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September 6, 2022 | Millions of Chinese on Lockdown

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

At least 65 people are dead after a 6.8 magnitude earthquake rocked the province of Sichuan. This comes as 21 million people in Chengdu are confined to their homes as China has placed yet another city on a strict lockdown to adhere to its zero COVID policy. In fact, 65 million people in 33 cities are on some level of lockdown in China.

The government places more concern on COVID than an actual natural disaster. Lockdowns create a domino effect. People began panic buying supplies after seeing the starvation and extreme rationing that occurred during the last lockdown when the government was unable to adequately provide supplies to those they confined. Businesses will suffer immensely. Children in at least 10 provinces will be unable to attend school until everyone tests negative for the virus.

Drones are flying around Chengdu, reminding the people to stay inside and obey. This is an example of what could happen when government has complete power over the people. It can also affect the global economy, as we saw when Shenzhen entered a lockdown, closed the ports, and prolonged the supply chain crisis. Government’s abuse of power is yet another reason why it is hard for the central banks to forecast economic recovery. According to our computers, the recovery will be a slow process.

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September 6th, 2022

Posted In: Armstrong Economics

One Comment

  • Gordon S Watson says:

    oddly enough, we don’t see these extremely worrisome reports on the front pages of the newspapers in Canada
    I guess the 600 million $ subsidy he pays to the lapdog media keeps them well in mind of the Central Party line, so citizens here won’t awaken to what Justin Castro Trudeau has in mind, here … he, having more than once voiced his admiration for the Red Fascist model practiced in China

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