This is John Bachelor. Later on today speaking at length with my colleague Mary Kessel, Executive Vice President

Stephen's Incorporated, former senior advisor to the Secretary of State about the collapsing Chinese economy.

The miracle of the 90s and early part of this century

is now in decline, dramatic decline,

deflation, properties, values, collapsing, consumers reluctant and fearful, wages not being paid,

municipalities so overwhelmed with debt that they're frozen.

All of this is a consequence of bad governance,

bad rule by the Chinese Communist Party and what is to be done? Mary very carefully

analyzes this. It's not about the Chinese people. This is about the

Chinese Communist Party, the top of the elite, that command everything, the

surveillance, the military, the police, the way you think, at school, the way you educate your children,

everything. And until recently they commanded one child, then they turned to two child, now

three child command command

commanding in the most intimate decisions man and woman can make to marry and

to have children.

So what is the problem in China?

Mary very carefully analyzes. Here's Mary Kessel, many years in

Hong Kong for the Wall Street Journal editorial page observing the mainland now in collapse.

I think it's important to distinguish between the party and the Chinese people and not to conflate the two.

Because you're right, the Chinese people are remarkably hard-working, entrepreneurial,

very capable.

And you see how they've prospered in free nations,

...