Gold Rush Frenzy: The Heightening Economic Desperation in China | TDTV

A wild phenomenon is sweeping China. A nationwide movement of people buying gold as a means of self-preservation. With real estate prices plummeting, the stock market hitting rock bottom, citizens are flocking to gold stores with the belief that gold is the only safe haven left. In China, an unprecedented frenzy is unfolding as people rush to buy gold. When individuals in China have money, what do they do? They hurry to invest in gold. Why gold? Many used to invest in real estate. But now, with property values collapsing even in major cities like Beijing and Shanghai, the so-called dream houses are being sold at half the price, and negotiations often start with a million yuan reduction. This is a terrifying scenario. Since money can no longer be parked in real estate, some might consider the stock market. But with the Shanghai Stock Exchange now dipping below 3,000 points, the Chinese stock market is in a free fall. Even Hu Xijin admits he's been harvested like a leek. Now that the stock market is not an option and real estate is out of the picture, what about putting money in the bank? The scary part is that in many places, including Hainan and Shandong, after depositing money in the bank, you might find it difficult to withdraw. So, what we are witnessing now is an undeniable reality in China, where people are frenziedly buying gold. Yes, every Chinese citizen, regardless of age or gender, is rushing to the silver store. Why are they buying gold? Because truth be told, after making money, they have no safe place to keep it. In the past, people used to deposit money in banks. But now, in many places, including Hainan and Shandong, when you deposit money, you might find it difficult to withdraw it. Therefore, the current scene in China is people truly going crazy to buy gold. After Moody's downgrades the credit rating of the Chinese government, what are the consequences? The adjustment of China's government credit rating by rating agencies will ultimately be reflected in the renminbi exchange rate. As the inflation in the United States slows down, the U.S. dollar index falls and the People's Bank of China opportunistically takes advantage of the drop in the U.S. dollar index, aggressively pulling up the renminbi exchange rate. Despite the painstaking efforts of the People's Bank of China to raise the renminbi exchange rate to around 7.1, Moody's adjustment is like a sudden blow, subjecting the renminbi exchange rate to renewed pressure. Essentially, in the global economy, there are many indices to gauge economic conditions, and credit rating is one of them. It will ultimately reflect the economic situation of the economy. Therefore, everyone needs to be especially in the realm of renminbi exchange rates. Second-hand housing market collapses completely. Shanghai homeowners urgently selling houses offering rewards of an Audi and an iPhone. Second-hand housing market collapses completely. Shanghai homeowners urgently selling houses offering rewards of an Audi and an iPhone. Shanghai homeowners are resorting to new tactics when selling houses, and one cannot help but wonder, is selling houses this challenging now? A commitment letter from a self-proclaimed owner in Baoshan District's Sanhua Modern City is, in fact, a bounty for real estate agents. The gist is that anyone who can help sell his house before December 30th will be rewarded with a 2019 Audi A4 under the owner's name. Additionally, for every group of clients brought in to view the house, a cash reward of 200 yuan will be given, and after the deal is completed, 15 Apple iPhones will be given as well. It seems that every means is being employed to sell the house. Do you think the houses in this group must be more expensive than others? He immediately adds that regardless of how much other similar properties have been reduced through online price comparisons, he will reduce another 50,000. How about that? Is it sincere enough? Moreover, the additional commission is quite lucrative, with a contractual payment of 2%. When added to the commission paid by the client, it is indeed a substantial amount. Through this post, it is evident that the owner is very sincere, but selling the house is difficult. Another strategy is employed by homeowners in Erkun, Tonghang, Baoshan, who offer cash rewards ranging from 1 to 3,000 yuan or directly reward several electric cars based on the transaction points. In these situations, these rewards send a consistent signal. The second-hand housing market in Shanghai is still rapidly cooling down, and homeowners are going all out to sell their properties. The housing prices in Shanghai have already dropped to an unbearable level. The community where I currently reside has already experienced a 30% drop. Many people who bought houses in recent years are on the verge of losing their down payments. Not only is it difficult to sell houses in Shanghai now, but renting is also challenging. We all know that many people left last year due to layoffs and an increase in unemployment. This undoubtedly has an impact on rental housing, with a significant decrease in rental clients in many areas, some even experiencing a 50% reduction. The areas most affected are the lower-priced houses in the outer ring and high-end rentals, and the worst hit is the rental business involving foreign clients. In Shanghai, a mysterious landlord is selling 93 properties in one go. It's worth noting that this is happening in the extremely valuable Lujiazui area. Selling each house at an 80% discount means losing millions of yuan. Why would they engage in such a loss-making deal? What's the hidden story behind this? Well, it turns out that the mysterious landlord is none other than the World Trade Group. Selling at an 80% discount directly attracted 30,000 people rushing to buy, and no one could stop them. Buyers at the discounted rate, however, have a condition. They must pay the full amount up front. The truth is that these 93 properties have long been mortgaged to financial institutions by the World Trade Group. Currently, they cannot be bought or sold unless the mortgage is lifted, meaning the World Trade Group pays off the 9.5 billion yuan loan, allowing for normal online signings and property transfers. However, this loan is due to expire in a month. The World Trade Group has not paid it off early. On the day of purchase, with a large number of participants, many people paid a deposit of 500,000 yuan on the spot. When it came time to sign the contract, unexpectedly, the agent brought a letter of acknowledgement. The general content was that the houses currently have a mortgage. If there is a risk of being unable to process the loan and property transfer in the future, customers need to bear the responsibility themselves. This letter of acknowledgement is essentially a pit that the developer has dug for the buyers, waiting for them to jump in. Consumer downgrading, emptying of the CBD in Shenyang, rapid return to poverty, the fashion industry in Guangzhou heating, towards extinction, overcapacity, the industrial and commercial sectors facing, a lack of orders, a sluggish market, employment difficulties, and even customers at the vegetable markets reluctant to buy. Farmers raising cattle complain can't hold on anymore, really can't hold on, give the common people a way out, cabbages and green onions are rotting in the fields with no buyers, and all the essential items around the common people, such as seeds, fertilizers, pesticides, and fodder, are soaring in price. It has long fallen below the cost line, leaving the common people confused. Has the money really experienced deflation or inflation? Is the money genuine or fake? Those who cultivate the land cannot afford to buy seeds, and those who raise cattle cannot afford to eat beef. Does this sound right? My family and I have been working outside for more than 10 years, saving up a bit of money, and invested it all in buying cattle, thinking of leading a stable rural life, without the need to work in two different places. It's good for the family to be together, but I never expected that the day would come when I would lose money doing manual labor. Mainland China's lamb prices have also been declining recently, with some areas experiencing prices as low as 50% of the peak period. Some citizens have expressed that people don't have money in their hands and can't afford to consume. A netizen named Liu Daxian commented, Seafood. Meat. Basically, everything is losing value. Consumption is really tough. Some people indeed find it hard to earn money, and those who manage to earn some are saving up for future uncertainties. According to monitoring by the Chinese Ministry of Agriculture and Rural Affairs of 500 wholesale markets in the mainland, as of the second week of November, November 6-10, the price of pork was 15.18 yuan per kilogram. This represents a month-on-month decrease of 0.73 yuan per kilogram, a decline of 4.5% compared to the previous month, and a 42.1% decrease compared to the same period last year. Three months, 400,000 new additions. Ride-hailing drivers in China turning inward amid economic downturn. According to information from the Chinese Ministry of Transport, from the end of April to the end of July 2023, approximately 400,000 people signed up to become ride-hailing drivers. Analyst Wang Ke from Analysis stated that due to the impact of the pandemic over the past three years, many companies and small businesses have gone bankrupt or closed down. Consequently, a significant amount of idle labor has entered the market. The employment threshold for ride-hailing drivers is relatively low, making it a popular choice for many. Money is also flowing. China increases pressure on foreign companies, triggering a flight from China. In the past five days, foreign capital has withdrawn more than 97 billion yuan. Shanghai, China, is experiencing a sharp drop in rental prices, and a man who made a video revealing the reasons has been summoned for questioning. Many foreigners have left, leading to a drastic decline in rental prices on Fuxing Road in Shanghai. Do you know why? Previously, multinational companies from the Fortune Global 500 used to foot the bill for their employees' housing, showcasing their financial strength. However, they have now departed, resulting in a significant decrease in demand for rental properties and, consequently, a sharp decline in rental prices. Prominent Chinese economist Wu Jinglian has stated that the socio-economic contradictions in China have nearly reached a critical point. He mentioned, I have spoken multiple times at the end of the last century that in this dual system of a semi-command economy and a semi-market economy, Chinese society has always faced the question of where to go. There are two possible grim futures in front of us. One is to move along the path of reform to improve the market economy, limit administrative power, and move toward the rule of law in the market economy. The other is to follow the path of strengthening government functions in national capitalism, heading towards the dead end of aristocratic capitalism.