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Post by tennessean on Oct 4, 2021 10:33:18 GMT -6
Will the economic dominoes fall, starting with this company in China, causing an economic fallout as did the Lehman brother's failure did.
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Post by Greg on Oct 4, 2021 21:54:00 GMT -6
Too big to fail has taken on a new level of ominous.
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Post by tennessean on Oct 10, 2021 20:46:05 GMT -6
www.zerohedge.com/markets/catastrophic-property-sales-mean-chinas-worst-case-scenario-now-play"Catastrophic" Property Sales Mean China's Worst Case Scenario Is Now In Play Tyler Durden's Photo by Tyler Durden Sunday, Oct 10, 2021 - 10:11 AM No matter how the Evergrande drama plays out - whether it culminates with an uncontrolled, chaotic default and/or distressed asset sale liquidation, a controlled restructuring where bondholders get some compensation, or with Beijing blinking and bailing out the core pillar of China's housing market - remember that Evergrande is just a symptom of the trends that have whipsawed China's property market in the past year, which has seen significant contraction as a result of Beijing policies seeking to tighten financial conditions as part of Xi's new "common prosperity" drive which among other things, seeks to make housing much more affordable to everyone, not just the richest. As such, any contagion from the ongoing turmoil sweeping China's heavily indebted property sector will impact not the banks, which are all state-owned entities and whose exposure to insolvent developers can easily be patched up by the state, but the property sector itself, which as Goldman recently calculated is worth $62 trillion making it the world's largest asset class, contributes a mind-boggling 29% of Chinese GDP (compared to 6.2% in the US) and represents 62% of household wealth.
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Post by tennessean on Oct 10, 2021 21:11:07 GMT -6
www.zerohedge.com/markets/catastrophic-property-sales-mean-chinas-worst-case-scenario-now-play"Catastrophic" Property Sales Mean China's Worst Case Scenario Is Now In Play Tyler Durden's Photo by Tyler Durden Sunday, Oct 10, 2021 - 10:11 AM No matter how the Evergrande drama plays out - whether it culminates with an uncontrolled, chaotic default and/or distressed asset sale liquidation, a controlled restructuring where bondholders get some compensation, or with Beijing blinking and bailing out the core pillar of China's housing market - remember that Evergrande is just a symptom of the trends that have whipsawed China's property market in the past year, which has seen significant contraction as a result of Beijing policies seeking to tighten financial conditions as part of Xi's new "common prosperity" drive which among other things, seeks to make housing much more affordable to everyone, not just the richest. As such, any contagion from the ongoing turmoil sweeping China's heavily indebted property sector will impact not the banks, which are all state-owned entities and whose exposure to insolvent developers can easily be patched up by the state, but the property sector itself, which as Goldman recently calculated is worth $62 trillion making it the world's largest asset class, contributes a mind-boggling 29% of Chinese GDP (compared to 6.2% in the US) and represents 62% of household wealth. From the article,
Needless to say, once the "stress level" in China's far bigger, $12 trillion onshore bond market approaches levels currently at the offshore, property-dominated market, all bets are off. Yet what makes the situation especially dire is that while Beijing would eagerly step in to bailout every insolvent bank and corporations until a few years ago, the one time when China's economy desperately needs a bailout from the state is when Xi decided to be silent. Authorities have been allowing defaults to rise in recent years in order to curb moral hazard and encourage better pricing of risk in its debt markets. Property firms’ missed payments made up 36% of the record 175 billion yuan in onshore corporate bond defaults this year. Yet if Xi allows the entire $62 trillion Chinese property sector to sink, the outcome will be orders of magnitude more dire than Lehman. “It’s very difficult to see a solution right now,” said Hao Hong, head of research and chief strategist at BoCom International, who agrees that the Evergrande crisis could drag on. China’s Evergrande strategy would be to “let as many people bear the cost as possible,” to lessen the pain for any one individual, Hong said. However, if the broader population loses faith in what is China's biggest asset while the market waits for a resolution - something the latest sales data confirm is already taking place - then the consequences will be catastrophic. So while some observers have compared Evergrande’s woes to the epic collapse of Lehman, the truth is that the coming default is just the trigger event whose downstream effects could pull down the entire Chinese house of cards, something the latest housing data show is already in play. Because at the end of the day, no Ponzi scheme can continue if the participants lose faith in a favorable outcome, and at $62 trillion China's housing sector is not only the world's largest assets, it is also the world's biggest Ponzi scheme. Which is why other experts have said this isn’t a Lehman Brothers moment— it could be far worse, if one views China’s gargantuan real estate sector as rotten to the core. Which it is.
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Post by tennessean on Nov 9, 2021 7:36:04 GMT -6
www.encouragingangels.org/new-blog/2021/10/30/tfrmmc0cynrs7an2gbwxoktw4p1255Dr. Marco Metzler: Evergrande Missed Second Past Due Interest Payment In A Week-Is Bankrupt-Could Drag Down Real Estate Sector/HSBC & World Financial System If one also considers the limited possibilities of international banks to access assets in China (see above), there is much more at stake for HSBC: the default of the entire portfolio of Chinese corporate loans. And that, after all, is worth around $196 billion. "Such immense lending to Chinese companies, without a guaranteed possibility of accessing collateral in China itself in the event of bankruptcy, is irresponsible in my view," says financial expert Metzler. With a return of five percent, HSBC would have to write off around 186 billion dollars in this case. That would correspond to almost the entire equity capital of the bank. And would probably lead immediately to its bankruptcy. This would make HSBC a victim of the Chinese financial virus, which would then spread rapidly throughout the international financial markets. "The Great Reset - the final meltdown of the current global financial system - has long since ceased to be a purely intellectual thought experiment," concludes Dr. Metzler.
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Post by tennessean on Nov 12, 2021 7:30:02 GMT -6
www.thegatewaypundit.com/2021/11/chinas-evergrande-worlds-indebted-corporation-officially-goes-insolvent-today/China’s Evergrande, the World’s Most Indebted Corporation, Officially Goes Insolvent Today By Joe Hoft Published November 10, 2021 at 6:04pm China Evergrande Group today again defaulted on interest payments to international investors. DMSA itself is invested in these bonds and has not received any interest payments until today’s end of the grace period. Now DMSA is preparing bankruptcy proceedings against Evergrande and calls on all bond investors to join it. China Evergrande Group, the second largest real estate developer in China, defaulted on interest payments on two bonds back in September, with the 30-day grace period still ending in October. However, shortly before the end of the grace period, the public was misled by rumors about alleged interest payments. The international media also took the rumors for granted. Only the DMSA – Deutsche Marktscreening Agentur (German Market Screening Agency) already recognized the default at that time and proved in a study that the bankruptcy of Evergrande, the world’s most indebted corporation, could ultimately lead to a “Great Reset”, i.e. the final meltdown of the global financial system. Is this the beginning of bigger troubles for China and the world financial community?
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Post by tennessean on Dec 11, 2021 6:42:54 GMT -6
www.naturalnews.com/2021-12-09-evergrande-defaults-contagion-risk-will-spread-to-crypto-institutional-investors-pension-funds.htmlEvergrande DEFAULTS – Contagion risk will spread to crypto, institutional investors, pension funds and more Thursday, December 09, 2021 by: Mike Adams Tags: bankruptcy, bonds, chaos, Collapse, contagion, crypto, cryptocurrency, debt, debt bomb, Evergrande, finance, Kaisa, ponzi, risk, Tether Bypass censorship by sharing this link: New www.afinalwarning.com/577588.htmlCopy URL 11KViews Image: Evergrande DEFAULTS – Contagion risk will spread to crypto, institutional investors, pension funds and more (Natural News) Evergrande, China’s Ponzi property developer, is now officially in default as Fitch has confirmed the indebted company has missed interest payments on bonds, with over $300 billion in bonds outstanding. Property developer Kaisa is also named in the default decision, and there are nearly a dozen other Chinese property developers that are widely believed to be on the path to default. “This is not just a default of Evergrande, this is a default of China and the banking system,” Dan David told Fox Business this morning (see video below). “Now they’re going to have their Bear Stearns moment,” he added, referring to the 2008 sub prime housing bubble collapse in the USA. We have warned for several weeks that this default had already happened, telling our readers it was only a matter of how long it would take for the ratings agencies to catch up to the reality of the default.
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Post by tennessean on Jan 2, 2022 20:23:24 GMT -6
China cannot make the transition to a consumer based economy from a state investment strategy because the very labor force they need to sell items abroad cannot afford to buy items produced in their own country, for example are the ghost cities that China is building will remain empty because the people are to poor to even occupy them. That is one of the reasons China is on the brink of economic collapse, China's collapse will cause multiple collapse depending on the amount of foreign investment.especially in real estate investment. Interesting video on the state of the Chinese citizens, they are being corralled in reeducation camps then are forced to work in industry. www.naturalnews.com/2021-12-31-china-on-the-brink-of-collapse.htmlOn the brink of economic collapse: How China’s fall will affect the world Friday, December 31, 2021 by: Mary Villareal Tags: Beijing, Bubble, chaos, China, Collapse, communism, debt collapse, economic collapse, economic debt, economic imbalance, Evergrande, Evergrande Group, geopolitics, low-cost labor, outstanding debt, President Xi Jinping, Real Estate, state-owned development
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Post by tennessean on Jan 3, 2022 9:07:27 GMT -6
www.globalresearch.ca/will-the-federal-reserve-crash-global-financial-markets-as-a-means-to-implementing-their-great-reset/5764816Will the Federal Reserve Crash Global Financial Markets As a Means to Implementing Their “Great Reset”? By F. William Engdahl Global Research, December 28, 2021 Region: USA Theme: Global Economy [print] First published on December 16, 2021 It’s looking increasingly likely that the US Federal Reserve and the globalist powers that be will use the dramatic rising of inflation as their excuse to bring down the US financial markets and with it, crash the greatest financial bubble in history. The enormous inflation rise since the malicious political lockdowns and the trillions of dollars in emergency spending by both Trump and Biden, coupled with the continuation of the Fed’s unprecedented near-zero interest rate policies and asset purchases of billions in bonds to keep the bubble inflated a bit longer– have set the stage for an imminent market collapse. Unlike what we are told, it is deliberate and managed. Supply chain disruptions from Asia to normal truck transport across North America are feeding the worst inflation in four decades in the USA. The stage is set for the central banks to bring down the debt-bloated system and prepare their Great Reset of the world financial system. However this is not an issue of inflation as some mysterious or “temporary” process.
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Post by tennessean on Feb 27, 2022 20:36:09 GMT -6
www.zerohedge.com/markets/pozsar-warns-another-lehman-weekend-russia-sanctions-may-trigger-central-bank-liquidityPozsar Warns Of Another "Lehman Weekend" As Russia Sanctions May Trigger Central Bank Liquidity Flood Tyler Durden's Photo by Tyler Durden Sunday, Feb 27, 2022 - 03:20 PM In a remarkable show of force and unity, western powers cast aside all their previous concerns about Russian energy export dominance, and uniliaterally announced the nuclear option of imposing sanctions on the Russian central bank coupled with targeted exclusions from SWIFT of key Russian banks. *EU APPROVES BANNING ALL TRANSACTIONS WITH RUSSIAN CENTRAL BANK The move has sparked a bank run in Russia, as locals scramble to pull out whatever hard currency they can get their hands on before it runs out, and is certain to trigger chaotic moves in FX and commodities when markets reopen on Monday. Already some Russian banks are offering to exchange rubles for dollars at a rate of 171 rubles per dollar on Sunday, compared to the official closing price of 83 on Friday before the European/US announcement about targeting the Russian central bank. In other words we are looking at a 50%+ devaluation of the Ruble. Additionally, widespread announcements of divestments in Russian equities by the likes of BP pls and the Norwegian sovereign wealth fund mean that the Russian market will be a bloodbath on Monday.
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Post by tennessean on Mar 2, 2022 6:50:01 GMT -6
allnewspipeline.com/Get_Cash_Out_of_The_Bank_NOW.phpFebruary 27, 2022 Get Cash Out of The Bank NOW! World Leaders Detonating 'Financial Nuclear Bomb' - In 2021 Russians Warned Removal From SWIFT Banking System Would Be 'Financial Armageddon' By Susan Duclos - All News PipeLine With the news that the West has unleashed more penalties against Russia by severing some of Russia's banks from a financial system called Society for Worldwide Interbank Financial Telecommunications (SWIFT), which links thousands of banks operating in about 200 countries and territories around the world, warnings from Russia in April 2021, become much more ominous. On April 22, 2021, The Moscow Times was used as a shot across the bow to warn the West what would happen if they attempted to "disconnect" Russia from SWIFT, with the sub-header of the Moscow Times article dubbing it a potential "financial Armageddon." In a meeting with EU foreign ministers, Ukraine’s top diplomat Dmytro Kuleba said he had called for a tough new package of sanctions, including the expulsion of Russian banks from the Society for Worldwide Interbank Financial Telecommunications (SWIFT) network, which currently links more than 11,000 banks operating in at least 200 countries and territories around the world. The proposal — long popular among those who favor slapping hard-hitting sanctions on Russia — has picked up new supporters since last year’s poisoning of Alexei Navalny. Talk of a possible embargo reached fever pitch in Moscow in the days leading up to U.S. President Joe Biden’s announcement of a new round of sanctions against Russia mid-April, with top Russian officials and banking figures talking up the dangers of being disconnected. [......] The Foreign Ministry said Russia needed to create its own blockchain-based alternative. The head of Russia’s banking association warned SWIFT against disconnecting Russian lenders, saying it would be an act of “self-castration,” while the Director General of the Kremlin-aligned Russian International Affairs Council (RIAC) compared the potential move to detonating a financial “nuclear bomb.”
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Post by tennessean on Mar 3, 2022 6:47:12 GMT -6
tapnewswire.com/2022/03/is-the-ukraine-about-a-financial-collapse/#comment-88095New post on Real Currencies Is The Ukraine About A Financial Collapse? by Anthony Migchels (Left: The traitor Zelensky, who brought Putin’s invasion on the Ukrainians with his insane stance, serving only Washington DC) Either a terrible crash, or humongous bailout is around the corner. Liquidity in the markets is lower than it was in March 2020, when the S&P tanked 30%. The Petrodollar is in its death throes, the SWIFT sanctions of Russia will hurt the Dollar more than the Russian Empire, and it’s looking like the current Ukraine Crisis has been created to sell the coming crash, just as the Lockdown and ‘covid’ served primarily to sell the crash cum bailout and money printing in March 2020. Have a look at this graph, it shows the amount of liquidity (meaning simply the amount of money going around) in the markets. See the two crunches, both in March 2020, and now. It’s actually even worse now. Why is it important? Because in March 2020, while we got locked up, they gave the Bank the biggest bailout ever, and unleashed money printing on a scale we haven’t seen since 2008. Just recently, Blackrock whistleblower Edward Dowd confirmed our analysis, that the Lockdown was intended to preempt resistance against the bailouts.
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