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.

Here's a couple of links worth a look:

http://abs.gov.au/articles/12-things-happened-australian-economy-march-quarter-2022

http://rba.gov.au/publications/smp/2022/may/economic-outlook.html

Sorry. I sent the two links to the wrong thread.

Here's the right link:

http://theconversatio0n.com/chinas-economic-recovery-depends-on-the-rest-of-the-world-135319

Trying again:

http://theconversation.com/chinas-economic-recovery-depends-on-the-rest-of-the-world-135319

We're told that China depends on the global economy for
its own recovery. It's large amount of exports to other countries
influence it's economy. A lot ot these countries are affected
by COVID. To ensure its economic recovery China should assist
these countries and improve its relations with its biggest
export destination - the United States.

Good to hear from you AC, making "cents" as usual, I've got a wallet full of Monopoly Money, as soon as it becomes legal tender I'll be a zilonair! Bugger Bitcoin, Monopoly Money tis the GO!

Most Western-mentality people tend to totally overlook the long-term strategies of China !

"PS. China's trade surplus is $100bn not $1T"
- Thats 100bn a month, not a year
http://www.usnews.com/news/business/articles/2022-07-13/china-trade-surplus-surges-to-record-as-exports-accelerate

"China’s monthly trade surplus soared to a record $97.9 billion in June as exports picked up after the easing of anti-virus controls that shut down Shanghai and disrupted trade."

So that's over a trillion trade surplus a year.

http://www.thebalance.com/u-s-trade-deficit-causes-effects-trade-partners-3306276
The annual trade deficit for 2021 was $859.1 billion, according to the U.S. Bureau of Economic Analysis (BEA).

China actually became global world hegemon years ago.
The west is sliding further backwards.

Hi Foxy,
"To ensure its economic recovery China should assist
these countries and improve its relations with its biggest
export destination - the United States."

China does assist many countries in development of infrastructure.
http://theconversation.com/china-is-financing-infrastructure-projects-around-the-world-many-could-harm-nature-and-indigenous-communities-168060

The US does not deliver any infrastructure to any other country.
They keep their status as leader of the 'free world' by conducting overthrows of other countries, making wars and trying to drag others down.
Why would China assist the US in any way when the US acts against Chinese interests?

http://news.yahoo.com/china-loan-pacific-island-nations-1-billion-124948819.html
http://www.skynews.com.au/australia-news/defence-and-foreign-affairs/united-states-to-announce-88-million-in-funding-for-pacific-islands-to-increase-presence-amid-chinas-growing-influence/news-story/6e28d1445df022fd39c4305340bc6292

China-Laos high-speed rail project expected to boost bilateral trade
http://youtu.be/wv39-3akgeU

Hi AC,

Thanks for the links.

I'm still learning.

AC,

That was my error, the $1T is correct. However, the trade surplus is not a good thing in itself. A country in an economic boom time will often be in a trade deficit as it buys machinery and materials.

The import of iron ore and production of steel are at record lows as the demand for construction etc falls.

Russia has a fantastic trade surplus, however, this is also largely due to its inability to buy anything. China at least doesn't have a hugely expensive war to fight. (and lose)

https://www.youtube.com/shorts/uwpqz40huWk

A Russian jet is being destroyed by a sidewinder.

FYI

From the ABC

https://www.youtube.com/watch?v=MFoK4cyDfL0

Communism with chinese characteristics has always been willing to use capitalism but it does not require it.

VOR,

The CCP has relied on capitalism to improve the lives and wealth of the people. Its incompetence and meddling have created a huge property bubble that has now burst and taken the life savings of millions of Chinese with it. The state debt is colossal and the repayments are huge.

People are now feeling poorer and spending less so the economy is winding down. What the CCP fears most is an uprising.