Nope, not talking about a bit of a chilly wind, but the unfolding economic collapse in mainland China. Another eight big property companies have gone bankrupt and the fallout is spreading like spilt ink. The IT and Entertainment sectors have been hit with massive layoffs and redundancies and I’m hearing tales of 40%+ unemployment in places, as well as half of this years tranche of Chinese graduates unable to find meaningful work.
Never mind the massive demographic problem caused by the notorious ‘one child’ policy which has led to an oversupply of men in the population, with not enough women of child bearing age. As well as going broke, to add insult to injury, the average Chinese male looks like going short on nookie.
Language schools have been laying off foreign teaching staff and the whole pack of cards underpinning the Chinese Communist Party and it’s great experiment in state-run capitalism seems to be coming undone. Rolling power outages are common, and the Chinese are unlikely to follow all the western nations in their green economic suicide pact.
Those of us who follow the markets have always been aware of the great imbalances in the mainland Chinese economy. Nor will the effects be local. The sound of this balloon going ‘pop’ will be a little loud. Markets all over the place have been pulling out of the Middle Kingdom for several years now, because if the western mainstream media can’t see what’s coming, the countries that the Chinese have pissed off (Anyone with a common border with them), can.
Now western car manufacturers, long dependent on the Chinese electronic supply chain for microchips have run short, meaning new cars aren’t zipping off the production line quite so fast. Never mind those fancy ‘green-mobiles’ powered by electrickery. Second hand vehicles are, by the laws of economics over here, going up in price.
The global supply chains are still tied in knots and will take quite a while before they straighten and shorten back to a semblance of normality. So if you were wondering what will happen when your old diesel jalopy is due for scrappage by diktat in 2030, I’d hang on to it if I were you. I’ll probably be investing in restorable motorcycles and cars now I’m getting the workshop room.
Mrs S and I have one diesel each and will be keeping them up to snuff because these ‘green dreams’ the current crop of western politicians have said they will foist upon us are just that; dreams. And you know what happens to those come the cold light of day.
With luck we’ll all forget these delusions when we have to face the real challenges of the world. Which is what happens when people wake up. But that ain’t going to happen until everything goes south. And maybe not even then. Most will just mill about in a daze until the next seemingly easy answer comes about. They may be waiting some time.
We have contingency plans in place for everything up to and including a major asteroid strike, even if it is only, “Bend over as far as you can and try to kiss your own arse goodbye.” I didn’t say that they were good plans, or that they guaranteed our survival now did I?
Anyway, to end on a lighter note; here’s a Dad-level joke you can use;
A man walks into a still-open pub. Suddenly stops dead in his tracks and starts looking around wildly, staring in panic all around. “Oh my Gawd!” He shouts. “I can’t smell anything! I’ve lost my sense of smell! The Omicron has got me! I’ve got COVID! I’m going to DIE!”
“Don’t be such an eejit.” says the barman. “You’ve still got your mask over your nose.”