Over the past half century, China has undergone tremendous changes—startling political, economic, cultural, and moral changes. The Chinese Communist Party (CCP) has obtained great wealth by controlling 20 percent of the world’s population. Such unprecedented wealth is rare in the history of mankind; the CCP’s unscrupulous means in gaining this wealth are also unheard of. Due to the CCP’s deliberate cover-up, the whole world is now questioning the truth. Therefore, disclosing the truth about the China economy is essential.
For example, people often find the official statistics look good, yet they are full of contradictions; what puts the official data in such a positive light may be a philosophical issue. China’s economy has many absurdities and also many contradictions that need close examination. As these economic phenomena impact upon all Chinese citizens, the study of economics in China is quite complex. Therefore, many phenomena can neither be explained nor anticipated.
One example is China’s foreign exchange reserves; the amount currently ranks highest in the world. However, what people may not expect is that the CCP is desperately hoarding foreign currency. In actuality, Taiwan has to take some of the responsibility for this. Taiwan’s economic success, at one time holding the world’s highest foreign exchange reserves, caught the CCP’s attention. The CCP then decided to follow suit and also discovered a quick way to transform wealth.
There is also an anomaly with the Chinese currency, the RMB, which is appreciating from the outside, but depreciating from the inside. Which way is it—appreciating or depreciating? China’s real estate market is a world-class scandal. It has not only created creepy ghost towns, but also has turned into a vicious cycle for the government and the developers. China’s real estate bubble will eventually burst, but how much should China’s real estate go down in order to be reasonable in the end? All of these questions are worthy of a detailed exploration.
China’s economy has entered a crisis, and many international financiers are going short on China; politically and economically, China has no way out. Currently, China’s banks are experiencing a money shortage and inflation. Once the inflation is out of control, will the CCP issue large amounts of RMB? This could lead to an economic collapse of the CCP itself, or perhaps another relief program. In any case, the curtain of China’s economy is now being raised.
The CCP’s greed may be the cause of its own end. The revelation of so many contradictions will cause people to ask: “What exactly is the ultimate source of the world’s economic crisis?” The author of The Dragon’s Vault wants to share his views with people worldwide, and is looking forward to getting feedback.
Source: Epoch Times