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It’s no secret that China’s economy is collapsing as I speak. China is implementing the strictest COVID lockdown in history, but that’s just the tip of the iceberg. . Housing sales are crashing, the stock market is tumbling, the Chinese yuan is being devalued, social unrest is erupting, and the credit market is falling apart. China’s economic failure isn’t just a typical recession. It’s the biggest property downturn in history and a serious threat to the global economy.
Every economy relies on the consumer to drive economic growth. China’s consumers are in the worst position in history, and I’m not exaggerating when I say that. China’s consumer confidence index is currently the lowest it’s been in the history of the index, which dates all the way back to 1991. The reason why this is extremely concerning is because it creates a terrifying feedback loop. One man’s spending is another man’s income. If consumers are not spending money on goods, then consumers are also not going to receive income. For instance an employee working for Didi spending less money on Alibaba.com will lead to less profits for Alibaba. This causes employees of Alibaba to be laid off or see their salaries be cut. The result of that is less money spent on another company’s products, which only lowers income even more. If you’re a Chinese citizen, this is a frightening situation to be in. The worst part about it is that the government is responsible for the country’s failing economy. China’s zero-COVID policy, which involves trying to keep COVID cases at zero, has crashed the economy into pieces. The Chinese government has a goal of literally reaching zero covid cases. That’s right, zero covid cases. We all know that’s not possible when China has a population size of 1.4 billion people.This is why authoritarian governments can make terrible decisions. When the government has an unreasonable target like zero COVID cases, the government will enact any regulation to help reach that target. In order to do almost anything, citizens are forced to have a negative test within the past 72 hours. We’re talking about riding a train, going shopping, eating at a restaurant – all of this will require a negative COVID test. This would be fine if getting a test was easy, but when you have 16 million people in one city trying to get tested, it’s no surprise that the testing lines are packed. So as a result of COVID testing regulations, people can’t go shopping. They can’t go see their family. Some can’t even go to work. This is already horrifying, but forced lockdowns are even worse. The entire city of Shanghai, which has a population of 26 million people, was forced to lock down for 70 days after a COVID breakout occurred. Some might think that the lockdown has subsided now, but the COVID regulations aren’t over. One single COVID case in the city of Shenzhen forced large portions of the city to undergo mass testing. Imagine neighborhoods of people being forced to test just because one person got COVID. Such a strict protocol is ridiculous and it’s clear that the economic repercussions are going to be unprecedented. Perhaps one of the most serious implications of the COVID lockdowns includes a further downfall in China’s housing market. The Chinese housing market is one of the biggest bubbles in history. It’s so massive that some might wonder how it came to be in the first place. Allocating capital to investments is extremely important for any citizen. Nobody wants to look at their cash rot away to inflation over time. As a result, a typical person might take a look at the stock market, but Chinese stocks are notoriously risky. Companies like Didi, the largest ride hailing company in China, have seen their valuations tank by 75 to 90% just because of the chinese communist party. The entire $1 trillion education sector went to 0 overnight as the government turned the originally private industry into a public one. The Chinese superstar entrepreneur Jack Ma was torn apart after mysteriously disappearing for 3 months. And to make matters even worse, the Chinese government has scared away international investors by keeping the risk of a delisting on the US market. These delisting risks are only continuing to grow as time goes on. So stocks aren’t really an option for Chinese citizens to invest in. But what about other assets? The vast majority of other assets are not even available to invest in. Just take a look at Bitcoin, which experienced a nationwide ban in 2021. The only place for Chinese citizens to invest in is the property market. The problem with this is that there is too much capital looking for too little opportunities to invest in. Because Chinese citizens have nowhere to invest their money, a bubble has formed in the real estate market. Property developers have taken out billions of dollars of debt to quickly expand their real estate portfolios.
If you keep saying the same thing for the next 50 years, you may just strike the jackpot ！
I'm a big China watcher. I am concerned.
I better buy my stove and fridge raider now, before I can’t find them anymore.
i think you are dreaming.
The sooner the better for the world.
don't ever trust what you hear.. china doesn't run its money through federal banking systems….they are the richest country on the globe …plus the most intelligent
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It spreds easier than a cold, mutates faster or just like cold. Do you know anyone who never got a cold ? So why do you think Covid will be different. It is pointless and they know it. It can only be two things:
1) They need to have strict control of the population for a reason We can't understand yet.
2) Or they are in dispair because they know something about this virus that We don't… yet.
I hope it crashes lol
Very good video. Full of information I did not know was happening in China. Thank you
Be thankful for the good times we've had. Thanks to our policymakers it looks like it's about to rain in blood. We talk about the financial factors of this situation, but good flowing money is the lifeblood of the planet and the flow is getting more restricted by the day.
amazing analysis…subbed..God Bless
COPE COPE COPE
USA IS COLLAPSING
Zero Covid cases policy = Zero China and Zero xi.
Hello Mr. Casgain, Many thanks for this information. I know your voice. You must work on developing more natural conversational voice modulation. Get comfortable and relax with the microphone. I didn't know you have done serious study in economics but I think you're putting it to very good use. Please continue your important work! Kind regards, StepheN
How can a free market capitalist economy actually collapse? They recover and bounce back up fast; socialist shitholes like EU, UK, Canada, and most of USA on the other hand…. they won't recover with all the regulations and restrictions they have on the economy
what I can tell is that China has already being bombed to collapse by your big cannon mouth thousand years ago…….LMAO
Better watch out Formosa! A cornered animal will lash out !
Could this lead to revolt? Clearly when most of the population loses everything, and sees no way out, they may call for democracy!
Brah, your video is long late. China has already largely pulled back on the zero COVID policy.
U.S. GDP has shrunk by 1.7% year-on-year. I wonder who is collapsing.
Absolutely since September (9) last year
Seems no different to Europe.
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The mortality rate for covid around the world was around 3%. If you apply that to Chinas population of 1,4 Billion, that would mean over 40 MILLION people would have to die. So it is absolutley necessary for China to follow a strict covid policy. Saving so many lifes overweights a crippled economy.
Companies will just move their factories elsewhere during trumps term in office he applied many things to help us defend ourselves from financial collapse endeavors from China fortunately. And in that turn many companies have either already completely left China or and/or have moved to two other locations or are planning to move to other locations. Minerals precious metals and stuff are probably like the biggest worry
Just like Japan in the 80s… they will inflate their markets to astronomical levels only for them to pop and cause a long term recession. Which will effect the whole entire world economy. This is all because China has a huge ego and wants to become number 1 in the world order.
This is best propaganda ever that's what Daniel Trum called fake news🤣😂
After decades of predicting the fall of China…it is still going stronger than western economies…..
By the way..there ain't social unrest…get your facts correct
Actually on the tech devices China exports like phones and tablets ect. Your slightly wrong. They do export the put together product from China. They do not however manufacture the high end chips nessary to for them to work. China imports those bc of sanctions denying it access to the Dutch machines I believe that build high end chips. China can on mass produce microwaves and some refrigerators basically without those chips being imported. They did throw massive amounts of money to develop thier own equipment but sadly it's not just a money issue. The last report I read stated they needed 300k more whatever the field is called engineers. Before mass production could happen 2035 best estimate
you know they could just declare covid defeated. if they can alleviate poverty in less than a decade, i'm pretty sure Xi Jinping can end covid at any moment if he wanted to.
too bad they just can't blame it on racism
The CCP TOFU Circus is collapsing just like their TOFU constructions. Good people of China may have a chance to a Fresh start without the Clueless CCP confusing leadership 😵