China is at mounting risk of a Japanese-style "liquidity trap" as monetary policy loses traction and the economy approaches credit exhaustion, forcing a shift towards Keynesian fiscal stimulus.

Officials at the Chinese People’s Bank (PBOC) have begun to call for a fundamental change in strategy, warning that interest rate cuts have become an increasingly blunt tool. They cannot easily stop companies hoarding cash or halt the slide in private investment.

Sheng Songcheng, the PBOC’s head of analysis, set off a storm last month by warning that the economy had “started to show some signs of being caught in a liquidity trap.”

Caixin magazine said last week (8/16) Chinese companies are hoarding record sums of “dead money” rather than spending it. The growth rate of private investment has dropped to 2.1% over the last seven months, the lowest since global financial crisis. 

The International Monetary Fund warned in June that China’s corporate debt has reached 145% of GDP. “Vulnerabilities are still rising on a dangerous trajectory. They must be addressed immediately,” it said.  China’s entire financial system is clearly out of kilter.

Donald Trump has said publicly that he fears the next election will be rigged. Based both on technical capability and recent history, Trump’s concerns are not unfounded.

A recent study by Stanford University proved that Hillary Clinton’s campaign rigged the system to steal the nomination from Bernie Sanders.  What was done to Bernie Sanders in Wisconsin is stunning.

Why would the Clintons not cheat again? 

Democrat voter fraud has a long history.  The most prominent example is how it enabled John Kennedy to be President in 1960 instead of Richard Nixon.

Here’s how it happened back then with plain voter fraud.  It’s much easier now with rigged electronic voting machines.

Donald Trump has been issuing warnings about Democrat voter fraud in America this November.  If it’s anything like what we Brits are experiencing, you Yanks should listen to him.

If ever you’ve worried that parts of Britain now resemble some hideously corrupt, Third World Islamic basket case hell hole then you’re going to love Sir Eric Pickles’s gloriously robust report on electoral fraud.

His target, it’s clear, isn’t just the Moslem communities in places like London’s Tower Hamlets (and Birmingham and many Northern towns) which have imported to Britain the kind of political skullduggery and malpractice routine on the Indian subcontinent.

More broadly what Pickles is attacking is the bankrupt philosophy of Multiculturalism and the entrenched, institutional political correctness that have made it all possible.

It’s morally bankrupting Britain and Trump is warning it could bankrupt America.

To explain the present, the Communist Party of China (CPC) often turns to the past. One of its favorite pastimes is to deploy China’s decorated history and the wisdom of its ancients to explain its policies and bolster its authority.

For example, the CPC frequently offers the (largely nonviolent) 15th century maritime voyages of Zheng He, who projected Chinese power and carried Chinese treasure to destinations as far flung as the Middle East and Africa, to support the notion of its “peaceful rise” in the 21st century.

Mao was fond of quoting Sun Tzu, while today Xi Jinping keeps a rolodex of wise sayings from political philosophers at the ready.

Yet despite the homage paid to these leading lights, Beijing’s behavior is growing increasingly at odds with much of their counsel. That is to the detriment of China and the world.

Many of China’s most prominent ancient political philosophers, including Guan Zhong, Laozi, Confucius, Xunzi, and Mencius, held that governing with humane authority—“winning the hearts and minds of the people at home and abroad”—was the key to becoming a leading world power, as Yan Xuetong points out in his book Ancient Chinese Thought, Modern Chinese Power.

In terms of its foreign policy, China has been doing little of this lately.

At the DNC Convention, Michelle Obama put on her victimhood hat one more time and declared, “I wake up every morning in a house that was built by slaves.”

But that’s too past tense. Michelle’s house continues to be built and maintained by slaves. Her lavish lifestyle of endless vacations, parties and public appearances is funded by millions and millions of slaves.

Michelle Obama lives a life that is vastly more lavish and luxurious than that of any plantation owner. She has 26 staffers that are part of a White House staff of thousands. That’s more than many crowned heads of state. Compare that to 12 servants for Thomas Jefferson.

Michelle’s house, her luxurious lifestyle, is built by taxpaying slaves who are forced to turn over their money to fund her pleasures. She spent more money on one night in Morocco than the average American family will see in five years.

The Obama lifestyle is just the tip of the iceberg. Tens of thousands of more modest government plantation owners cling to their skirts living off the stolen toil of the government’s slaves.

Government, like slavery, is an institution. Like slavery, it claims to civilize its dependents. In reality it exploits them. It promises them security in exchange for freedom. It takes away the products of their toil and then tells them that they didn’t build that. It claims a false moral authority to exploit them.

A Donald Trump presidency would be way more beneficial to the environment than a Hillary Clinton presidency.

Trump really needs to mention this point at his rallies, not just for the trolling, but also because it happens to be true.

Consider just one example: the hundreds of thousands of rare birds and endangered bats slaughtered in the US every year by the wind farms that Hillary Clinton applauds (and will no doubt go on subsidizing) and that Donald Trump loathes (and will no doubt starve of subsidies and cause to become as extinct as the Dodo).

As the Daily Beast recently noted, Trump’s hatred of wind farms is probably the most consistent and long-standing of all his political convictions.

Donald J. Trump Verified account ‏@realDonaldTrump "@noturbine: @realDonaldTrump Wind turbines kill up to 39 million birds a year, Industry hides evidence of kills http://www.cfact.org/2013/03/18/wind-turbines-kill-up-to-39-million-birds-a-year/ …"

Trump does have a point. If you care about flying wildlife, bat-chomping, bird-slicing eco-crucifixes really are about the most pointlessly destructive form of power generation there is – as a series of recent studies show.

On Monday (8/08), British Prime Minister Theresa May announced what is being called the “Frackpot” –  to redirect some of the future profits of shale gas production to households, rather than councils.

[Note that in the UK and most countries, unlike the US, the government owns the mineral rights under a landowner’s land.  Note also that – surprise – British environmentalists are denouncing May’s policy as a “bribe.” – JW]

After leaving the European Union, Britain will have to be quicker to adopt new technologies, the better to create wealth in the knowledge economy. For me that’s the biggest opportunity of Brexit.

But to grasp it we must find a way to persuade people to be more ready to embrace innovation and less suspicious. A country that can work out how to do that is going to steal a march on its rivals.

Innovation is the source of virtually all prosperity. It is the reason the average person now lives longer, feeds better, travels farther, is better entertained and sees more children survive than even a monarch did four centuries ago. A glance back through history shows that innovation nearly always does more good than harm.

So why is innovation so fiercely resisted?