The Off-Balance Sheet Financing in China Recently we discussed the enormous debt of government controlled Investment Corporations in China, and we warned that this debt, combined with other government debt in China, was approaching 87% of GNP. This is an astounding figure, unmatched in recent history. Comparisons to other nations’ growth in recent years reveal… Continue reading China’s Debt – The Next Big Shock. The USA remains the economic engine of the World
Tag: Capitalism
The Eurozone Debt, Public Funding, and Making Democracy More Democratic
Current Headlines on Eurozone Debt We now hear a constant refrain about how the Eurozone is about to disintegrate and the the Euro will disappear, with each European country reverting back to its own currency. The Origin of the Problem The strains in Europe arise from the initial difficulties of cobbling together many very diverse… Continue reading The Eurozone Debt, Public Funding, and Making Democracy More Democratic
Some Commentary on the Ineptitude of Government
The September 2011 Market Crash This week, the markets had a very significant decline. Every market in every country had huge down days. Not only stocks, but also gold, metals, commodities, currencies, oil, and everything else fell. You might ask, if everything fell, what was the fall measured against. Currencies are measured against the US$.… Continue reading Some Commentary on the Ineptitude of Government
China’s Surprising Level of Debt
In our last two blogs, we described the truly amazing amount of capital infrastructure construction going on in China, and we described how this amazing feat is being financed – by Special Investment Corporations – whose debts are really the debts of individual local governments, but those debts don’t get recorded anywhere. So what we… Continue reading China’s Surprising Level of Debt
China’s Hidden Debt – The Chinese Version of Off-Balance Sheet Financing
In our last blog, we described the modern miracle of Chinese creation of tremendous modern infrastructure. Now we look at how the financing of this modern miracle is occurring. The creation of all of these bridges, buildings, and infrastructure has to be financed, and somehow this debt must be repaid in the future. Western countries,… Continue reading China’s Hidden Debt – The Chinese Version of Off-Balance Sheet Financing
How Income Tax Havens Abuse Society – Capitalism Needs Tweaking – Point #9 of 10 (cont’d)
In my blog of December 9, 2010, I pointed out how our capitalist society suffers from dramatic up and down cycles that rob the middle class of their wealth. I suggested 10 points that would very much moderate these cycles and bring about a far better capitalist society. This is the 9th of that series… Continue reading How Income Tax Havens Abuse Society – Capitalism Needs Tweaking – Point #9 of 10 (cont’d)
Capitalism Needs Tweaking – Point #9 of 10 – Tax Havens Abuse Society Badly
In my blog of December 9, 2010, I pointed out how our capitalist society suffers from dramatic up and down cycles that rob the middle class of their wealth and earnings. I suggested 10 points that would very much moderate these cycles and bring about a far better capitalist society. This is the 9th of… Continue reading Capitalism Needs Tweaking – Point #9 of 10 – Tax Havens Abuse Society Badly
Protecting our Rights – the Tipping Point When the Cost of Rules and Regulations Exceed Their Benefit
Supposed Basic Rights in Democratic Societies In democratic societies, we feel that we have a moral obligation to protect the rights of the individual. This basic belief pervades most of our rational thought and puts a slant on many of our decisions. If only life were that simple; that one concept was universally applicable. Unfortunately,… Continue reading Protecting our Rights – the Tipping Point When the Cost of Rules and Regulations Exceed Their Benefit
A Call For Less Bureaucracy and More Private Enterprise
New US Government Employees Republicans in the US claim to be fighting for a reduction in the US deficit. As part of this initiative, they claim that included in the Obama recovery funding was the hiring of 250,000 new government employees, whose function is to regulate and oversee business, financial, medical and other aspects of… Continue reading A Call For Less Bureaucracy and More Private Enterprise
Capitalism Needs Tweaking – Point #8 of 10 (Con’t)– Understanding ‘external auditors’
Financial Statements are Now Designed to Protect the Auditor In my previous blog, I discussed how incomprehensible financial statements have become. By the sheer volume and detail of information, they confuse the reader. The trick is to give so much detailed and professional explanation in these documents, that no-one except the most sophisticated of readers… Continue reading Capitalism Needs Tweaking – Point #8 of 10 (Con’t)– Understanding ‘external auditors’