by Amy S.
Elon Musk: “China’s ENTIRE Economy Is About To Collapse” | Elon Musk claims China is on the threshold of a massive disaster due to the country’s excessive development of apartments and skyscrapers, which has led to the creation of too many housing units.
China’s economy could be on the verge of collapse thanks to a major problem in their housing market. In China tens of thousands of people are boycotting their mortgage payments, developers are defaulting on debt, and the banking system is now under huge financial stress.
Just a few months ago 5 major Chinese banks had to freeze customer withdrawals which led to major protests across the country. But how has this financial crisis formed, and exactly how bad could it get?
I don’t like to throw this word around, but…what the fuck happening?
China’s ENTIRE Economy Will Collapse In 34 Days
It’s Over: China’s ENTIRE Economy Is About To Collapse
China’s Economic Crisis Is About To Get MUCH Worse
Is China’s economy actually collapsing or is this just a load of bull?
That’s at the center of China’s economy and right now it is in dire fucking straits.
Real estate is generally considered a safe investment like bonds but over in China, real estate investing is more tantamount to gambling. This is because housing prices have been artificially inflated and have been for years.
The Chinese government has been propping up the housing market by buying up vacant apartments nobody wants to live in and pumping money into the construction industry. At one point citizens were pouring their life savings into properties that weren’t even built yet, and never would be.
“There has been all this fictitious wealth that has been created by surging real estate prices that is just not justified,” Michael Pettis, a professor of finance at Peking University told The New York Times.
All of this “fake business” gave Chinese citizens a false sense of economic security and opulence, when really there was nothing.
It’s like a giant Ponzi scheme that’s about to come crashing down.
Meanwhile, unsold apartments are piling up, unemployment is at a record high, inflation is the highest it’s been in two years, Evergrande and other large property developers have spiraled into default, economic growth has slowed to shit behind Beijing’s zero-Covid policy, and people are beginning to protest.
In fact, in more than 100 cities across China, hundreds of thousands of Chinese homeowners are boycotting the housing market and refusing to repay loans on unfinished properties.
“Life is extremely difficult, and we can no longer afford the monthly mortgage,” Chinese homeowners wrote in a letter to local officials in July. “We have to take risks out of desperation and follow the path of a mortgage strike.”
I can’t keep track of all these doomsday predictions but one thing is for sure, China’s economy isn’t going to collapse.
It’ll go through a depression, sure. Likely like the 2008 financial crisis in the West but worse.
Yet, it’s not a collapse. The rest of the world cannot afford it; so even if China fucks up hard they will be supported going forward.
This does, however, mean that China’s existing issues — such as high levels of debt, a shrinking middle class, and an aging population — will be exacerbated and could result in long-term economic calamity.
Michael Pettis had a similar conclusion:
“Domestic financial conditions are such that China is still unlikely to have a financial crisis or a sharp economic contraction,” he said. “It is much more likely, in my opinion, that the country will face a very long, Japan-style period of low growth.”
China’s Collapse Will Happen This Time, I Promise
Before I go and make a turkey sandwich with tomato, let me just say, doesn’t this redundant, dissipated influx of anti-Chinese content imply there’s some kind of propaganda here?
Suddenly you’ve got all these people strongarming you to believe something that’s not entirely clear. Is this to get away from the fact that Western economies are completely crippled at the knees right now?
I think it’s more that the “content sharks” smell blood in the water and are going for the kill regardless of whether or not the prey is real.
Or to explain that analogy, there are actual signs of a collapse, but these channels are capitalizing on it regardless of whether or not it’ll happen imminently. I guess I’ve been there too: Example 1 and Example 2.
Either way, China is weakening on the global stage and there is a lot of money to be made covering its fall. But will it actually collapse?
A later recession is most likely, one beginning in late 2023 or early 2024. Predictions of recession timing are much more difficult than the eventual arrival of recession, so this forecast should be taken with a grain a salt. What can people do now to prepare for recession?
The Devaluation of the dollar has been happening for the last 70 years or so, especially after 1971. The devaluation of the dollar is a monetary phenomenon and typically driven by lowering interest rates by the federal reserve to increase credit and liquidity. From the moment of the launch of quantitative easing (QE), worried investors have asked, will the U.S. dollar collapse?There are some probable scenarios that might cause a precipitous crisis for the dollar. The most authentic is the dual-threat of high inflation and high debt, a scenario in which increasing consumer prices force the Fed to raise interest rates sharply. Much of the national debt is made up of relatively short-term instruments, so a spike in rates would act like an adjustable-rate mortgage after the teaser period ends. If the U.S. government struggled to afford its interest payments, foreign creditors could dump the dollar and trigger an economic collapse. A reset means the banksters will have to increase the price of the gold.
They own tons of it so that they can cover their derivative positions … The global currency reset is needed to hinder the most significant and fastest increase in global debt in half a century from exploding … But for the average middle-class family or pensioner on Social Security, it will mean “huge inflation”… As the reset will imply “an exponential increase in the quantity of money” by the Fed (meaning high inflation in the prices of everything) … Excluding for maybe “some food items” that are subsidized by the government to impede people “with pensions linked to the chained CPI” from literally starving!!
When you weaponize a reserve currency for personal gain such as what Wall Street and The Fed have done, on behalf of corporate interests that provide little-to-no benefit to even your own population?
The criminal Federal Reserve Bank will bring this global recession. There is nothing Federal about the Federal Reserve Bank. It is a private bank incorporated in 1913. They print money out of thin air; it is Monopoly money that has no real value.
The Federal Reserve creates booms and busts, so they can robe the people of their assets. It cost the Private Federal Reserve bank $230.00 in ink, paper, and labor to print 10,000 bills of any denomination, 1,5,10,20,50, and 100 dollar bill. They then lend it to the Federal Government for face value plus interest. We have a fake debt to these criminals. They are the biggest counterfeit ring in the world. This upcoming recession was discussed as far back as 2014 from what I remember. It’s based on calculations of countless business/political/economic/world events and is pretty accurate.
This video explains the steps one should take to prepare for an Economic Collapse
The recession began in 2019 and will start to ramp up. Expect another housing crash as prices in places like the Bay Area of California are grossly inflated by Chinese buyers and Silicon Valley. Prices are $200k over real value, and this is the peak. Only idiots are buying homes right now, as the value will crash and level out, and you’ll be in the hole. This recession will likely last until 2025. Expect 2022 – 2023 to be the worst of it. The economy always crashes every 18 years, and the most influential factor in this is land values, they rise on hope value then crash when we cannot afford the land and borrowed too much to get access to land.
A mid-cycle dip every nine years – so next year 2023/2024 a dip and the big crash in 2026. Barring wars and natural disasters economies have followed this pattern for hundreds of years. This is well known to Georgist economists, and the 2008 recession was well predicted by economists like Fred Harrison.
The economy expands and contracts at the will of the shareholders of the Federal Reserve bank, which is a privately owned institution. The Oligarchs take profits from the markets during both expansions and contractions while the US Citizen suffers during the contractions. A US President is a scapegoat to be cast out of the Wall Street temple tent into the wilderness to carry off the sins of the Oligarchs, which happens right before the high priests of the FED slaughter the kids of America upon the fiery altar of corporate warfare with great fanfare. It’s the banks that are the real problem, and until you wake up to that fact, they will ever so gently continue to squeeze your balls until you don’t even have a dime left.
They are blood-sucking vampires. And they own your property if they foreclose. Nobody can predict the future. But we can learn from the past. The stock market has virtually gone nowhere over the past 19 months — not a good sign. Freight-hauling companies like railroads, truckers, and airborne, have all reported that freight quantities are declining — not a good sign. The “smart money” has been fleeing the stock market since last September or so, and has made a ton of money betting on bonds over stocks in that time. Not a good sign. The thing to remember is that economies and stock markets move glacially. They may flash signals that indicate possible event months, sometimes years in advance.
The trade war has, to this point, targeted Canadian lumber on 1/1/2018; lumber prices in the US went up 41% (the tariff was 21%), steel and aluminum (GM and Ford both reported that the tariffs cost them $1 billion in lost profits), and the 25% tariff on components, and now, the 10% tariff for consumer products.
The recent tariffs targeted the not so easy to spot goods, where the imported components were not the majority of the finished goods. So the effect of tariffs was marginal. The 25% tariffs are directly going to affect consumer goods, meaning you’ll likely see iPhones ratchet up in price by 10%.
The concern, and it’s significant and legitimate, is that Trump will ratchet those tariffs up to 25% in the not too distant future, and that will be noticeable to American consumers, who in spite of what the President keeps repeating, actually do pay the tariffs, and not “China.” Will that lead to a recession? If we get a recession sometime in the next 18 months, people will look back and say that the beginning occurred in early 2018 and just continued to deepen, and they’ll cite those factors I did before.
You have to understand that markets and economies are macro devices that turn about as slowly as the Queen Mary, and unless you’re watching closely, you never even see, detect, or notice the elements leading up to a recession, except in retrospect. The trick, if there is one, is to study history, especially the history of market crashes and economic debacles to see what the advance signs were, and from that, learn to see them in the present. They don’t always lead to a recession, but all recessions start with them. Forewarned is forearmed, and those who don’t know their history are doomed to repeat it.