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RE: Oompa Loompa Now: The coming Apocalypse
I think Trump was exactly right in talking about this.
China is a sorry example of what happens when the state meddles with the economy too much. The large imbalances created by force (such as the real estate bubble artificially inflated by the government - there is no independent central bank or independent anything in China for that matter) have caused Chinese capital to want to flee the country. Hence the Bitcoin enthusiasm of the Chinese and the subsequent government crackdown. For example, the Vancouver, BC, housing bubble has been created largely by Chinese money. My relatives in their fifties who live there own ordinary houses that are now valued at over 1.5 million CAD. Their children are incapable of buying anything there.
This is happening in more then just Vancouver. Trump is actually looking to limit investment from China into the US. They are buying up companies, real estate, and bonds. These investments drive up costs to US residents causing bubbles. Once the bubble is large enough they can pull out creating a vacuum and the end of the bubble. This leaves US residents, banks, investors, and the government on the hook as prices collapse.