The world economy is tottering. This week it has been buffeted by two extremely turbulent financial storms - Greece and, suddenly, China, the world’s second largest economy. Globally, the system is extremely unbalanced, with massive wealth accumulating in tiny handfuls whilst the billioned masses must keep borrowing from these billionaires to make ends meet. This top heavy, blind and irrational system cannot stand on its own feet and the nation states are buckling under the weight. The sudden stock market collapse in China has been so vast that even the mighty Chinese government is incapable of controlling it.

Thousands of protesters violently clashed with authorities last Saturday in Linshui County, located in eastern Sichuan province. The protesters demanded that a proposed high speed railway pass through Linshui. They were met with batons and rubber bullets, with hundreds reportedly being injured by the police and tactical units. The heavy handed response of the Chinese state to these protests reveals the instability and weakness of the regime.

Newly released figures show that the Chinese economy in 2014 experienced its lowest economic growth since 1990. Furthermore, the International Monetary Fund downgraded its 2015 growth projection for China from 7.1% to 6.8%. According to the Financial Times, 30 out of China’s 31 provinces had missed their growth targets for 2014 – the only one which didn’t was Tibet, by far the country’s smallest regional economy.

Despite all the Keynesian experiments and the monetary stimulus, China has failed to escape the global economic crisis. In 2014 its economic growth dropped to 7.4%, the weakest in 24 years. For the first time in 16 years growth missed the government’s annual target (7.5%).

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