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The end game is a political crisis. Chinese peopple tolerated the semi-dictatorship of the CCP while the economy appeared to be booming. If the economy collapse
by TheOtherHobbes 3y ago
The end game is a political crisis. Chinese peopple tolerated the semi-dictatorship of the CCP while the economy appeared to be booming. If the economy collapses there's going to be a very unpleasant - likely violent - crisis of legitimacy.
It's one reason China is pushing a BRICs currency. If China can print its way out of this disaster there's some hope of mitigation - messy, but not fatal.
If that doesn't happen there's a good chance of a financial and political implosion, with possible Western contagion.
- nradov 3y agoChina is not pushing a new BRICS currency. They want the BRICS and others to use their existing currency, the yuan, for international trade. Of course this is never going to happen beyond token amounts, especially not in India.
- r00fus 3y agoLula, leader of Brazil (ie, the "B" in BRICS) is calling for a common currency. "I am in favor of creating, within the BRICS, a trading currency between our countries, just like the Europeans created the euro" This does not sound like just using the Yuan, and is more likely to gain support of the bloc. I'm pretty sure Lula and Modi do not want to trade one devil (US) for another (China). https://www.reuters.com/article/spain-brazil-lula/update-1-brazils-lula-supports-trading-currency-for-brics-countries-idUSL1N36T1WW https://www.reuters.com/article/spain-brazil-lula/update-1-b...