China Trillion Yuan Debt Disaster: Stimulus Fails to Deliver Economic Growth & Investment Collapses - Joe Blogs

[TexasTowelie]

In this video I investigate what is happening in the Chinese Economy. China has announced that is raising 1 TRILLION YUAN of debt in the form of long dated bonds of up to 50 years. Over the past few years China has increased the amount of Government Debt to STIMULATE the Economy however this is now having a limited impact due to companies using the new debt to REFINANCE old debt and also to invest into financial instruments rather than for business purposes.

Chapters:
0:00 Intro
3:27 STOCK MARKET
7:16 FOREIGN INVESTMENT
10:10 DEBT STIMULUS
12:32 RHODIUM RESEARCH
13:56 PROPERTY LENDING
16:48 GOVERNMENT DEBT
18:13 SUMMARY & CONCLUSION

[BobTheSubgenius]

1. Re-arranging deck chairs on the Titanic.

China's medium-term outlook is pretty hopeless, let alone the long term. They are deep into a depopulation bomb, private capital is all but exhausted, so Xi falls back on their "tried and true" - printing money? Their labour force is increasingly uncompetitive with other Asian countries, so the marketplace of cheap, shitty goods is slipping through their hands, as well.

With literally millions of unsold, uninhabitable living spaces, and economic policies that seem to wander around at whim, they can't even scare most countries with what seems like an outsized military. They have no way to project anything but limited power abroad.

A picket line of destroyers or other ships of war parked in the Indian Basin to stop Chinese commerce in the case of a truly belligerent China, and they would be starving in the dark in 6 months. Between China and Russian, there is a very real potential of being dragged into a worldwide depression. China has a beyond critical lack of fuel, industrial inputs, food and even the inputs needed to grow food at scale.

As if we shouldn't have recognized it all along, we in North America are blessed beyond belief, especially if we can build out the manufacturing capability to be self-sustaining in time. If any region in the world can weather this potential catastrophe relatively unscathed, or at least without deep, mortal wounds, it's this one.