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