"Evergrande operates and develops 1,300 real estate projects across China and employs 200,000 people. The company financed its breakneck expansion with credit and bond issues. But the pandemic has paralyzed its operations. Its debt equates to two percent of Chinese Gross Domestic Product."
No doubt Joe will help them out, because they’re “too big to fail”.
The Chinese economy is the industrial powerhouse of the world.
It will come through the current decade as surely as the USA did in the 1930’s.
However, the Chinese government response will be costly. But bear in mind that the US national debt has soared in the past two years.
Don’t expect the Chinese government to squander $3.5 trillion though.
A friend of mine at Franklin Templeton says the Chicom real estate market lost over $1 trillion in value in the past business day. It would be even worse but their government stopped trading.
Meanwhile our own markets are starting to get squirrely.
Bubbles everywhere, Worldwide. Will this be the big trigger for popping the bubbles??
It's been over a century since China paid American holders of Chinese treasuries for the "railroad" debt of the Qing dynasty. The unpaid debt with interest is over $1 trillion. Obviously the original owners have passed away, but China still owes their heirs. Those unpaid notes are so worthless they've been selling on ebay as historic mementos.
Gold, silver, brass, lead.
Screw the rest.
So the Wall Street geniuses almost destroyed the world in 2008 with their Credit Default Swaps, and now they are still playing the same game.
China is red
Soylent is green
They want us all dead
So COVID-19
Note to Deep State: Put Trump back.
NOW.
Amazing how fast we went from “China is going to own the USA and everything in it” to “China is in collapse”.
It is my contention that the supply chain problems are in large part because Communist China can no longer afford to support exports at a loss.
It had to end some time. I’ve been saying this for years. It was never a question of it happening, but when?