Category: China

Economics Pt. 2: China’s Coming Economic Depression 3/20/19

China is looking like it will be the next part of the globe affected by a housing bubble as well as a few other issues that they are trying to hide from the world when it comes to their economy.

Firstly, China’s housing bubble has been growing, as housing development, led by the municipalities leadership in the areas of the continued development, continue to grow even though the building plans are usually based on population and economic data provided by local authorities who have been shown to over-inflate their numbers to increase funding [1].

This, along with the growing real estate bubble due to the lack of Chinese purchasing the new housing being developed, will inevitably destroy the Chinese economy, as Housing is one of the main revenue streams for the Chinese GDP:

25% of the country’s GDP comes from construction, and 80% of the nation’s wealth is in domestic property holdings. That’s $65T, nearly double the size of the economies of every G7 nation combined.

The market has been kept afloat through China’s massive “shadow banking” system, itself such a systemic risk that the Chinese government has been forced to crack down on it. Now, China’s massive, blue-chip property developers have had their debt downrated to CCC and are struggling to issue new bonds — Moody’s rates the debt of 51 out of 61 Chinese property companies as “junk.”

China has 65 million vacant residences, but prices remain stubbornly high, even in “tier-two” cities like Jinan, where a 1000sqft apartment costs RMB2M, while a worker may only earn RMB6,000/month [2].

This data, along with evidence that shows that Chinese Companies are currently attempting to save at higher rates due to the slowing of the economy at levels unseen for over 30 years [3], meaning less money being pumped into the Chinese Economy, and explains the reason why China has been hiding it’s recent Economic Data [4].

This hidden data helps in hiding China’s shortfalls, as well as is an attempt to gain more economic power across the globe by positioning itself as a major economy. While China has been putting out false GDP numbers, their debt has been racking up, building to Credit Bubble proportions, and will likely be another means of destruction to the countries economy [5].

Sources

Source 1: https://www.scmp.com/economy/china-economy/article/3002219/almost-one-third-chinese-cities-are-shrinking-city-planners

Source 2: https://boingboing.net/2019/02/16/systemic-risk-2.html

Source 3: https://www.reuters.com/article/us-asia-companies-outlook/asia-firms-spend-less-and-save-more-as-china-economy-slows-idUSKCN1R008P

Source 4: https://thediplomat.com/2019/03/in-search-of-real-data-on-chinas-economy/

Source 5: https://www.investors.com/politics/editorials/new-study-shines-light-literally-on-chinas-and-russias-fake-gdp-data/

China’s Concentration Camps 2/21/2019

Most people don’t even know about China’s Muslim Concentration Camps.
China, one of the most terrifying countries to live in, is is cementing it’s status as a literal Orwellian Communist Regime.

The authorities called it a free health check. Tahir Imin had his doubts.
They drew blood from the 38-year-old Muslim, scanned his face, recorded his voice and took his fingerprints. They didn’t bother to check his heart or kidneys, and they rebuffed his request to see the results.
“They said, ‘You don’t have the right to ask about this,’” Mr. Imin said. “‘If you want to ask more,’ they said, ‘you can go to the police.’”

Mr. Imin was one of millions of people caught up in a vast Chinese campaign of surveillance and oppression. To give it teeth, the Chinese authorities are collecting DNA — and they got unlikely corporate and academic help from the United States to do it.

China wants to make the country’s Uighurs, a predominantly Muslim ethnic group, more subservient to the Communist Party. It has detained up to a million people in what China calls “re-education” camps, drawing condemnation from human rights groups and a threat of sanctions from the Trump administration.

Collecting genetic material is a key part of China’s campaign, according to human rights groups and Uighur activists. They say a comprehensive DNA database could be used to chase down any Uighurs who resist conforming to the campaign.

Police forces in the United States and elsewhere use genetic material from family members to find suspects and solve crimes. Chinese officials, who are building a broad nationwide database of DNA samples, have cited the crime-fighting benefits of China’s own genetic studies.

To bolster their DNA capabilities, scientists affiliated with China’s police used equipment made by Thermo Fisher, a Massachusetts company. For comparison with Uighur DNA, they also relied on genetic material from people around the world that was provided by Kenneth Kidd, a prominent Yale University geneticist.

On Wednesday, Thermo Fisher said it would no longer sell its equipment in Xinjiang, the part of China where the campaign to track Uighurs is mostly taking place. The company said separately in an earlier statement to The New York Times that it was working with American officials to figure out how its technology was being used.

Source