Kissinger's Visit to Beijing: A Bad Omen for the Future?
Calming of tensions, or insurance in an impending conflict. Kissinger's visit to Beijing raises many eyebrows. Here's our take.
As the US continues to grow its staggering $32 trillion debt, the most formidable threat to the global economy is not China, but the potential crash of US bonds prices that could gravely impact the economies of many nations. The fallout could result in the loss of hundreds of millions of jobs and trillions of dollars in pensions. In such a critical environment, the question arises: why did H. Kissinger, a 100-year-old nonagenarian diplomat, venture to China, potentially risking his health? It seems possible that it was an attempt to negotiate with China and soften the blow in an economic storm.
Historical Context
Examining China's economic trajectory provides some answers. When President Xi Jinping assumed his first term, he was counseled that China's economy could not withstand the impact of a US bonds crash. Consequently, in 2013, China embarked on a deleveraging campaign. It resulted in the bankruptcy of the two largest real estate developers in 2021, provoking questions about the wisdom of Xi's policy choices.
An Analysis of China's Economy
In 2018, China's economic climate was marked by euphoria, with businesses borrowing profusely for expansion, and real estate prices soaring. Influential tycoons like Jack Ma contributed to this frenzy by providing free loans to young Chinese. It was an economic bubble primed for disaster. However, by deflating its own financial and real estate bubbles in a controlled manner, the Chinese government effectively diffused this economic time bomb.
Western Perspective and Ground Realities
Despite criticisms from Western experts who assert that Xi is driving China to the brink of collapse, ground realities depict a different picture. Observations indicate a resurgence in the housing market, with potential home buyers capitalizing on lower prices. Reporting of this nature indicates a possible trend highlighting a steady recovery of the Chinese economy after the initial stagnation due to the deleveraging campaign. However, many Western media outlets refute this.
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RESTRICTED ASSESSMENT
The Underlying Purpose of Kissinger's Visit
It’s important to note that from the late 1960s, China harbored deep apprehensions
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