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China’s ENTIRE Economy Will Collapse In 34 Days

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Social unrest has erupted in China after almost $6 billion worth of deposits froze up. Thousands of police were deployed to shut down the protest. Following the protest, hundreds of thousands of Chinese homebuyers refused to pay up to $300 billion worth of mortgages. Mortgage payments have reportedly stopped on 301 projects in 91 cities. China is experiencing a repeat of the 2008 recession but on a whole new level. An entire social revolt is growing as the CCP desperately censor the growing uneasiness. Internal government meetings have revealed substantial stress within the CCP and the signs are showing that it’s only going to get worse. China’s social unrest has revealed a multitude of flaws within the country, and the implications will ultimately affect the rest of the world.

Over 400,000 Chinese citizens witnessed their bank deposits freeze recently. When depositors went to the ATM to withdraw their money, their withdrawals were simply declined. Panic ensued after people couldn’t even withdraw their own money. The bank freeze was a result of a massive fraudulent scheme that played out for over a decade. Protests about the bank freeze have gone viral on Chinese social platforms despite repeated attempts from the CCP to censor them. While the bank freeze only occurred within five different banks, hundreds of other Chinese banks are at risk according to the Chinese government. After the bank protests went viral, the social unrest spread to almost every part of the country. A recent internal government property meeting leaked several major concerns. 300 million square footage of property construction has been halted. Local governments can no longer withstand the pain. A 200 to 300 billion yuan property fund has been rumored to not be enough. Property sales are down 20%. Construction starts are down 30%. Perhaps the worst of them all is China’s recent mortgage revolt. Because Chinese homebuyers are not paying their mortgages, financial regulators have created a proposal to allow citizens to pause their mortgage payments. The amount of unpaid mortgage payments equals to 2 trillion yuan or $300 billion. The problem with both the mortgage boycott and the bank freeze is that a domino effect is about to occur. Five banks went bankrupt, which will spread into 20 banks, then 100, and eventually, the entire banking system. This is because like almost every country’s financial infrastructure, the Chinese banking system relies on fractional reserves. When someone deposits $1,000 in the bank, the bank does not hold onto that $1,000. The bank will instead keep $100 as reserves and loan out $900 so that they can receive income through interest. The lender of that $900 will then spend $900 on products and services. Because one man’s spending is another man’s income, someone else will receive that $900 as income and deposit it into the bank. The bank will now loan out $810 and keep $90 in reserves. The lender of that $810 will then spend $810. Someone will receive $810 as income and deposit it into the bank. This will cause the bank to loan out $729 and keep $81 in reserves. This cycle will keep going on over and over again, causing the bank to be leveraged by up to 10 times. This is called the monetary multiplier effect, because the lending is multiplied over and over again. In the example that we looked at, the money supply started at $1,000 and eventually increased to $10,000. $9,000 was created out of thin air purely from the multiplier effect. When citizens all try to withdraw their money at once, they will quickly realize that the banks don’t actually have the money they deposited. This is because the banks simply created money out of thin air. Economists worldwide know that China’s recent social unrest is a signal of a complete disintegration of the Chinese economy. The mortgage boycott did not come out of nowhere. It took years of mismanagement and greed to build up all of the frustration that came in the form of a boycott. Because housing prices kept going up year after year, Chinese citizens were eager to purchase any property on the market. Similar to the build up of the US’s 2008 recession, citizens could not even imagine that housing prices would ever crash. As a result of increasing housing prices, people would save up for years just to get their hands on real estate. An estimated 70-80% of Chinese household assets are tied to real estate. Imagine saving up for decades just to finally purchase a single property. This type of behavior was incentivized by Chinese culture, where newer generations would prioritize purchasing a home. Such a huge buying frenzy fueled up the booming property market that continued on for decades.

Written by Casgains Academy

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  1. Another fxxxking BS video, CCP still has everything under control, not to mention CCP has sucked up most of world’s money thanks to the greed of Western companies and countries. If China economy doesn’t explode in a month, you should close this channel

  2. Chinas got a “Ghost City” problem. Just as real estate caused the US recession in the early 2000’s , China is facing a similar issue and a government that is dishonest, fraudulent, and irresponsible.

  3. The collapse started when developers couldn’t complete the pre-sold homes. Myself, I’ve been following the Chinese property market since seeing pictures of abandoned shopping malls in 2005, and have yet to see any particularly good news. Chinese bots said how ghost towns were revived, but didn’t tell us of how local governments were handing out money to companies for locating near them.

  4. Starve the beast. The CCP is an evil regime that is a group of bumbling, corrupt and incompetent government. The Chinese people need a democratic government like Taiwan. The CCP is is using profits commit Genocide human rights abuses and building a military to dominate the world and spread their poisonous propaganda and toxic communism. The only way to stop this threat is to destroy the CCP by boycotting Chinese cheap junk products. All Foreign companies need to seek out democratic countries and leave China. Stop investment in China.

  5. History lesson. Things are starting to make sense now. China is going belly up with civil unrest. What does a government do when threatened with civil unrest? It creates a war with somebody to unite nationalism and create someone to blame. This explains why China is going crazy over Taiwan. China needs a war real quick. It's evil and quite sinister when you think about it, because these corrupt rulers are willing to kill innocent people in order to save their own skins. Putin did the same.

  6. The whole video is clickbait, Youtube is not even available in Mainland China – so why would they shut down content, while there are issues with the financial system and the mortgage sector, the country is not going to collapse

  7. It's hard to defend China when all of this is going on and the people are literally getting in trouble for protest. I know there is still some good but the bad is just overshadowing everything.

  8. Wow…. Really a Government can not be trusted!! How is that any different from other governments? Were people in America allowed to openly go against President Trumps rules? Doctors, Academics amazingly lost their jobs for speaking up. Allegedly America is a free democracy….

  9. I feel this is an exaggeration. There will be NPAs in the billions, but I suspect the CCP has enough hedges in place to safeguard against a scenario like this. The current conditions will lead to a recession but claiming that the ENTIRE economy will collapse in 34 days is a stretch. I hope I am not proven wrong as the consequences will be disastrous for the entire world.

  10. In my opinion, there is nothing as monetary multiplayer effect in the banking system. Can someone explain about its existence??

    A person who takes loan from a bank will not deposit the same money in the bank. This is what is confusing me.

  11. What a great news!! This channel predicts the Chinese economy to collapse in 34 days. What does economy collapse means?
    Any way, I come back to this channel in 68 days. To check whether I have to send some money to my relatives in China as my parents did in the 70s.
    Do remind me in case I forget.
    Bravo for time being.

  12. Don’t show and compare Xi jinping to hitler and Mussolini wtf?!! He has rent amazing as a communist leader compared I every othe communist leader. I do not support him but damn bro don’t compare him to hitler wtf!!!! That just angers one and the country showing a false view to China and our view of China.

  13. One Child Policy = Government tries to play God

    Also, this is my 10th tried to post it because youtube keeps trying to remove my comment here. Youtube allows troll but not truth.🤪

  14. Your analyzes of how banks lend out money is missleading to say the least and it is flat out wrong. Banks do not lend other peoples money out. They use the money you deposit in your bank to get a leveraged lone from the central bank. The money that is lended out from the bank is money that does not exist. They create that money out of thin air when they are lending it out. Your money just sits there. In fact it is a liability to them.

  15. You have fractional reserve banking wrong. If a bank receives 1,000 dollars they don’t keep 100 and loan out 900. They actually keep the whole 1,000 they received and loan out an additional 9,000, essentially creating 9,000 dollars of thin air.

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