China Evergrande Collapse

[biglentil]

22 percent collapse in iron ore last week . . . .

Adios inflation . . . .

Dollars can only come into existence as debt. If that debt is not paid back what value do dollars have? We are in the death throws of the fiat monetary system. When debts are not repayed confidence is lost, without confidence in the dollar there is no purchasing power.

[jazz]

Errol, sources say Blackrock is the biggest holder of this firm.

The same firm buying up blocks of real estate in the US and runs ETF exchanges.

I suspect a bailout is being prepped.

[shtferbrains]

Dollars can only come into existence as debt. If that debt is not paid back what value do dollars have? We are in the death throws of the fiat monetary system. When debts are not repayed confidence is lost, without confidence in the dollar there is no purchasing power.

So where do you park accumulated wealth as an individual?
With liquidity?

[biglentil]

So where do you park accumulated wealth as an individual?
With liquidity?

Commodities in general, preferably physical. Hold onto grain inventory, prebuy inputs, fill those fuel tanks. If there is a banking crisis commodities we will likely experience a short term drop, followed by hyperinflation. That short term dip I anticipate will be very short lived. Following the 2008 crisis it lasted almost a year, after March 2020 flash crash it lasted but a few months, this crash may only last a few weeks before physical goods skyrocket.

Virtually every hyperinflationary period in history was caused by a massive crash followed by a loss of confidence. That loss of confidence it next to impossible to regain with fiat money. This time around they will try with central bank digital currency and universal basic income. Their goal is to kill the dollar to implement that monetary system of total control. All part of the notso 'Great Reset'.

[biglentil]

Jazz Lehman did not have to happen if the fed would of bailed out their $60b in debt. They let Lehman fall on purpose. I anticipate Blackrock a financier of CB's would prefer a wave of foreclosures they can scoop up for pennies on the $.

[errolanderson]

Why this default is such a big deal . . .

In the U.S, real estate accounts for about 30 percent of consumer wealth.

In China, real estate accounts for 70 percent of consumer wealth. China consumerism has just taken a massive blow.

[shtferbrains]

Why this default is such a big deal . . .

In the U.S, real estate accounts for about 30 percent of consumer wealth.

In China, real estate accounts for 70 percent of consumer wealth. China consumerism has just taken a massive blow.

1.5 million customers have given them deposits on future housing.
The same thing is going on here. As an example around Toronto it is looked at as a easy profit opportunity to put a deposit on a house to be built 3 years in the future to fix the price and flip it prior to being built taking some of the huge appreciation in the housing market.
Too good to be true?
Definently smells like a ponzi.
Might be Evergrande peddling them?

[WiltonRanch]

Think the elephant in the room here is Chinas house of cards cannot stand forever. They have been buying our commodities and shipping manufactured goods back to us at prices lower than what we can but as their standard of living improves and the population ages they lose the advantage of cheap labour, if they haven’t already have. Remember too that the CCP wants to become a world power rather than a local irritant before they get too old. Hence, they subsidize certain industries to outcompete domestic manufacturers in foreign markets to put them out of business. Now, this collapse is merely a symptom of a planned economy experiencing true economics.

[jazz]

Why this default is such a big deal . . .

In the U.S, real estate accounts for about 30 percent of consumer wealth.

In China, real estate accounts for 70 percent of consumer wealth. China consumerism has just taken a massive blow.

Chinas off the books lending through peer to peer networks and shadow banking are an order of magnitude larger than this company.

If it blows, it goes there first.

But we know their entire economy is a ponzi. But ponzis can go on a long time.

[shtferbrains]

Evergrande is active in GTA according to a freind so there is your Canadian connection.