When The Economy Falls Into The Ditch

How Sri Lanka fell into the pit.

Executive Summary:  Debt.

An object lesson for all governments, not the least ours.  The only good thing about this debacle is that the ChiComs are going to take it between the cheeks.

Footnote:  the World Bank gave all sorts of accolades to Sri Lanka for its economic growth, even though the economy was built on foreign loans which the country had no chance of ever repaying.  So much for the banking system…

Further:

9 comments

  1. Good thing that the US is not run by a single family dynasty. Instead , we have multiple competing ones that have been trading power back and forth.

    That’s better … right???

  2. Another disaster that is about to explode “Unexpectedly”.
    Why can’t our Best & Brightest warn us about these situations?

  3. Not just debt, more like their version of the Green New Deal writ large. Their socialist PM bent their farmers over the De-Barked Squealing Log (much like what is happening to Dutch farmers) and now they aren’t just fucked–they’re fucked and hungry.

    They are dead-ass broke now, no choice but to borrow mo’ money from China they can’t pay back, so Sri Lanka will become another brick in the Brick and Road strategy of China (see Pakistan, etc, etc.)

    1. Not sure of the accuracy, but I have seen reports that the reason for the Sri Lankan gov pushing organic farming was they were so broke they couldn’t import enough fertilizer, pesticides etc. to keep their farms going. The fact that they could boast about their going Green was a bonus.

  4. I think the ChiComs are more interested in incorporating Ceylon into THEIR sphere of influence rather than financial reimbursement.

    I’m stealing from your “Let Africa Sink” article but there’s not enough money in the world to fix Africa, Sri Lanka, Detroit, LA etc. because those areas don’t want to be fixed. They are built off skimming the grift.

    It should be a cautionary example for the rest of the USA too. But it won’t be. Because here we have the “right” people in charge.

    God its like watching a toddler play with a lighter, sitting in a tub of gasoline. You can see the disaster coming.

  5. There was a book about the collapse of Venezuela that was supposed to be rather good. The title escapes me presently.

    Personal debt is like a cancer and can suck the individual into poverty. the same for corporate debt. Government debt can’t be good. At some point the piper will demand to be paid and when that payment is delayed, partial or simply not there, the piper will have their pound of flesh either with higher interest rates or taxes like we have never seen before. Of course with higher taxes comes lowered productivity because why work harder to earn more when the taxman takes a bigger share and that begins the cycle of lowered tax revenue.

    There are many states in the situation where they have liabilities that outpace their revenue such as Commie-fornia, Ill-annoy, New Yuck, Conneticutistan, even Kentucky and other states not to mention towns, counties and the Federales. It’s a house of cards waiting to collapse. Time and date TBD.

    JQ

  6. I’m sure the ChiComs will be more than happy to help out Sri Lanka and other countries since they are playing the long game of world domination. I’m not up on their influence on the World Money fund, etc but I wouldn’t be surprised if the ChiComs are waging economic warfare to destroy any country they can in order to leverage that country to become under their influence.

    JQ

  7. Panama……Since the ChiComs are a major player on at least one end of the canal, this will not end well.

Comments are closed.