just imagine you earn the NZ minimum wage, soon to be $ 12.50. You return from where you work to your family for christmas and while yu are hoome you get a phone call. You don’;t need to come back for your job because there is no job anymore. Why? Because the rest of the world doen’t want the cheap crap your boss had you make anymore. Overnight your rural family looses 65% of it’s income. What you gonna do? Oh, I forgot; you find out that the “financial stimulus” only goes to industries close to the elite and your not alone, there is 50 million of you, all hungry and very angry! Are you going to wait until your family starves? No I didn’t think so. Can it happen here? Well, let’s put it tihis way; the Government isn’t bringing those project forward for nothing. Is that going to be enough. In a word NO! In the very near future we will see hyperinflation making those hardearned $ 12.50 worth about oh, nothing. Google Weimar and find out. And perhaps if you can handle bad news you might want to watch Money as Debt. Yep your got it right “banks have been printing money out of thin air since we left the gold standard in the 70ties and we are at the point of no return. Our fiat money system is collapsing and hter is nothing that can stop it.
The Chinese government is facing a massive unemployment crisis, far worse than in the late 1990s, when lay-offs of more than 30 million workers from state enterprises led to a wave of militant protests. This time, the growing army of unemployed mainly consists of internal migrant workers from the countryside, who have been hit hard by plunging export orders in the urban manufacturing centres and the collapse of the construction boom.
Some 25 to 26 million migrant workers lost their jobs last year, Chen Xiwen, director of the official Central Rural Work Leading Group told a press conference last week. More than 130 million migrant workers were employed in the cities, with another 80 million in township enterprises.
Even though millions of workers were instructed not to return to the cities from the recent Chinese New Year holiday, because their work had dried up, many still made the journey, only to find themselves not wanted. Their anger and frustration are the makings of a social time bomb, because 65 percent of the average rural family’s cash income is derived from members working in the cities, according to research by the Chinese central bank.
Academic studies have predicted staggering job losses in the new Year of the Ox. Professor Yu Qiao at the prestigious Tsinghua University recently warned: “It’s expected that 40 to 50 million or more migrant workers may lose their jobs in urban areas if the global economy keeps shrinking this year.” This figure does not include the millions of unemployed urban workers.
Yu continued: “Jobless migrant workers on this mass scale implies a severe political and social problem. Any minor mishandling may trigger a strong backlash and could even result in social turbulence.”
Yu criticised the Chinese Communist Party (CCP) regime’s 4 trillion yuan stimulus package for focussing on capital-intensive industries that have close connections to the CCP leadership. He said the package would provide some boost to GDP growth, but do little to ease unemployment, as small businesses, which provide the bulk of jobs, were being ignored. Yu also warned that the package would give a short-term boost to the construction sector, but cause overcapacity for years to come.
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Tags: China, economic collapse
