The brilliant and sometimes scathing John Hempton (Bronte Capital) published a post on June 10th called The Macroeconomics of Chinese Kleptocracy. His piece outlined and underscored how the world’s second largest economy is essentially set up as a looting mechanism for the ruling class.
In an update, John clarifies a few of his points and then mentions that the post has recorded 100,000 views so far. If you missed it, I recommend checking it out, I’ll also post a link to the update below…
China is a kleptocracy of a scale never seen before in human history. This post aims to explain how this wave of theft is financed, what makes it sustainable and what will make it fail. There are several China experts I have chatted with – and many of the ideas are not original. The synthesis however is mine. Some sources do not want to be quoted.
The macroeconomic effects of the Chinese kleptocracy and the massive fixed-currency crisis in Europe are the dominant macroeconomic drivers of the global economy. As I am trying a comprehensive explanation for much of the world’s economy in less that two thousand words I expect some kick-back.
China is a kleptocracy. Get used to it.
I start this analysis with China being a kleptocracy – a country ruled by thieves..
and the update: