China’s Next FINANCIAL TIME BOMB is About to EXPLODE…

Country Garden, the innocent sounding name of the company that up until recently was China's largest real estate developer. And after the crisis with Evergrande one year ago, Country Garden is China's latest real estate company to face collapse. Yet Country Garden has four times the number of projects that Evergrande had, so the stakes could be way higher. The company says they will report a loss of $7.6 billion for the first half of 2023. They recently missed a coupon payment to bondholders on August 7th, and they now have 30 days or they'll officially be in default. They're also now considering to extend the term of some of their soon to mature bonds to try and ease their woes. But despite that, Moody's still lowered the company's credit rating three levels down to B1. The writing should have all been on the wall back in December when Yang Huiyan, China's richest woman and the largest shareholder in Country Garden, sold $660 million worth of her shares. That took her ownership in the company from 43% down to 36% and the stock fell 16% the next day. So why is Country Garden in trouble? Well unfortunately it's not limited to just this one company itself, but to the trajectory of China's entire economy and real estate market. Check out what UCLA economist William Yu said in a recent interview with NCD Television. President Biden also made comments about China's economy at a fundraiser in Utah a few days ago. President Biden is calling China a quote, ticking time bomb. During a fundraiser in Utah, he said yesterday while also saying that he wants to have a quote, rational relationship with Xi Jinping. William Yu thinks that that ticking time bomb has already started to detonate. They have no way to service their massive debt because demand for new homes is not there anymore and prices are trending downwards. China is actually now reporting deflation across the economy, the opposite problem that the Federal Reserve is dealing with. Their consumer price index was at minus 0.3% year over year for July and their producer price index was down 4.4% in the most recent figures, the 10th decline in a row. Yet the Chinese Communist regime's Bureau of National Statistics website still says And that's all thanks to comrade Xi Jinping. Yeah, welcome to China. So why is this happening? Well, there are a few factors. One is that the severe COVID lockdowns over the past few years have no doubt destroyed a lot of China's economy and small businesses. For example, the small leather workshop that I used to buy wallets from in China for my wallet selling business shut down during COVID. But also the Chinese regime most probably lied about the number of people in their country who actually died during the pandemic. The US has reported over 1 million deaths from COVID according to the WHO. Whereas China, the country where COVID originated, stopped counting at a few thousand deaths back in 2020. They then claimed that nothing happened all this time. And then it finally seems that they reported some deaths to the WHO in January 2023, totaling around 120,000. If we look at the COVID deaths from the US and China side by side, it's clear that something isn't right here. It's just a hole where everything was fine in China while the US was experiencing the height of the pandemic. Then suddenly China went crazy with lockdowns, apparently over nothing. And the lockdowns were so severe that people were locked in their homes with no food, having to resort to fishing from a koi pond in their apartment complex with a drone just so that they would have food to eat. Now, the Chinese regime did then obviously admit to some deaths occurring, but I think this was probably going on the whole time, perhaps at an even more severe level. So I'm guessing their death toll actually measured in the millions or even the tens of millions or more. And if you have less people, they'll buy less products, less cars, less homes, the theory of supply and demand. And it's also going to be really hard to turn the economy around after that because you can't just start supply back up again if demand isn't there. Now that's just a theory of mine. And if you don't share my belief that the actual COVID death numbers were higher, there are still plenty of other things that could cause chaos in China's economy. Unemployment amongst young people in China is very high. So high the Chinese authorities have stopped releasing the figures on it. Sounds kind of similar to the COVID figures. Too high? Just stop reporting them. Exports to the US are also dropping. Many businesses were destroyed and shut down during COVID. And the US has recently limited some types of investment in China. Many factors have contributed to a decrease in economic activity and deflation in China. And thus there is less demand for homes and the homes that are being bought are selling at lower prices. And this has all brought those highly leveraged real estate companies to their knees. Country Garden was the number one real estate company in China until last year, and they have now dropped down to number six. They now have a 30 day grace period to pay investors the interest payments they owe them or they will officially be in default. And it could potentially trigger a downward spiral four times the size of the Evergrande collapse in 2022. So what do you think about this, guys? Please leave your comments below. And if you want some good news, why not pick up up to 12 free stocks for setting up a new account and depositing any amount of money with the brokerage app Webull with my link below. The absolute minimum value for this is $34. But if you get lucky, it could be worth way more. We're going to keep following this story. So please subscribe if you're new. We'll see you in the next video. Bye bye.