by Simon 28 Replies latest social current
China's economy is wobbling as one of its largest companies, Evergrande, is teetering on bankruptcy.
There's a good chance it's collapse will have a knock-on effect on other markets.
So more to thank them for than just the Covid virus.
No one should have any dealing with China.
DOW and S&P500 are both down about
2.8% so far today.
It is trump's fault
Got a text: you ready for the fall? I thought he meant Autumn
Movie Stars like John Cena Sucks the " 🌠" of China because they give him a market for his movies
DOW and S&P500 are both down about 2.8% so far today.
Perhaps this has a little to do with it?
https://www.theblaze.com/news/biden-admin-democrats-debt-limit-increase?utm_source=theblaze-dailyPM&utm_medium=email&utm_campaign=Daily-Newsletter__PM%202021-09-08&utm_term=ACTIVE%20LIST%20-%20TheBlaze%20Daily%20PM
Yup! its a serious situation.
Some estimates put EverGrande's debts at US$ 300 million, less than half the Lehman Bros debts in the 2008 financial crisis.
And, is this problem (as below) made even more serious by this - Quote:
In a letter to top lawmakers Wednesday, Treasury Secretary Janet Yellen characterized America's financial situation as teetering on the edge of catastrophe, noting that without intervention the U.S. government would run out of cash by next month.
"Based on our best and most recent information, the most likely outcome is that cash and extraordinary measures will be exhausted during the month of October," the secretary said.
https://www.theblaze.com/news/biden-admin-democrats-debt-limit-increase?utm_source=theblaze-dailyPM
Reuters gives a good update on the problem:
and also the German DW News:
Here's an article in Australia.
Seems the debt estimate is about US$300 Billion.
https://www.abc.net.au/news/2021-09-21/china-property-bust-evergrande/100472190
jtg
Edit,,, Liabilities of US$300 Billion, is the US$400 Million the interest debt they cannot repay ?!
If I understand it correctly.
The report I saw suggests they are already unable to pay debts to contractors, and have been trading on empty for some time, issuing IOUs instead of payments. It's now become obvious and untennable.
The knock-on effect is the real damage because all the people they don't pay then can't themselves pay for things, and so more companies will go bust. It will be large companies and small.
The idea that the US or China can just print more money shows how utterly clueless these people are. You can't. History has shown over and over that you can't inflate money like this without consequence.
The reason they do it is it steals from savers and gives to debtors, by devaluing their debt. And there are no bigger debtors than the government, which is why Fiat money always eventually implodes and goes to zero.
If China sneezes the whole world catches the flue.
