China in desperate, deep trouble invites IMF to present to its senior leaders.
March 27 (King World News) – Gerald Celente: “China faces a fork in the road” and needs to “reinvent itself” with dramatically new economic policies that will end its 30-month-long property crisis, jump-start consumer spending, and raise productivity, Kristalina Georgieva, managing director of the International Monetary Fund (IMF) said on 24 March.
She spoke at the China Development Forum, a gathering of senior Chinese leaders and more than 100 investors and executives from companies around the world that China had invited in an attempt to boost investment.
Foreign investment into China was down 20 percent, year on year, during January and February and off a net 8 percent through all of 2023, Reuters reported.
Directing support to consumers could add $3.5 trillion to China’s economy over the next 15 years, about twice the size of South Korea’s entire economy, according to an IMF analysis.
Achieving that goal “depends on boosting the spending power of individuals and families” and relieving local governments’ crushing debt loads, Georgieva added.
China can “rely on the policies that have worked in the past, or reinvent itself for a new era of high-quality growth,” she told the assembly.
Chinese officials assured their guests that China would reach its 5-percent growth target this year and will continue to support strategically important economic industries.
However, the officials were mum about the kinds of major policy shifts that Georgieva was urging.
In mid-month, Beijing announced moves intended to lure investment, including easing access to Chinese markets and initiatives to boost investment in the country’s science and technology sectors.
President Xi Jinping has targeted astronautics, drug development, and networked electric vehicles among several “new productive forces” that China will rely on to drive its economy.
TREND FORECAST:
Georgieva’s comments are unlikely to sway Xi to surrender his compulsion for control directly.
However, her words shine a bright light for investors and corporations on China’s hostility to free-market ideas and its need for market-oriented reforms. If last week’s forum fails to produce a robust response from external investors and businesses, pressure on Xi for major reforms will grow.
Following Georgieva’s advice also would require Beijing to stimulate the consumer economy directly, most probably by handing cash to households and somehow dissuading them from saving even more.
Xi’s government is equally far away from taking that step. Aside from philosophical opposition, the national government’s debt already is triple the country’s GDP. Some in the government have called the debt a crisis.
Only a crisis worse than that one will persuade officials to spend trillions of yuan to juice a consumer economy that might disappear as the gifts are spent.
Most likely, China will continue to muddle along, trying relatively small reforms in hopes they add up to big changes. That is unlikely to happen unless and until a crisis forces a dramatically new mindset at the highest levels of the government.
TREND FORECAST:
In an effort to rebuild their economy, and what will be a major trend as more nations de-globalize is using their human and natural resources to become self-sufficient.
Also of importance…
Ultra-High Grade Gold Discovery Continues To Mirror Fosterville!
Bryan Slusarchuk: The ultra-high grade discovery we made at Comet, just south of Agnico’s Fosterville Mine is the same age of rock as Fosterville, same mineralogy as Fosterville, same geology as Fosterville, and then extremely important to note; the same type of structural setting as Fosterville. So the discovery was made where the western dipping faults intersect the anticline. It’s really textbook Fosterville. The discovery was extremely high-grade. It was right around 8 meters at 106 grams per tonne. And the really high-grade core of the discovery ran 5 meters at 166 grams per tonne gold. And within that there were some intervals that ran 400+ grams per tonne gold.
After that extremely high-grade discovery we got a diamond drill rig onto the site, and we’ve already drilled a few more holes. What we have now seen post the initial discovery is not only do we have same age of rock as Fosterville, same mineralogy as Fosterville, same geology as Fosterville, same structural setting as Fosterville, but the diamond drilling has confirmed the gold rich quartz veined fault zone is extending to depth and laterally, and the high-grade mineralization remains open in all directions. This is also similar to what occurred at Fosterville.
Mirroring Fosterville In Virtually Every Detail!
But as we wait for the results from our second diamond drill hole, what we saw in that second hole was stacked zones of mineralization. This is again very similar to what you see at Fosterville. So post the initial discovery we knew that we were in the same structural setting, same age of rock, same geology, same mineralogy, same eye-popping ultra-high grades, but now after these first few diamond drill holes we now know the deposit is mirroring Fosterville in virtually every detail in the early stages.
In fact, that second hole was designed to terminate at approximately 150 meters, but we ended up pushing the hole in excess of 250 meters because we kept seeing these stacked zones. What this second hole shows us is the potential for big scope, big scale, big size with extremely high-grade gold as we wait with excitement for further drill assay results. And even though it is early days, everything is lining up with these Fosterville like characteristics, which means we may very well be dealing with a historic discovery — a second Fosterville. Great Pacific Gold Corp, symbol GPAC in Canada and FSXLF in the US.
To listen to Alasdair Macleod discuss China losing control over the price of silver and what this will mean for the silver market in 2024 CLICK HERE OR ON THE IMAGE BELOW.
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