of Covid-19), Beijing was going to respond to a significant...

4/16

worsening of the healthy parts of its economy by unleashing enough of the unhealthy, non-productive growth it has long tried to constrain – basically real estate and infrastructure investment – in order to achieve as much economic activity as it...

5/16

needed for domestic political ends.

And that’s exactly what happened. While GDP grew by 6.5% in the fourth quarter, even with substantial tailwinds its retail sales measure – a proxy for consumption – was only up 4.6%, and it was down 3.9% overall in 2020.

1/10

The latest IMF report on China was released yesterday and provides a lot of good information and intelligent insight on the Chinese economy. The IMF’s measure of China’s adjusted fiscal deficit (including estimated off-budget

2/10

spending) is projected to rise to 18.2% of GDP in 2020 from 12.6% in 2019. The authors correctly note the worrying surge in debt and warn that Beijing must continue to try to contain financial stability risks, but I notice that they are projecting average GDP...

3/10

growth of just over 6% between 2012 and 2025, including a downward revision of their 2021 forecast from 8.2% to 7.9% (which I still think is a little high).

As I’ve long argued, it will be impossible for China both to control the surge in debt and to achieve growth...

4/10

targets above the real underlying growth rate of the economy, which I suspect is 2-3% at best. I know the IMF is constrained in what it is able to say about the Chinese economy if it wants to remain part of the advisory process, but I do think that after 10 years...

5/10

of watching this game we should be a lot more explicit about the relationship between unreasonably high GDP growth targets and high credit growth. There really is no point in advising Beijing to get financial risks under control while at the same time approving...

1/10

This is a really tough problem to resolve, especially if the massive increase in inflows from the trade and financial accounts are sustained, as I expect they will be well into 2021.

Clearly the PBoC would like to see the RMB gradually...

2/10

strengthen. This would keep financial markets stable and promote rebalancing, but the RMB has already strengthened a lot, and this puts unwanted pressure on exporters and “international circulation”.

Although PBoC reserves have been flat, other state-controlled Chinese...

3/10

banks have bought large amounts of dollars, but this is expensive. If these banks have half a trillion dollars of exposure, for example, they are losing at least $15-17 billion annually on negative carry, plus another $20-30 billion just this year from the rise of the RMB.

4/10

Beijing seems also to be trying other measures to slow the rise. The regulators are relaxing capital controls on outflows. In mid October the PBoC cut to zero the reserve requirement ratio for banks doing FX forward trading. This requirement was created in 2018 to reduce...

5/10

downward pressure on the RMB. In late October it suspended the counter-cyclical factor in RMB fixing, which was introduced in 2017 also to reduce downward currency pressure. But in both cases while the RMB dropped a few pips on the news, it quickly resumed its upward climb.

1/9

Good article. But while growing international criticism and rising trade tensions may have had some impact, as the article suggests, I don’t think they really explain the great reversal in BRI lending of the past few years.

2/9

As I have been writing since 2011, China’s development lending was always likely to follow the pattern of other countries when they first “went out” (e.g. the US in the 1920s, USSR in the 1950s, Japan in the late 1970s). Because of little historical...

3/9

knowledge and no previous experience, an early rapid rise in development lending would be driven mainly by underestimating risk and an overestimation of their own business "success" in making loans, and would of course be further supported by geopolitical ambitions.

4/9

This combination would inevitably lead to bad lending decisions, followed just as inevitably by debt restructuring, loan losses, and a contraction in development lending. In the 1920s, for example, the US set off quite explicitly and aggressively to displace England in...

5/9

Latin America, and American businesses and banks assumed they “understood” Latin America much better than the English did, in spite of the vast English experience there, but their early displacement of British lending only resulted in the huge loan losses of the 1930s.

1/9

China is aging so rapidly that it urgently needs to address the problem of a rapidly declining work force in a slowly declining population. To give an idea of relative population changes among the three most populous countries, today

2/9

are 4.3 Chinese for every American and 4.7 Chinese of working age (ages 15-64), while there is just over 1 Chinese for every Indian and 1.1 Chinese of working age.

By the end of the century, however, there are expected to be 2.5 Chinese for every American and...

3/9

just 2.4 Chinese of working age, while there will be 1.4 Indians for every Chinese and 1.5 Indians of working age. Over the rest of this century, in other words, while China’s population declines quite rapidly relative to that of the two other most populous countries, it...

4/9

also switches from having a much better dependency ratio than either to having a worse one than either, with far more of its dependents being the elderly rather than children. In effect its working age population will drop by half relative to those of the other two.

5/9

This is going to be a very tough problem to resolve, although to the extent China succeeds, it will be very useful as an example for other countries. I am not sure they are going about it the right way, however. Making seniors make better use of smart technology sounds...

NEW: @SidneyPowell1 in radio interview w/ @toddeherman when asked what her "Elevator Pitch" to the Supreme Court would be "The very night of the election many people saw something that they had never seen before in the history of our elections. They saw votes being changed on

2/ the screen in front of them, going from President @realDonaldTrump to @JoeBiden. On top of that, the morning after the election, even that night, the voting stopped. They stopped counting in multiple districts at the same time before the vote got to 270 electors for President

3/ Trump. That's never happened before. The only time votes have ever stopped being counted in this country on election night was when the Broward County problem developed over the Hanging Chad's in one county in FL. So for FIVE states to stop counting on election night is

4/ absolutely UNPRECEDENTED. And they did it because the vote count for the electoral college was about to hit [+ go over] 270 for President @realDonaldTrump, because of the massive outpouring of votes for him that night. By the next morning, multiple mathematicians had contacted

5/ me and told me they knew the algorithm that had been run to change the votes. It was that obvious to people with mathematical expertise. It is a mathematical impossibility for 100's of thousands of votes to show up for VP Biden alone, and to have been injected into the system

17 / TRUMP / RED LINE / FRANCE / 21

THREAD

Trump owned France back in 2017 and never stopped since.

Q is using France as a mirror for the show.

USA Revolution 1776

[+13]

FRANCE Revolution 1989

ENJOY THE SHOW 2021 PATRIOTS

#OldestAllies 🇫🇷🇺🇸

South African science was crucial in helping UK discover its new variants; but then the UK govt claimed (wrongly) that the SA variant is more transmissible. No evidence to support this, according to @krisp_news

From the Times article: SA scientists "were the first to recognize the importance of a genetic change in the spike protein, something that allows the virus to attach more easily to human cells, making it more infectious than the original version."

The SA discovery was shared on Dec 4 over the WHO’s Covid-19 Evolution Working Group. “Our British colleagues were able to go back to their own databases and interrogate them as a result of the work we shared,” Richard Lessells, an infectious diseases specialist at Krisp, said.

More from the Times article by @janeflan: "While working on a much smaller budget than their British colleagues, the South African team, experienced with work on HIV, have the skills to decode the genome of viruses."

"They started work on samples of the Covid-19 virus soon after the first cases reached South Africa in March. In October they identified the first example that had changed significantly."

CAPITOL RIOT QUESTIONS FOR SPEAKER PELOSI: There is no group in America more interested in the safety and security of the Capitol than members of Congress. To that end, members have asked @SpeakerPelosi to answer these basic questions:

1/ What was your role in authorizing or denying National Guard support before and after Jan. 6?

2/ Reps. Rodney Davis, R-Ill., Jim Jordan, R-Ohio, and James Comer R-Ky., on Feb. 15 asked you five pointed questions about your role in Jan. 6 and your preservation and compliance with document requests. Will you answer them?

3/ After the 2011 shooting of now-former Rep. Gabby Giffords, D-Ariz., what changed with regard to security?

4/ After the shooting of Republican House Whip Steve Scalise, R-La., were any changes made to security?