Everything's Fake About China Except This...

Tyler Durden's picture

Fake goods, fake economic growth, fake trade, fake cities, fake human rights, fake country. Real debt.

The global trade in counterfeit goods accounts for 2.5 percent of the world’s imports and is worth almost half a trillion euro, according to a report from the OECD and EUIPO. US, Italian and French brands suffer the most from the lucrative global trade in knockoffs. The report analyzed customs seizures around the world between 2011 and 2013, finding that China accounted for the most fake goods of any nation by some distance.

Infographic: Where The World's Fake Goods Originate  | Statista
You will find more statistics at Statista

h/t The BurningPlatform


So everything's fake about China! Except this! Real Debt!


And that bubble is bursting.

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sunny's picture

"And that bubble is bursting."


Nah, Draghi is gonna come riding in and buying everything that needs buying.  No burst bubbles, no correction, no hard landing.  We're all safe.

skinwalker's picture

I've often wondered something: with so many nations owing so much money, who owns it all? Is it a collosal circle jerk between nations? Does some guy in a castle in Luxemborg sit on top of the global debt pile grinning? 

Sudden Debt's picture

Nop, that would be easy.


Nop, our pension systems for example, they're fully invested with your life savings in those debt markets.

Insurance companies, banks with your savings... ... ... ....

It's all the people's money. Who think they'll all get it back one day.

And that's about 50% of all debt worldwide that was supposed to return interest and that was supposed to fund inflation adjustment.

Now... With NIRP and all, people's future income is getting a massive blow. But most people are to dumb to realize that when they say: "people will lose money in the future' then they don't realize that in 5 seconds from now, we're also in the future.

Won't happen to us, can't change, the Disney scenario... you name it. People still believe a shitload of crap.

mickeyman's picture

If I could just put in the picture I would.

But this is the front of a new office building in the CBD in Zhengzhou, Henan province.


Bank? Or just what the building represents?

Squid-puppets a-go-go's picture

most of it is created out of nowhere by the finance industry, 'lent' to finance industry investment vehicles which then 'buy' govt bonds so the govt borrows money that has been borrowed from banks

thats the evil and criminality of money printing or fractional reserve banking. They create money out of nowhere, but that money gets paid off by folks and businesses actually working/producing. Over the decades/centuries, the wealth of the world's economic activities gets funnelled to assholes who did practically nothing for it - certainly not dollar for dollar or anywhere near it

strangewalk's picture

Under certain conditions debt is mainly illusory, and in others it is mainly real. US government debt is mostly illusory, it doesn't really exist since interest payments can be met using more debt--this could theoretically go on forever as long as inflation is kept under control thereby maintaining faith in the currency. China's debt is more real than US government debt since their debt has mostly been incurred by business enterprises that are constantly scrutinized by investors, vendors and contractors, making default, loss of faith or virtual bankruptcy a possibility.  ,

ft65's picture

A system based on perpetual growth on a finite planet. 7 billion and counting!

luckylongshot's picture

This article is a classic poorly researched piece of garbage. If the author had bothered to do his homework he would have discovered that the central bank of China is owned by the Chinese rather than the Rothschilds and that changes everything. The Chinese can cancel all their debt overnight, or make it interest free without causing a crisis in China. For the US however this same situation would result in a catastrophe as the central bank is privately owned and does not act in the interests of anyone but its owners. So the debt in China is fake too!!!

Argos's picture

"Total debt"?  Consumer, corporate, government and shadow?

skinwalker's picture

You can buy gold plated tungsten AGEs for about 400 bucks apiece on Alibaba. 

83_vf_1100_c's picture

 Seriously? I wouldn't pay that knowingly but I would like one on the cheap to test against my AU/AG android app.

ft65's picture

Love the fact that the plastic box with the gold plated tungsten (if it is real tungsten) is being held by a cotton gloved hand. Makes it all look so much more legitimate.

GoldenGoosed's picture

Yup seems to be the topic of conversation ever since china decided to pull a draghi too and buy junk even though they know it is a problem.

Sudden Debt's picture

China doesn't has those social obligations like we have.

So yeah, 25 trillion... but include our social obligations and we're over 250 trillion....


monk27's picture

China could default on its debt any time it feels like. America, not so much... BIG difference !

Squid-puppets a-go-go's picture

thats a false reductionism.  Neither would escape consequences, though they be different 

monk27's picture

What exactly would be the consequences for China, if you don't mind ? They seem to be the quintesential "creditor" country nowadays...

ft65's picture

nobk27... When was money ever real? This shit is all being made up as they go along.

Squid-puppets a-go-go's picture

just the sheer volatility of asset prices across the board in realignment. Enough chinese have lost their life savings as it is trying to navigate the bubble blows and busts. Revolution is hard to avoid as it is

Snípéir_Ag_Obair's picture

fair enough, and good article, but if I'm China, dependent on exports and the dollar...as I see the dollar printed in the trillions, and in terminal decline, and a US government racing to deficit spend in a way that telegraphs a lack of intent to ever reign in the printing or debt-spending or the imperialist violence which props it all up against inflation...

wouldnt you have to be kind of an asshole to not realize that to not accrue massive debt yourself in this environment [and add in the clusterfuck that is the EU and the BRICS] would be shooting yourself in both feet?

Jason T's picture

Don't forget fake concrete.

market le pew's picture

There is no fake debt as long as long as the populace belives in a currency based based on good faith. And as soon as "good faith" disapears the debt is real. What happens afterwards is anybodys guess.

matermaker's picture

Money is the measurement of work/productivity, the value of resources and innovation. It's typically been in a metric of a commodity like gold and silver.

If your measurement of wealth is turned on its head, the record of your past work/productivity indeed might be forgotten. However, the value of resources remain as does the value of needed productivity.

It's up to you how you want the value of a lifetime of work to be recorded.

reminds me of the Conan movie...  There comes a time, thief, when the jewels cease to sparkle, when the gold loses its luster, when the throne room becomes a prison, and all that is left is a father's love for his child

brooklinite8's picture

I will believe when this debt ponzi breaks. I have been hearing stories for a long time that US has lot of debt. But some how keeps borrowing and has no issues finding creditors. China is no different. For that matter no country is different. How much is debt servicing costing china with 5% interest rates? How much is it costing US with its 0% interest rates? If you are scared of debt US should remain around .5% - 1% interest for a long time to come. Give it a small crisis triggered by china or any other counterparty we are looking at Negative rates and more QE's. Japan is the leader. That is one country where the fiscal policy changes every second. Its amazing I know the Central Bank governors names for all major central banks but not the actual presidents names. We are becoming a nation of mathematics driven economy. If you ask me we should become more of an ethical economy first.... 

ft65's picture

Unfortunately we left it a bit late to start demanding an ethical economy. If we could reset, the same thing would happen all over again. It is arrogant to think our civilization is any different than those that have come and gone before. Though I guess the Internet has allowed more people to understand how pyramid schemes (can never) work out.

milanolarry's picture

Swindlers are also real in China.

Kirk2NCC1701's picture

You can thank the GOP for that. Nixon & Kissinger, to be exact.

Actually, it was Kissinger who was using the Jedi Mind Trick on Nixon:

- You want to open China to US business, so we can take over from within

- You want to close the Gold Window, so we can print more for war

- You want Israel to have nukes, as our proxy

DieselChadron's picture

Well now, that's interesting.. no mention of their very real and rapidly expanding gold reserves?

Oh, and by the way, debt created out of thin air isn't exactly 'real'.



ft65's picture

Digging shiny yellow metal out of the ground for the purpose of hoarding isn't real either!


A system based on trust, run by crooks is somewhat doomed to eventusl failure.

Infield_Fly's picture
Infield_Fly (not verified) Apr 24, 2016 9:00 PM



you pay now