8 Reasons Why China Resembles The USA Prior To The Great Depression -

8 Reasons Why China Resembles The USA Prior To The Great Depression - 


I wanted to pass along some excellent thoughts from Mark Lapolla of Knight Capital.  He was in the latest welling@weeden and had some excellent thoughts on the overall economic environment.
He touches on a variety of topics including some MMT, but the most interesting portion was his belief that China now resembles pre-depression USA or 1990′s Japan.
Lapolla is astounded at how the world has come to rely so heavily on a “repressive, communist regime employing command and control economic management while violating trade protections and human rights everywhere”.
Attached are the 8 reasons why Lapolla sees similarities between China and USA prior to the Great Depression:

1) Massive disparity of wealth, income and education
2)  Rapid industrialization and displacement of labor
3)  Opaque and misleading economic and financial data
4)  Massive build-up of leverage across the “rising class”
5)  Bubbles in both residential real estate and fixed asset/infrastructure development
6)  Accelerating and uncontrolled growth in disintermediated credit
7)  Expected transference of economic growth to domestic demand.
8)  An accelerating price/wage spiral

Read more - http://pragcap.com/8-reasons-china-resembles-the-usa-prior-to-the-great-depression