Guest wrote:
> What happens if Pakistan defaults on its loans? I mean, does China
> take over the country?
> I have a lot of experience dealing with Indians and
> Pakistanis. Both groups (and I'm talking about the educated ones)
> have always been aggressive and blatantly dishonest. How anyone,
> even the Chinese, think they will get their money back from the
> Pakistanis? Everyone I talked to about this situation just says
> that it's a case of cheaters trying to cheat other cheaters. Foxes
> attempting to outfox each other. Latin Americans are just as
> dishonest and two-faced as the Indians/Pakistanis and the Chinese.
> How will this all end? I think the Chinese will lose all of their
> money and the lives of most Chinese colonists. Chinese women
> caught up in the collapse will become sex slaves to Africans,
> Pakistanis, and Mexicans.
My feeling, based on many, many things that I've read in the last
year, is that China's BRI is a humongous financial disaster in the
making. The other side of "debt trap diplomacy" is that all these
debt traps will be sprung at roughly the same time, as each debt trap
default creates a level of panic that triggers defaults in other debt
traps.
What most people don't understand is any bank or company can "create"
money by issuing debt. People think that only the federal government
can create money, but the money created by issuing debt is 100%
identical to the money created money created by the federal
government. And in a debt bubble, money created by issuing debt
vanishes when the bubble bursts.
I take note of the fact that Bitcoin is crashing. It's been year
since I wrote my article about Bitcoin:
** 16-Oct-17 World View -- Bitcoin super-bubble surges through $5,000 and blasts even higher
** http://www.generationaldynamics.com/pg/ ... tm#e171016
When I wrote that article, a bitcoin was at $5,000. In the last
year it's gone above $20,000, and in the last few days it's
crashed to well below $4,000. A lot of people have lost a hell
of a lot of money.
In the last month, the ICO ("initial coin offering") market
has become completely dead. It's no longer possible to set up
your own personal Ponzi scheme by creating a new cryptocurrency,
and then using a pump and dump scheme to sell it to suckers.
In the last year, a new financial bubble has emerged -- the BRI
bubble. What's happening in the Maldives and Pakistan is really
ominous, and shows how dangerous the situation is. This is a bubble
that's going to burst, with catastrophic results, especially in Asia.
We keep speculating about what will trigger the next world war --
South China Sea, North Korea, Mideast, Kashmir, etc. But another
possibility has always been a global financial crisis triggering the
world war. The Bitcoin crash may have cascading effects leading
to a broader crisis but, if not, it might be the BRI bubble.