Follow-up on the China content, and minor predictions

Earlier this year I made a few predictions on what might be transpiring in China and how events might unfold. I claimed 'something big' should be happening soon because there was lots of weird, conflicting signals coming from all the sides.

I believe now that my prediction might have been a premature and an overreaction, or that China is much stronger than suppressing dissent or 'internal security issues' than I imagined. The fundamental problems are still the same, and through its reactionary steps to fix them, the government is digging itself deeper. As readers will remember, their property market is crashing, their average salaries are going down, their provincial government don't make enough revenue even for debt service, and their private industries are shrinking while their inefficient state-run orgs are expanding. What is new is that the government has decided to blame it on the stock market and the banks, and is now killing the goose that laid the golden eggs. It's also slowly and eventually nationalizing all their productive industries, while it claims to be doing the opposite. It's trying to force the economy into acting a certain way by Diktak. They seem to not have realized that the people and the government are not completely aligned in the self-image of what it means to be China and Chinese in this day and age. Their demographics situation is still as much of a mess, and by blaming it all on the women and asking them to pop out babies I foresee they're going to fuck it up even worse. Their consumption income is going down, from the already low rates it was.

Perhaps fearful of the public due to all of these concerns, now they're overinvesting in their internal security apparatus, which is taking the limited budget out of the state coffers. Because of the heavy police control, any 'big' negative events are unlikely to happen in the foreseeable future, but exactly because of such investments, the governments is making itself less responsive to public feedback, and making the system of governance more brittle. It will soon come a day when people will consider that point when they went all in on a totalitarian system to be the beginning of the downfall of the party.

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