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Why A China Crash May Be Imminent

Asia Confidential's picture




 

Those silly enough to believe that China's economy has "recovered" should at least been given some pause by this week's events. For China surprised the market with moves to reduce liquidity in the banking system and curb the property market. Clearly, the government is worried about the re-appearance of bubbles due to excessive credit growth. And they should be worried because it's obvious that the bubbles which caused China's slowdown never went away. In fact, they've gotten worse from government stimulus designed to prevent a hard economic landing. These government actions have made the chances of an imminent China crash more likely.

Double, double toil and trouble

Just when the world had bought into a Chinese economic recovery, along comes the government throwing proverbial spanners in the works. Actually, they're more like grenages. 

According to Bloomberg, China's central bank has drained Rmb910 billion (US$145 billion) from the banking system this week, a record high weekly net drain. Reducing liquidity after Chinese New Year is normal, as is increasing liquidity prior to this holiday. But the extent of the liquidity reduction dwarfed the Rmb 662 billion added before the New Year. To put this in some context, the People's Bank of China has now drained a net Rmb548 billion from the banking system this year. This compares with a net injection of Rmb1.44 trillion last year.

On top of this news came calls from outgoing Chinese Premier Wen Jiabao for local governments to impose home price restrictions and "decisively" curb housing market speculation. He described house price gains as "excessively fast" and also ordered major municipalities to publish annual price control targets. It's obvious that the government is concerned with three things:

  • Local governments are again turning to fixed asset investment, particularly property sales, to boost their revenue and GDP. The problem is that local governments own the land so they're incentivised to sell that land to get revenues. These governments are already heavily in debt and this is exacerbating the issue.
  •  Property sales have led to increased bank lending, as January figures attest too. This is not what the government wants given total credit to GDP is already high, at 190% according to Fitch.
  • More broadly, the property bubble has never really deflated. As economist Andy Xie points out, NBS data shows 10.6 billion square metres of property was under construction at the end of last year, half in residential and the other half in office/commercial. If you put market prices on this inventory, it equates to 1.5x Chinese GDP. Quite the bubble.

Why the noose is tightening

The vast majority of economists will tell you that the government's actions are prudent and will ensure that the economic recovery remains on track. They'll site all kinds of data to show that a recovery is on the cards. After all, GDP increased 7.9% in the fourth quarter of 2012, compared with the 7.4% in the third quarter. Exports in January grew 25% from a year earlier, while imports surged 29%. New lending from banks in January more than doubled from December. Total social lending - a broad measure of liquidity in the economy - increased to Rmb2.5 trillion in January, from Rmb1.63 trillion in December. Impressive stats indeed.

But I'd suggest that economists who take this data at face value are either extraordinarily lazy, ignorant of basic economics or both. Here are three initial quibbles:

  • Anyone taking GDP growth as a sign of economic health needs to be seriously questioned. GDP growth in developed world economies before the 2008 crisis was supposedly showing healthy economies when they were anything but.
  • Anyone taking GDP growth in China as a sign of economic health needs more serious help. The GDP figures can't get more rubbery, as highlighted by recent reports suggesting the real GDP growth for China was closer to 5.5% in 2012, rather than the 7.8% recorded.
  • I was one of the first to question the export data out of China late last year and the latest data makes me more sceptical. Exports from China to its largest partner, Europe, are sharply recovering, really? Given the deterioration in European economies, it's more than a little hard to believe.

So the extent of the economic recovery as indicated by the data needs to be questioned. More importantly though, a simpler, broader question needs to be asked: what has driven this seeming recovery? And it's here that the answer should concern eveyone.

For China is repeating the same mistakes that it made post the financial crisis. Back then, the government unveiled an enormous Rmb4 trillion (US$640 billion) package to ward off an economic slump after developed market economies crashed. They primarily stimulated the economy via infrastructure and property-related investment, fuelled almost exclusively by debt. It seemingly saved the day as China's economy roared back into life.

But then the hangover began in 2011. The investment garnered little if any returns in industries which were already suffering from over-capacity. Property prices started levelling off after a decade of super-charged returns, as it became obvious that demand couldn't meet the endless supply. And bad debts at banks undoubtedly skyrocketed, but have remained hidden to this day.

An investment-driven, debt-fuelled binge had seemingly come to an end. Even the government had privately told investors and stockbrokers that this binge was a mistake.

I, for one, believed them. Six months ago, I thought an economic soft landing was likely as the government wouldn't repeat the mistakes of 2009-2010. But that assumption was wrong.

As the economic downturn gathered steam in the second quarter of last year, the government turned to the easiest way it knew how to boost economic activity: fixed asset investment funded by debt. The central government officially unveiled a Rmb1 trillion (US$160 billion) infrastructure package in September last year. Unofficially, local governments launched a similar package totalling up to Rmb13 trillion (US$2.1 trillion).

How much of this money has been spent isn't clear. But infrastructure spend and property investment figures suggest much of it has been put to work. And total credit financing figures, as mentioned above for January, are showing a sharp increase from the first half of last year. The unique thing this time around is that the debt financing is being done less via traditional banks but non-banks. In 2012, total credit financing grew 20%, with trust loans up 80%, FX loans up 27% and bond financing increasing 45%.

China-NGDP-vs-credit-outstanding-Bernstein-Research

Credit Suisse estimates that the so-called shadow banking system now totals Rmb22.8 trillion or 44% of GDP, making it the second largest asset class in China!

 China shadow banking

All of this means that an economy that was unbalanced and fragile before 2012, has become more so thanks to the governments actions. The options to maintain the investment-led, credit boom are narrowing, and fast. As hedge fund titan Jim Chanos said of China: "They're on a treadmill to hell". Meaning, they either try to keep the bubbles going to maintain economic growth or they don't and risk an immediate economic crash.

Can China prevent a crash?

Now, the same economists who proclaim a Chinese economic recovery will also suggest that a hard landing isn't possible because China has the money to throw at any problems. They'll point to considerable savings, at 53% of GDP, and US$3.3 trillion in foreign exchange reserves.

There are several large holes in this argument. China's foreign exchange reserves cannot be swiftly used to help prevent an economic crisis. The majority of these reserves are tied up in U.S. government bonds. If China decided to sell just 10% of these bonds to throw at its own economy, it would have severe consequences. U.S. interest rates would spike, the U.S. economy would tank, closely followed by economies around the world. China's export-reliant economy would also be impacted. In other words, the forex reserves argument is largely an illusion.

That's not too mention that China's forex reserves have crawled to a stand-still: they're not growing anymore. If these reserves start to decline, it would mean China would need to start selling renminbi to maintain its currency peg. This would be deflationary.

The savings argument has some more merit. But anyone that has money in China and can get it out, is doing just that at present. The Chinese have few good options as deposit rates are negligible, they don't trust the stock market given its woeful performance since 2007 and property has become a less reliable investment too.

The other question that needs to be asked is: firepower for what? How can the money be productively used to both prevent a crash and re-orientate the economy to a more sustainable path. The likely answer is that it can't be: the bubbles have gone on for too long and are too large.

The best solution for China is to reduce its reliance on investment and promote the services sector. Doing this quickly though would mean plummeting economic growth. Doing it slowly would the bubbles of today could get larger and more problematic.

Sell China stocks

In October last year, I suggested that it was time to buy Chinese stocks. It was a short-term trade based on the extreme negative sentiment then towards both China and its stocks. It was not based on an improving economy, but the fact that a lot of the negativity had been baked into share prices. 

I was about five weeks early in picking a bottom to the market, but since then there have been some nice gains. Now though is the time to get much more cautious and sell out of China stocks. And also think carefully about the wider ramifications of a potential China hard landing, in terms of countries and sectors most impacted (think Australia, Canada, industrial metals etc). 

This post was originally published at Asia Confidential: http://asiaconf.com

 

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Sun, 02/24/2013 - 00:18 | 3270977 Pascal1967
Pascal1967's picture

Please send these to me first, before publishing. Your English sucks. It's "cites" not "sites" and there's about 100 other errors that aren't simply grammatical, but affect the meaning of the sentence.

Sat, 02/23/2013 - 23:41 | 3270820 The Heart
The Heart's picture

.

Sat, 02/23/2013 - 20:30 | 3270559 chubbyjjfong
chubbyjjfong's picture

China produces most of other countries cheap and nasty shit for them so that other countries companies can save a couple of cents for their greedy elite shareholders.  This means there are no more manufacturing jobs in the countries outside of China.  No jobs means no income means no one can buy shit anymore.  China can have all the factories it wants pumping out all the cheapest shit on earth but it don't mean squat if there aint no one to buy it.  You can gloss over, fudge, manipulate, print, seasonally adjust, internally invest, revalue, hedge, repo, smoke and inject all the fucking money and data you want but the coke drinking ESPN watching Joe average has been tapped out.  End of buying, end of producing, end of growth, end of fucking of story.

Sat, 02/23/2013 - 21:56 | 3270693 g speed
g speed's picture

and then there was sequester --end of story--there-fixed it for ya

Sat, 02/23/2013 - 20:05 | 3270519 Notarocketscientist
Notarocketscientist's picture

China is an export driven economy - export markets are collapsing.

So how can China be 'recovering?'

China is simply building more ghost towns and bridges to nowhere in a desperate attempt to keep GDP numbers up - and people employed - because if they don't the entire country will be burned to the ground.

Guess what - export markets are NOT going to recovery

Sat, 02/23/2013 - 20:29 | 3270551 laomei
laomei's picture

You seem to be forgetting about, oh, a continent or two which China is devoting no small amount of effort into developing as future trading partners.  When the US and Europe are screwed, China will have new markets that you are more or less shut out of.

Sat, 02/23/2013 - 19:36 | 3270484 besnook
besnook's picture

more funny stuff from the defenders of empire.

here is how it is going to work. i don't want it to work this way because i haven't been able to convince my wife to leave the country.  the usa will pay dearly. as much as i want to disagree, who am i to fight history. china has two aces in the hole and a full house on the table with two cards to go. the usa is bluffing with a pair of kings showing.the chinese guy is yapping. "you yankee dog! you let me fuck your fat wife now or i make you suck my tiny chinese dick! you make choice, now!"

Sat, 02/23/2013 - 16:22 | 3270180 steve from virginia
steve from virginia's picture

 

 

Neither the Fed nor the primary dealers have very much currency and if they did they would hang onto it. They can offer debt but a debt swap does not solve China's dollar needs.

 

China decided in early 2000s to build a big forex reserve to prevent Soros-like attacks on its pegged currency. It built those reserve then converted the dollars, yen and euros into debt instruments. Now they have instruments with picky buyers and a foreign currency squeeze. They outwitted (out greeded) themselves.

 

The only thing they can do is go to repo and commercial paper markets and take (steep) haircuts on their bonds or hold 'em to maturity. China 'Fed 2.0'. 

 

 

Sat, 02/23/2013 - 19:09 | 3270447 laomei
laomei's picture

You honestly believe that China's going to turn in those bonds for cash?  China's not dumb.  China's going to (and has been) buying actual real things.  

Sat, 02/23/2013 - 16:34 | 3270209 riphowardkatz
riphowardkatz's picture

The fed doesnt have much currency? What in the world are you talking about. Making stuff up...again.

 

Sat, 02/23/2013 - 19:09 | 3270448 centerline
centerline's picture

Huh?  The Fed can and will do whatever it wants.  The EU can't and Japan has blown it's wad (several times over - and is not THE reserve currency).

Sat, 02/23/2013 - 14:59 | 3270050 BlackVoid
BlackVoid's picture

"If these reserves start to decline, it would mean China would need to start selling renminbi to maintain its currency peg. This would be deflationary."

LOL.

Sat, 02/23/2013 - 17:42 | 3270329 FinalCollapse
FinalCollapse's picture

 What will happen if China sells USTs to the USD based investors? 

- What will happen if China sells USTs to the non-USD based investors? 

- What will happen if China prints Renminbi to offset the sales of UST to maintain the peg? Heck they can if print and sell more creating inflation. How this will impact the worldwide exchange rates?

- What will happen if China sells USTs and uses the proceeds to buy gold and every other commodity like oil, coal, copper, etc.? There will be price inflation - right?

Sat, 02/23/2013 - 16:24 | 3270186 riphowardkatz
riphowardkatz's picture

I didnt get that either. 

Sat, 02/23/2013 - 14:54 | 3270040 BlackVoid
BlackVoid's picture

"If China decided to sell just 10% of these bonds to throw at its own economy, it would have severe consequences. U.S. interest rates would spike, the U.S. economy would tank, closely followed by economies around the world."

 

WRONG WRONG WRONG.

The FED would (AND WILL) buy any quantity of US Treasuries sold by China.

Sat, 02/23/2013 - 15:18 | 3270075 akak
akak's picture

 

"If China decided to sell just 10% of these bonds to throw at its own economy, it would have severe consequences. U.S. interest rates would spike, the U.S. economy would tank, closely followed by economies around the world."


WRONG WRONG WRONG.


The FED would (AND WILL) buy any quantity of US Treasuries sold by China.


And that would all work out just peachy for the value of the US dollar, I presume?

Sat, 02/23/2013 - 21:54 | 3270692 andrewp111
andrewp111's picture

The Fed is already buying $85B/month. They could soak up China's entire stash in about a year and a half without increasing the rate of QEternity.

Sat, 02/23/2013 - 16:31 | 3270201 riphowardkatz
riphowardkatz's picture

"And that would all work out just peachy for the value of the US dollar, I presume?"

Isn't not peachy for the US dollar the goal? Got to get those manufacturers back. Capital investment in US foxcon's, j-o-b-s and wealth transfer to the banks. Its a win-win-win.

Sat, 02/23/2013 - 19:44 | 3270496 besnook
besnook's picture

that would be more like the phoenix theory, out of the ashes and all that. by the time the usa would be able to respond the chinese would be the ones with the money to invest in all that new infrastructure with the new world reserve currency like a maoshall plan as the best case scenario. the worst case being the chinese don't want the usa to rise again and will crush any attempt to rise above chinamart shoppers.

Sat, 02/23/2013 - 16:54 | 3270240 akak
akak's picture

Sadly, I cannot argue with your premise, as diabolical and malevolent as it is.

Sat, 02/23/2013 - 21:40 | 3270114 willwork4food
willwork4food's picture

Clearly, they would just have to import more fruit... but maybe not peaches.

http://chinesefont.brushes8.com/wp-content/uploads/2013/02/9e14cb4agw1e1gn0cbuorg.gif

Sat, 02/23/2013 - 14:27 | 3270018 World of Debt
World of Debt's picture

Funny music video on the world debt situation:

 

https://www.youtube.com/watch?v=IrHiYxDbnMY

Sat, 02/23/2013 - 13:49 | 3269972 moneybots
moneybots's picture

"When America rose to greatness, becoming bigger than Germany & bigger than the UK, crashes came and went.  Of course they will crash at some point, maybe soon.

The more interesting question is how resilient they will be"

 

I remember when Bob Brinker laughed at the "bad news bears" after the October 2002 low, saying the economy and stock market were resilient.  In March 2009, the stock market was lower than in October 2002 and the "Great Recession" was still in force.  Somehow, i don't think he was laughing any more.

Resilience. Gee, let enough time pass and yes there will be resilience.  The Great Depression didn't last forever, but by the time a bad era was over, some 50 million people had died in the biggest war the world had ever seen.

A bust always leads to a new boom.  One cycle ends and a new one begins.  The problem is that we haven't gotten to the end of this cycle, due to the intervention by governments to attempt to prevent the cycle low.

Sat, 02/23/2013 - 14:03 | 3269994 Mike in GA
Mike in GA's picture

How can China maintain the kind of growth it needs if it is an exporting nation and Europe, its #1 export destination  is on the rocks?

And if it can't maintain that growth, doesn't it fall prey to the same debt service/growth implosion as we have in the West?  Wasn't that 190% "credit-to-GDP" quoted in the article above? Can anyone convincingly make the case for that not to be a problem?

Maybe there have been too many calls for a hard landing in China over the last few years but the fact that there hasn't been one only hastens the day for one to come eventually, and that time may be at hand.  China is not and cannot be immune, as an exporting economy, to the ills of the rest of the world. 

Sat, 02/23/2013 - 23:43 | 3270935 Izznogood
Izznogood's picture

It seems very few people in the thread would actually even consider your question ...

Sun, 02/24/2013 - 05:25 | 3271153 TPTB_r_TBTF
TPTB_r_TBTF's picture

correct, we didnT handle the questions...

 

Q: How can China maintain the kind of growth it needs if it is an exporting nation and Europe, its #1 export destination  is on the rocks?

A: By exporting to other asian economies and building up its own domestic market.  (Only if the US MIC will allow this w/o starting a war via its Vassal Japan.)

 

Q part1: And if it can't maintain that growth, doesn't it...

A: Maybe they can maintain enough growth to get by?  Please explain why the growth rate must continue to be double-digits, and why the growth rate cannot decline.

 

Q part2:  ... fall prey to the same debt service/growth implosion as we have in the West?

A:  Is debt growth an implosion?  Do you mean debt explosion?  Anyway, the current situation is nothing a currency reset cannot "solve".  Of course, the sheeple get screwed, but that was part of the plan from the beginning.

 

Q:  Wasn't that 190% "credit-to-GDP" quoted in the article above? Can anyone convincingly make the case for that not to be a problem?

A: Nothing a currency reset cannot "resolve".  Ok, ok, so a few billion peasants get thrown under the bus, ... so what?

Sat, 02/23/2013 - 16:24 | 3270183 TPTB_r_TBTF
TPTB_r_TBTF's picture

.

 

the fact that there hasn't been [a hard China landing] only hastens the day for one to come eventually

 

Gambler's Fallacy.

Sat, 02/23/2013 - 14:56 | 3270043 BlackVoid
BlackVoid's picture

"Europe, its #1 export destination. "

Check your facts, the #1 export destination is Asia.

Already in 2007:

http://www.sutton-associates.net/issue_images/china_exports_11192010.jpg

 

Sat, 02/23/2013 - 17:38 | 3270298 Mike in GA
Mike in GA's picture

Man how quickly things change! My memory stands corrected, but with November 2012 facts, not 2007 as you (Blackvoid) cite.

 

http://www.breakingnews.ie/business/us-overtakes-eu-as-chinas-largest-ex...

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20130113000052&c...

Sat, 02/23/2013 - 15:46 | 3270119 Solarman
Solarman's picture

Who export to America and China.  Don't get caught up in the trees.  China is screwed like America was during the great depression.  Britain closed their borders to exports and started to climb out almost immediately.  America lost their markets and Britain devalued, screwing american bondholders.

As much as people will hate to hear it, america is going to come through this relatively unscathed vis a vis the ROW.

We don't have a energy or a food deficit, the trade flows are for convenience, and can stp fairly quickly.

 

Sat, 02/23/2013 - 16:05 | 3270151 The Heart
The Heart's picture
Bank of England closes in on China currency deal:

http://www.telegraph.co.uk/finance/currency/9888141/Bank-of-England-clos...

Sat, 02/23/2013 - 13:48 | 3269968 DeadFred
DeadFred's picture

Nothing like a good war to get your mind off economic problems. Are there any Faulkland Islands near China? Oh yeah there are, but the Japanese say its theirs.

Sat, 02/23/2013 - 14:05 | 3269976 akak
akak's picture

War is the health of the state.

And government-sponsored fearmongering and irrational hysteria (as reflected in the kneejerk, misinformed, gullible, government-trusting, collectivistically Islam-hating comments of PUD here) is the health of war.

Sat, 02/23/2013 - 19:04 | 3270444 centerline
centerline's picture

Where's Anon when we need a perfect example?

Sat, 02/23/2013 - 22:01 | 3270710 akak
akak's picture

Oh, I'm sure he's blobbing-up somewhere or other online.

Sat, 02/23/2013 - 13:32 | 3269932 DoChenRollingBearing
DoChenRollingBearing's picture

When America rose to greatness, becoming bigger than Germany & bigger than the UK, crashes came and went.  Of course they will crash at some point, maybe soon.

The more interesting question is how resilient they will be?  Will they go on to greatness after a big setback (like we did along the way)?

Or will they screw it up, like they have for millenia, each Dynasty was on the verge of Superpowerdom, until they screwed it up.  History suggests that maybe the Communist Dynasty might do the same...

Sat, 02/23/2013 - 13:39 | 3269950 BattlegroundEur...
BattlegroundEurope2011's picture

^^^

with a little foreign help I'm sure ;)

 

Sat, 02/23/2013 - 21:56 | 3270697 Orly
Orly's picture

The Chinese are in the box all right.

Hella plan.  Brilliantly executed.

:D

Sat, 02/23/2013 - 13:21 | 3269906 dirtbagger
dirtbagger's picture

Let's see now, is this the 9th or 10th time there has been an imminent Chinese crash over the last few years?

Sat, 02/23/2013 - 14:49 | 3270036 Bicycle Repairman
Bicycle Repairman's picture

Agreed.  It's not happening.  Someone is talking their political/economic book.

Sat, 02/23/2013 - 15:08 | 3270054 Popo
Popo's picture

> "China's foreign exchange reserves cannot be swiftly used to help prevent an economic crisis. The majority of these reserves are tied up in U.S. government bonds. If China decided to sell just 10% of these bonds to throw at its own economy, it would have severe consequences. U.S. interest rates would spike, the U.S. economy would tank, closely followed by economies around the world. China's export-reliant economy would also be impacted. In other words, the forex reserves argument is largely an illusion."

 

Yeah, see there's that "China wouldn't want to tank the USA" argument again.   'Not buying it.  China will *absolutely* dump treasuries.   And it will laugh as dollars become worthless overnight.    China is only dependent on US spending because the US is the reserve currency.   But we all know that's going to end.   And it will end swiftly and brutally.  China will collapse the US dollar when they are ready to shift to a gold backed currency, which is clearly their plan.   The only people that will be shocked by this are the clueless assholes in DC who have no idea what's happening outside of the beltway.   Bernanke will also be shocked because he's a college teacher and not a business man.  He thinks "global stability" is the goal.  LOL. Somebody should probably explain to him that the goal is "winning", and his horse is pulling up the rear.

 The presumption that China will be "hurt" by selling treasuries shows a lack of understanding of how China will benefit.   China will indeed lose money on it's T-bill holdings.  But the Yuan will overnight become the world's reserve currency and the US will implode economically.  Nah... they wouldn't want to hurt the US, would they?  LOL.

 

Sat, 02/23/2013 - 23:40 | 3270927 Izznogood
Izznogood's picture

So I guess it's time to strap on the old bug-out bag ...

Sat, 02/23/2013 - 17:56 | 3270354 thisandthat
thisandthat's picture

But who will they sell to, then?

Sat, 02/23/2013 - 20:20 | 3270537 Day_Of_The_Tentacle
Day_Of_The_Tentacle's picture

Dunno, but some time back the Treasury gave China direct access to the Treasury Auction System. It was said to be for buying, but I guess that when the time is right, it can be used for selling as well - without any of the Primary Dealers will catch a whiff of it before it is too late. Just guessing....

Sun, 02/24/2013 - 21:57 | 3272789 thisandthat
thisandthat's picture

I meant they're dependent on the US economy, they can't just tank it, even to save themselves - that would just be suicidal.

Sat, 02/23/2013 - 16:11 | 3270162 The Heart
The Heart's picture

"But we all know that's going to end. And it will end swiftly and brutally."

Peanuts...popcorn...candy.

Cigars...cigarettes...Tiperellos?

Sat, 02/23/2013 - 20:37 | 3270543 hootowl
hootowl's picture

With Europe, GB, and the U.S. all in the tank.  Why would China benefit from suddenly having the strongest currency on the planet?

How could they maintain their position when they would have no markets in which to dump their then-expensive exports?

All the gold reserves in the world won't provide enough funds to build and maintain a military big enough or strong enough to bully their competitors or protect their trade routes, enforce trade agreements and impose a Pax China on the world.  Nor are they immune to a murderous muscum infestation and domestic unrest and collapse.  The Chinese slaves/peasants are already balking at their continuing abuse.

Are the Asians, Saudis, Japanese, or Indians going to buy their exports?  The asians subsist on Chinese outsourcing.  That doesn't make sense.

Ovomit, the pansy muscum ursurper and his moronic minions won't be in power forever.  Even his demented Demoncraps will abandon him and his destructive policies eventually, when the money runs out. 

When the burden of the world's reserve fiat currency is removed from the backs of the American people, and lampposts all over America are decorated with the decomposing remains of Wall Street criminals, Babylonian Banksters, and the two-headed D.C. political Beast, the U.S. will re-assert itself as a nation of small inventive engineering masters and first-generation business people.

MBA's will be digging cesspools, economists will be burned at the stake for plying witchcraft, farmers will produce crops from heirloom seeds and saving the seeds thereof to build their future crops.

The unconstitutional Personal Income Tax will no longer exist and tax attorneys, accountants, and IRS thugs will be shipped naked and unarmed, with no communication equipment, to Kodiak Island, with instructions to feed the bears.

All Universities will be shut down, of course, before they wreak any more damage upon the youth of the country.

I could turn this into a manifesto, but I think enough said!

 

STARVE THE BEAST!!!

 

Sat, 02/23/2013 - 21:03 | 3270618 Dieselclam
Dieselclam's picture

I'm an Alaskan and I'm tempted to junk you for abusing Kodiak Island bears.

Sat, 02/23/2013 - 19:04 | 3270439 centerline
centerline's picture

Just throw a few more peasants on the fire.  That'll keep things going awhile longer.

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