The Greatest depression is coming, are you ready?
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China Evergrande is ordered to liquidate, with over $300 billion in debt. Here's what that means.
https://finance.yahoo.com/news/china-evergrande-ordered-liquidate-over-111527295.html
When they sell their assets people will buy them up at a steep discount, as a result all other similar real estate holdings will be valued considerably less. Also, if the debt holders don't get their $300 billion back they also may have to sell assets themselves. This in turn will cause all bonds and loans of other real estate firms in China to valued lower (meaning they will have to pay a higher interest rate) and those holding the bonds may find themselves broke (bonds are frequently used as collateral). In other words this is a very big domino that is falling and will knock down other dominoes.
https://finance.yahoo.com/news/china-evergrande-ordered-liquidate-over-111527295.html
When they sell their assets people will buy them up at a steep discount, as a result all other similar real estate holdings will be valued considerably less. Also, if the debt holders don't get their $300 billion back they also may have to sell assets themselves. This in turn will cause all bonds and loans of other real estate firms in China to valued lower (meaning they will have to pay a higher interest rate) and those holding the bonds may find themselves broke (bonds are frequently used as collateral). In other words this is a very big domino that is falling and will knock down other dominoes.
The stock market is forward looking, so you get a little bit of a early warning sign. Over the last three years China's stock market has lost $6 trillion, however, during the last 3 years we have had 28% cumulative inflation, so if the stock market had risen 28% it would only be keeping pace with inflation. The index is down 23%, add that to 28% and you have a 50% drop in the value of the Chinese stock market adjusted for inflation.
Xi Jinping Scrambles to Overturn China’s $6 Trillion Stock Market Rout | Firstpost Tech & Trade
Xi Jinping Scrambles to Overturn China’s $6 Trillion Stock Market Rout | Firstpost Tech & Trade
A soft landing -- AI means bye bye workers
Employers BEGIN Mass Firing: 24,000 Tech Jobs in 7 Days, Media Layoffs, Small Biz and More
AI is opening the door for companies to layoff people and cut their payroll in half. That will enable these companies to have soft landing. What is good for business owners does not imply that it is good for business employees.
Employers BEGIN Mass Firing: 24,000 Tech Jobs in 7 Days, Media Layoffs, Small Biz and More
AI is opening the door for companies to layoff people and cut their payroll in half. That will enable these companies to have soft landing. What is good for business owners does not imply that it is good for business employees.
From 18,000 to 26 Points, Hong Kong’s Stock Market Plummets Like a Laxative Effect, 99% in Decline
The other major stock markets have not fallen. What we are seeing is the collapse of China while other markets do well. You have to understand that the manufacturing that China did has been replaced by 3d printers, robotics and machine learning. That is good for many businesses, they are seeing improvements in their business: faster, better, cheaper, safer. But it is devastating to the millions of Chinese that lost their jobs, about 50% unemployment, ghost cities, collapse of their real estate market, bankruptcies, etc.
The thing to realize is that what is "good" for the investor is not the same thing as what is good for the workers.
Also remember, China had the Olympics in 2008 and it seemed like they were ascendant, they had the olympics in 2022 as well and at that point it seemed we could start to see cracks in thy system, but no one saw this coming. How far have they fallen in the last two years!
I think the same is true of these other countries. Yes, AI will be great news for companies, terrible news for employees, and then devastating to the local economy.
The other major stock markets have not fallen. What we are seeing is the collapse of China while other markets do well. You have to understand that the manufacturing that China did has been replaced by 3d printers, robotics and machine learning. That is good for many businesses, they are seeing improvements in their business: faster, better, cheaper, safer. But it is devastating to the millions of Chinese that lost their jobs, about 50% unemployment, ghost cities, collapse of their real estate market, bankruptcies, etc.
The thing to realize is that what is "good" for the investor is not the same thing as what is good for the workers.
Also remember, China had the Olympics in 2008 and it seemed like they were ascendant, they had the olympics in 2022 as well and at that point it seemed we could start to see cracks in thy system, but no one saw this coming. How far have they fallen in the last two years!
I think the same is true of these other countries. Yes, AI will be great news for companies, terrible news for employees, and then devastating to the local economy.
40 Trillion Crisis: Two 'Shocking' Updates To Cover | Chinese Economy | US-China Conflict
We are looking at local government debt in China and it has ballooned due to graft and corruption. Government officials take bribes from various contracts. If they borrow money for a big real estate development and then pay contractors to do the job they will in turn take bribes. This is why they have the "Tofu dregs" projects. The government officials were so greedy in their demanding bribes that the quality of the work became horrendous. Concrete crumbles before their eyes. In addition to what is "on the books" there are also "off the books" loans which are calculated in the tens of trillions of yuan. Already the governments are paying for bonds by issuing new bonds (like paying your credit card with another credit card). This works when you have 5% growth or more, but now China is experiencing a -5% to GDP, in a situation like that the curtain is pulled back and you can see the little fat man who has been living off of graft. The country has hit the iceberg, just like the Titanic, and although it takes time to sink, the sinking of the economy is inevitable and unstoppable.
We are looking at local government debt in China and it has ballooned due to graft and corruption. Government officials take bribes from various contracts. If they borrow money for a big real estate development and then pay contractors to do the job they will in turn take bribes. This is why they have the "Tofu dregs" projects. The government officials were so greedy in their demanding bribes that the quality of the work became horrendous. Concrete crumbles before their eyes. In addition to what is "on the books" there are also "off the books" loans which are calculated in the tens of trillions of yuan. Already the governments are paying for bonds by issuing new bonds (like paying your credit card with another credit card). This works when you have 5% growth or more, but now China is experiencing a -5% to GDP, in a situation like that the curtain is pulled back and you can see the little fat man who has been living off of graft. The country has hit the iceberg, just like the Titanic, and although it takes time to sink, the sinking of the economy is inevitable and unstoppable.
Understanding how the price of silver and gold is manipulated
There are 390 ounces of "paper" silver being traded for every ounce of silver and 119 ounces of "paper" gold being traded for every ounce of gold.
So if you had to switch to silver or gold as a currency 389 people will get nothing and one person will get it all.
The problem is no one wants to hold physical silver and gold because a thief can steal that. But when you need it, then all those trading paper will get nothing, while those who have the physical metal will see the value skyrocket.
There are 390 ounces of "paper" silver being traded for every ounce of silver and 119 ounces of "paper" gold being traded for every ounce of gold.
So if you had to switch to silver or gold as a currency 389 people will get nothing and one person will get it all.
The problem is no one wants to hold physical silver and gold because a thief can steal that. But when you need it, then all those trading paper will get nothing, while those who have the physical metal will see the value skyrocket.
64% of Americans live paycheck to paycheck
44% of Americans have less than $1,000 in savings.
So the government is passing a patronage package and a welfare package for illegal immigrants.
The patronage package — 120k richest families get the biggest benefit, bottom 88 million get the least. Giving META subsidies (tax rate drops from 25% to -2%). Cost for 1 year of schooling for an immigrant is 50k a year, firms get cheap labor but taxpayers pay the bill.
44% of Americans have less than $1,000 in savings.
So the government is passing a patronage package and a welfare package for illegal immigrants.
The patronage package — 120k richest families get the biggest benefit, bottom 88 million get the least. Giving META subsidies (tax rate drops from 25% to -2%). Cost for 1 year of schooling for an immigrant is 50k a year, firms get cheap labor but taxpayers pay the bill.