As the effect of the housing market crash in China is starting to work its way through the economy and Covid is out of control, the CCP is desperately trying to buoy the economy with a massive debt-fueled spending spree in construction.

In China's command economy banks have often been directed to lend money to financially unsound enterprises. However, with mounting debts cracks are starting to show as several regional banks go bankrupt with 1000s of depositors losing their life savings.

With the stock market losing nearly 50% of its value over the last 12 months, and regional governments cutting back on spending and salaries, consumer confidence is at rock bottom.

Finally, the chickens are coming home to roost.

the chickens are coming home to roost.
shadowminister,
In China perhaps but in Australia it'll be vultures coming home to roost !

SM,

You must be rather miffed that leading economic forecasters such as the Word Bank don't share your ultra pessimistic view of the Chinese economy. Pray tell which countries are not likely to suffer an economic downturn in the short to medium term? Australia, America, etc etc.

p/s Economic growth is forecast at 5% this year for China, down from the long term 10% pa since 1978. In America they are looking at a recession!

While Chinese banks might be directed to fund dud enterprises (no skin off our noses) Australian banks are not lending money to proven and long time winners such as coal mining and coal powered electricity; and the economy is suffering.

Which country is the sillier?

US is 30 trillion in debt and China is 45 trillion in debt.
The difference is China has an industrial base and trade surplus of 1 trillion whilst the US has a trade deficit of about a trillion.
The US is losing all of is dollar denominated global trade, and will not be the worlds reserve currency for much longer.
Other countries are following Russia in moving to systems that abandon the US dollar.
Russia, China, India, Saudi Arabia, Brazil, Iran.
- More countries are joining BRICS

The question I want to know is in regards to the 'Great Reset'.
How much of all this is planned?
Here's Klaus Schwab boasting about 'penetrating the governments'
http://youtu.be/_2IP_LQ4A6A

Especially when you look at Netherlands and others 'War on Food', and Bill Gates buying up a large percentage of US farmland.
I've heard talk they plan to get rid of national currencies under a global collapse and start a global digital currency, not sure how true any of it is.

I think the world's gone crazy, there's nothing I can point to which seems even close to being normal anymore.
- And it's quite concerning.

Paul and AC,

Firstly, only the most optimistic analysts are predicting that China will make its 5.5% growth target, and China's growth rate hasn't been 10% since 2010. Even then the roughly 4% growth predicted is only possible with China turning on a firehose of spending funded by debt which will push China's massive debt even higher.

Secondly, this firehose of cash does not resolve the underlying problems that China is facing. Primarily:
-The housing market bubble (29% of GDP) has burst and the private demand for construction has collapsed as have house prices and a huge chunk of people's savings.
-The Chinese economy is dominated by large inefficient state-owned industries that are reliant on state subsidies.
-The state has diverted vast resources to the military (15% of GDP) which is hugely corrupt and has starved regional governments of cash. Until recently regional governments funded this by selling land to housing developers.
-The banking system was forced to provide loans based on politics not on solvency leaving banks with swathes of bad loans

This does not even take into account the 100m people locked down due to covid or the demographic crisis rearing its head.

PS. China's trade surplus is $100bn not $1T
The $US is likely to be the international currency for some time as it is still by far the most traded currency in the world. The only other likely competitor would be the Euro. The highly state-controlled Russian and Chinese have no chance.

Finally, China has managed to piss off nearly all its neighbours.