Armstrong Economics Blog/China Re-Posted Nov 18, 2020 by Martin Armstrong
QUESTION: I believe you have said that in order for the Chinese to become the next superpower and be the monetary capital of the world the rule of law would have to exist. Given the recent take down of Alibaba how can one have faith in a system governed by a communist hierarchy?
ANSWER: Between now and about 2037, a lot is going to happen. Many questions have come in and argued that I have to be wrong about China, for they are a Communist government. They are not communists, for people are allowed to own property and create companies. China was totally different from communism from Russia. Stalin was paranoid after a counter-revolution because he was suppressing the people hard. China had the tall-poppy syndrome. As long as you keep your head down, it was not cut off. Stalin had people killed because they were smart. This is why China boomed after 1989 because they did not terrorize humanity like the Russians. In East Germany, children were told if their parents spoke ill of the government to report them. It was the classic divide and conquer even within families.
What people seem to misunderstand about this forecast is thinking that China will just boom. That is not the case. This Great Reset is the self-destruction of Western society. We have already witnessed the most drastic decline in GDP than any economic recession or Great Depression including that of the 1930s. World GDP may shrink by more than 50% by 2022. That means that China does not have to boom, all they need do is decline less than that of the west.