Watching The Collapse Of China

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China is in a heap of trouble. Their GDP went from 7.9% down to 3.9% in one quarter. Granted this is still a tremendous growth rate yet when you are a country of 1.4 billion AND the world's leading exporter, a high growth rate is a necessity.

In this video I discuss how the Evergrande situation is not being contained. The governmetn already decided it is going to hang the international (USD based debt) out to dry. All resources are to be focused at home. This is a death blow since the international capital markets are going to basically shut down to the Chinese.

One other thing we need to keep in mind is who has all this debt. What Western institutions are at risk? Since this is just the tip, who is going to get obliterated as more debt follows Evergrande and Anatasia?


▶️ 3Speak



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Bang, I did it again... I just rehived your post!
!PIZZA
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Chinas Citizens are a lot braver than the Government thinks. They will push back and the Military and Police will eventually side with the People

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That is what the CCP always has to battle against. They do all they can to try and keep things subdued.

The numbers simply outnumber the centralized committee.

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If China would have played its game smart with Bitcoin, it wouldn't probably need to sell US treasuries and get dollars. Kicking Bitcoin out of the country and placing the ball on the US field is probably China's worst mistake made the past century.

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That might be true but it is likely this situation would have resulted regardless. The housing market was nuts for a while.

We will see how the rest unfolds.

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China might (if not already) trigger another global crisis. I wonder where crypto will position in such an equation...

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It could although it might be contained considering the fact that there is a lot of saving in China. The wealth of the Chinese people could be wiped very rapidly.

Of course, it all depends upon how much more there is and how the banks are affected.

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A Chinese Economic crisis won't be good for the crypto space if it signals a global financial meltdown. Then again, it might also usher the blockchain into new levels of relevance and importance. Let's see how all this plays out

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Hard to tell. Logic says that we should see a pullback in cryptocurrency if there is a meltdown.

Of course, it could help to push things in a different direction with people looking for safety in cryptocurrency.

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China raised dollars from their bonds a little while ago and today Evergrande has enough to pay off their debt once so it doesn't default. Obviously the situation there in China isn't good. Will China raise more money so other companies won't default? I don't know but if they did default, everything would of fallen apart so they had no choice.

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They fended off the first round of bonds but they are far from in the clear. Now we know why the Chinese raised the USD.

They are going to have a tough time keeping it all together. It is a question of confidence in international matters. We need to remember that when looking at these things.

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Yes but there are only so many treasuries they can sell before they need to buy off more from the open market. So this is just a band aid on the current situation. Evergrande has two types of bonds: yuan and USD. Obviously they released quite a bit of USD bonds because they were betting that the dollar would go down compared to the yuan.

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Their GDP went from 7.9% down to 3.9% in one quarter.

They have a long history of lying about their GDP numbers. So the true figure is possibly significantly less than what they’re reporting,

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Summary:
The video focuses on the current economic situation in China and its potential ramifications on a global scale. Task discusses the significant drop in China's GDP growth rate, the challenges they are facing with increasing unemployment, rolling blackouts, canceled orders, and social unrest. He explains how China is selling off US treasuries due to a global dollar shortage, declining trade surpluses, and defaults on US dollar-based debt by Chinese developers. Task predicts that a lot of debt out of China will result in a total loss and emphasizes the importance of monitoring the situation for the next six months.

Detailed Article:
Task starts by highlighting the unprecedented collapse in China's economy, noting a significant drop in GDP growth rate from 7.9% to 4.9% in a quarter. This decline is attributed to various issues such as rolling blackouts, rising unemployment, canceled orders, and social unrest. He draws parallels between China's current situation and Soviet-style economic control, emphasizing China's economic significance globally compared to the Soviet Union.

The discussion then shifts to China selling off US treasuries due to a global dollar shortage rather than assumptions of weakening US currency. Task explains how China's decreasing trade surpluses with countries like Japan and the US, along with the impact of global lockdowns, have led to a shortage of dollars, crucial for purchasing essential commodities like food and oil.

Task predicts that defaulting Chinese developers, such as Evergrande, will have rippling effects on Western institutions and flags the importance of tracking the debt's impact on European and American banks, hedge funds, and insurance companies. He suggests that a significant portion of Chinese debt might end up as total losses, underscoring the Chinese Communist Party's focus on maintaining control domestically, even at the expense of international bondholders.

Furthermore, Task discusses geopolitical tensions involving Chinese vessels being confronted by countries like Russia, Peru, and the United States' reduced intervention in such scenarios. He underscores the strain on China's naval capabilities in navigating these challenges against countries like the US, Japan, Australia, and others.

In conclusion, Task emphasizes the critical need to monitor China's economic downturn closely, particularly regarding defaults on US dollar-based debt, as it could have lasting impacts on global financial systems and institutions. The overarching message is that China's economic challenges are not isolated and could have substantial implications worldwide.

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