Mass suicide' protest at Apple manufacturer Foxconn factory Around 150 Chinese workers at Foxconn, the world's largest electronics manufacturer, threatened to commit suicide by leaping from their factory roof in protest at their working conditions.
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This is where ironically Marx made some astute observations
Karl Marx outlined the inherent tendency of capitalism towards overproduction in his seminal work, Das Kapital. According to Marx, in capitalism, improvements in technology and rising levels of productivity increase the amount of material wealth (or use values) in society while simultaneously diminishing the economic value of this wealth, thereby lowering the rate of profit—a tendency that leads to the paradox, characteristic of crises in capitalism, of “poverty in the midst of plenty,” or more precisely, crises of overproduction in the midst of underconsumption.
http://en.wikipedia.org/wiki/Overproduction
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Over production and lack of consumption is noted as one of the central causes of political instability ,its very ironic that the CCP policies have created massive over production .
Now the CCP puts it head into the monetary instablity lions mouth by expanding credit in a way that Marx himself warned against
Marx
“Talk about centralisation! The credit system, which has its focus in the so-called national banks and the big money-lenders and usurers surrounding them, constitutes enormous centralisation, and gives this class of parasites the fabulous power, not only to periodically despoil industrial capitalists, but also to interfere in actual production in a most dangerous manner— and this gang knows nothing about production and has nothing to do with it.”
These twin historic demons of political instability, over production and massive bank credit expansion and joined by the 3rd factor , which is highly educated and unemployed / under utilized youth.
The CCPs form of bastardized Marxism is about to bring the country to its knees in the same way as Marx foretold .
When this happens the commodity bubble fed by Chinese and western credit stimulus will collapse, which in turn will collapse the commodity economies of Australia and Canada.
Which in turn will drive up unemployment and bring Australia into a Minsky Moment
http://en.wikipedia.org/wiki/Minsky_moment
A Minsky moment is the economic phenomenon that occurs when over-indebted investors are forced to sell good assets to pay back their loans, causing sharp declines in financial markets and jumps in demand for cash.[1][2] In any credit cycle or business cycle it is the point when investors begin having cash flow problems due to the spiraling debt incurred in financing speculative investments. At this point no counterparty can be found to bid at the high asking prices previously quoted; consequently, a major sell-off begins leading to a sudden and precipitous collapse in market-clearing asset prices and a sharp drop in market liquidity.[1]
This will unravel the Australian RE bubble, forcing either massive borrowing or austerity onto the Australian government as its sources of revenue collapse.
