If the incredible cement usage in China over 3 years is true, it is impossible to replicate the same usage over the next few years to generate the same growth rate. Compounding the problem is the fact that there is a lot of wasteful construction of ghost towns and cities which will haunt the whole economy very soon. What is more worrisome is the fact that the construction industry probably hire 200 to 300 million migrant workers and it will be impossible to seek job re-structuring for this big pool of employment should the construction industry go into deep depression.
Update: Perhaps this will be a good reason to accelerate the construction of One Belt One Road project to absorb the over-capacity and capital. But it will pose a grave threat to the current shipping route via the Straits of Malacca.
Yes, something did happen in the global financial system in September 2015.
USD 11 trillion was wiped out in markets globally in late Aug and Sep 2015. Global trade has gone down by 8.4% which is unprecedented and global GDP has shrunk by 3.4% so far this year according to HSBC.
The figures are saying the global recession is under way. We read of imploding hedge funds, bond default of commodity and energy companies, imploding large retailers, the economic hardship of emerging economies due to appreciating US dollar, missing profit projection of global companies and their subsequent retrenchment between 10 to 20% of their workforce, the new recession under way in Japan and the tremendous economic hardship faced by several European countries right now with no relief in sight.
Yet it seems that there is a calm before the storm.
Is God being patient again waiting for His people to come out of Babylon ?
It is so exciting to know that David Pawson, a very prominent British Bible teacher, taught the same message as mine about the coming global economic collapse as prophesized in Revelation 18. (From 46 minutes 17 seconds of the video onwards).
He added that God exhorted us to come out of Babylon. God did not say He would take us out of her. God’s people will rejoice at the collapse of this system. Rev 18: 20 (Set me thinking what if Christians are not too keen to even hear such a message ?) He further added that God revealed the future to us is to allow us to prepare for it now and the right preparation is to prepare as taught by our Lord Jesus in Luke 16.
I have been sharing about the coming global economic collapse since 2011 in Indonesia, Philippines, China and also here in Singapore in pastoral conferences and church worship services. Before I received the third vision in Jan 2013 to complete the message God had given me since 2001, I went about sharing about the inevitable collapse of Europe and America due to the point of no return of their dire financial situation. In my book, The Coming Economic Flood, I advocated mainly spiritual preparation and getting out of debt and godly stewardship as part of the physical preparation. It is so heartwarming to hear the same message “Weathering the Coming Storm” from Chuck Missler, founder of the Koinonia House ministry. Part 4/6 gives the personal physical preparation.
Monetary Policymakers have run out of room to fight the next crisis with interest rates unable to go lower, the BIS warns…And the continued mis-allocation of resources during busts prompted by central banks’ rock-bottom interest rates has also hammered productivity growth, the BIS said, as a prolonged reliance on debt had been used in its place. This problem is compounded as the world’s populations continue to age, the organisation warned, making debt burdens harder to bear. Yet politicians have relied too much on temporary growth boosts by using debt, rather than making painful choices, said the BIS.
This is one look at some possible triggers of the Coming Economic Flood by Mr Jim Rickards, the Financial Threat and Asymmetric Warfare Advisor for both the Pentagon and CIA, author of “Currency Wars” and “The Death of Money” :
Not a quarter passes without the Bank of International Settlements (BIS) aka central banks’ central bank (also the locus of some of the most aggressive manipulation of gold and FX in human history) reiterating a dire warning about the fire and brimstone that is about to be unleashed upon the global economy…low-interest policies have made it easy for the private sector to postpone deleveraging, easy for the government to finance deficits, and easy for the authorities to delay needed reforms in the real economy and in the financial system. Overindebtedness is one of the major barriers on the path to growth after a financial crisis. Borrowing more year after year is not the cure…
The global economy continues to face serious challenges. Despite a pickup in growth, it has not shaken off its dependence on monetary stimulus. Monetary policy is still struggling to normalise after so many years of extraordinary accommodation. Despite the euphoria in financial markets, investment remains weak. Instead of adding to productive capacity, large firms prefer to buy back shares or engage in mergers and acquisitions. And despite lacklustre long-term growth prospects, debt continues to rise. – www.zerohedge.com.
Another shorter message. The watchman kept repeating the maxim that if you prepare and the flood never come, you lose nothing but if you do not prepare and the flood come, you have everything to lose. Another important point made : God has not intended that the warning is to strike fear but rather to be prepared as not to be alarmed. Jesus our Lord warned in Luke 21 about coming calamities and persecution but added that we should not be alarmed which was His intention of warning.