Is China on the Verge of Economic Collapse?
On 12th March 2022, we came across an interesting prediction by WallStreetBets, that China was more broke than ever. Now, there is even further confirmation flying in from all directions.
To quote the rather pro-Chinese Bloomberg on 24th April 2022,
China’s property crisis has triggered an unprecedented wave of defaults in the world’s second-largest debt market. That means for some companies hired to clean up the fallout, business couldn’t be better.
Restructuring and financial advisers ranging from Alvarez & Marsal Inc. to boutique firms such as Admiralty Harbour Capital Ltd. have been expanding their Asia teams faster than ever to keep pace with the demand. They are now vying for growing opportunities as some of the biggest names in Chinese real estate including China Evergrande Group and Kaisa Group Holdings Ltd. undergo a historic revamp after failing to pay creditors.
The arrival of these experts is a pivotal moment, as well as a sign of maturity, for China’s relatively young credit market. As authorities push for a durable fix to reduce financial risks without triggering a systemic collapse, troubled companies long used to being rescued by the state are realizing Beijing will no longer stop them from going bust. The message is clear: Defaults are crucial to curb moral hazard and reprice risk despite the short-term pain.
In other words, systemic collapse is on the horizon. Some may argue that this may not be much different from the boom-bust cycles the same Phoenicians overlords have engineered into the American economy, which again, have still not obliterated the American economy. While this is partly true, there is a big difference. In China, the Phoenicians get to unleash their greed without any kind of restraint whatsoever. There are literally no checks and balances. Which means the Chinese economy may get cratered spectacularly.
If there ever was a real investigation into the scale of the looting, the entire Communist Party of China would have to be disbanded. Recall that the Communist Party of China is a foreign construct, meticulously grafted onto Chinese society during World War II. Even Mao’s little Red Book was ghost-authored by a certain Epstein. The Phoenicians do not want to discard all that hard work. (Whereas on the other hand, some genuine (but suppressed) Chinese intellectuals regarded the Communist Party of China as “unhistorical” and “un-Chinese”).
And so, an alternate narrative has been created to prevent people from spilling onto the streets and taking matters into their own hands. We are being told that because of a new wave of Covid-19, 193 million people are now under full or partial lockdowns in 23 cities across China!
Coincidentally, the lockdowns began in, and were the harshest in Shanghai, the financial capital of China, where the effects of of economic collapse would be most acutely felt (1, 2). Food shortages have been created so that people remain in a state of insecurity and submission. Entire apartment blocks have had their residents locked in. Some trapped Chinese are wondering if the so-called testing measures and makeshift hospitals are an attempt to deliberately infect them with Covid-19.
- The Economic Collapse will not be blamed on the Communist Party of China, but on the Zero-Covid Lockdowns of President Xi. There is already a major shift in mainstream reporting, which is trying hard to push the idea that the Economic Collapse came after the recent Lockdowns (No, it didn’t).
- There may be a semi-fake “Revolution” in which President Xi will be forced to step down (or will fake his death). Phoenician overlord George Soros is thus suddenly calling for “Revolution” in China. But the Communist Party of China will be spared from the wrath of the masses.
- As a distraction, China may start a war with Taiwan or elsewhere. Wars are a time-tested method of distracting a distressed population.
Some have speculated that Canada’s dismal 0.7% growth rate may be connected to its owners investing heavily into the Chinese economy. Only time will tell.