June 26, 2018 - Steve Pieczenik
03:26
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| Time | Text |
|---|---|
| Hi, this is this is Dr. Steve Pechenek and this is Steve Talks. | |
| Pechenik. | |
| Today I want to talk about two major events that are occurring around the world. | |
| One is in Turkey. | |
| Our friend Erdogan, who is supposedly our best ally, is really not turning out to be America's best ally. | |
| He has just been re-elected for another term. | |
| He's been in power for 15 years. | |
| He wants to remain in power until 2030. | |
| And so he's increasing his authoritarianism at the same time that the economy of Turkey is going down, and he's shifting his power alliances to Russia. | |
| I wish him the best of luck, but I see Turkey is going to be in a major financial trouble. | |
| A far greater financial problem is China. | |
| My friend, President Xi, whom I've said before, did not really understand the economy, has now released another $100 billion. | |
| This is the second time in two months that he's released $100 billion into the economy in order to increase liquidity. | |
| The problem is that China already is 300% over its GDP. In other words, its 6% growth is no longer a reality. | |
| In fact, it's 300% in debt. | |
| Now he's increasing the debt. | |
| What he's in fact doing is destroying China As a viable economic and political entity. | |
| He really doesn't understand that without the principle of mark to the market. | |
| That is, if you're going to give a loan of 100 million to a company that may have been worth 200 million, but really is only worth 1 million, You have to mark to the market. | |
| He won't do that. | |
| So in order to avoid being taken down by the discontent of the middle class, which has increased its economic wealth, he has had to flood the economy with even more money. | |
| This is going to lead to an unfortunate financial disaster for China. | |
| I've warned about it years ago. | |
| I'm still warning about it now. | |
| I think with the tariffs that President Trump imposed, it will make it even more difficult for China to really accrue any type of growth. | |
| The reason why Trump had really given a very hard argument for ZTE technologies to remain viable is that without that technology, ZTE and China would lose 77,000 people and workers in that particular technology field. | |
| That would be the beginning, literally, Of taking down the entire economy of China. | |
| I warned President Xi before that his attempt to create the Silk Road all over the world in principle sounds fair, it sounds noble, but in reality it is stretching China beyond the breaking point. | |
| Let me quote the great philosopher Nietzsche, who said the following, When the gods are cruel, they will grant you wishes. | |
| And the second part that he added is, That which will not kill you will make you stronger. | |
| I hope that's true of President Xi and my friends in China. |
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