by James Rickards
Daily Reckoning
When I write collapse, I’m not referring just to a financial meltdown. I’m referring to a broad-based social collapse that could call into question the rule of the Chinese Communist Party (CCP), which some historians refer to as the Peasant Dynasty.
In order to understand the vulnerability of China, it helps to consider the counter-narrative that the China is a rising great power. We’ve heard for decades that Chinese GDP would soon exceed U.S. GDP to make China the largest economy in the world. China has also long been known as having the largest population in the world.
The latest addition to the super-China narrative is that China is passing the U.S. in technology and AI and that this technology applied to the People’s Liberation Army (PLA) would give China military superiority as well. From this position, it’s a short hop to a Chinese takeover of Taiwan and expulsion of the U.S. from its position in the Western Pacific. At that point, the Asian Century will have truly displaced the American Century (1914-2008).