# Anyone Following China's Economy This Week?



## fmdog44 (Sep 23, 2021)

I watched CNBC this week and there is big worries about the Chinese economy. Today one of the guests said to avoid the S&P index for its holdings in international stocks. I don't claim to understand all of his but the rhetoric is alarming. Their banks are in it up to their necks. The consensus is our economy will be OK.

Sept. 23, 2021, 9:14 AM CDT
By Jennifer Jett
HONG KONG — Evergrande Group built a real estate empire on a mountain of debt. Now the Chinese property giant is in trouble — and there are fears it might take the global economy down with it.
The uncertainty fueled a market selloff this week and has raised concerns of a crisis similar to the one set off in 2008 by the collapse of the U.S. investment bank Lehman Brothers. Experts say such comparisons are overblown, not least because the Chinese government exerts a much greater degree of control over even private companies like Evergrande.


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## Murrmurr (Sep 23, 2021)

Yes, I've been following this. Some of it is being sensationalized but for the most-part it's accurate. China's got a big problem and it looks like they're not going to be able to get things under control unless there's a major shift of power in the CCP.


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## Murrmurr (Sep 23, 2021)

In the next few months or so, I'm kind of expecting Xi Jinping to have a sudden "heart attack" or something.


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## AnnieA (Sep 23, 2021)

Murrmurr said:


> Yes, I've been following this. Some of it is being sensationalized but for the most-part it's accurate. China's got a big problem and it looks like they're not going to be able to get things under control unless there's a major shift of power in the CCP.





> In the next few months or so, I'm kind of expecting Xi Jinping to have a sudden "heart attack" or something.



That's interesting.  Shortly after the news from Wuhan broke last year, I read an op ed that predicted the possibility of regime change in China.

Is Political Change Coming to China? Feb 2020 Japan Times


.


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## Murrmurr (Sep 23, 2021)

AnnieA said:


> That's interesting.  Shortly after the news from Wuhan broke last year, I read an op ed that predicted the possibility of regime change in China.
> 
> Is Political Change Coming to China? Feb 2020 Japan Times
> 
> ...


Xi has been cracking down on a slew of enterprises that generate a lot of revenue for the state, but also big chunks of it goes directly into the pockets of some powerful members of the CCP. They aren't at all enthused about these sudden crack-downs. So, there's either going to be a "new" regime or Xi is going to start having new *"thoughts".

*he started publishing these bits of propaganda called Xi Thoughts - a book (like Mao's Little Red Book) but also posters that are popping up everywhere.


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## Packerjohn (Sep 23, 2021)

Canada has a massive debt but no one seems to worry!  They re-elected the same prime minister who has accummulated a debt of 2.2 Trillion dollars.  Canadians seem to love debt.  You can tell by the huge homes they are building, the huge motorhomes they are buying and oh, those lovely pontoon boats.  Just gotta have 'em!  There are probably more adult toys in this country than any other country you can name.  Plenty of motorbikes and ATV running around on the weekend.  The banks are smiling and so are the consumers with the crazy low interest rates.  It's almost like free money; if you ignore the fact that you have to eventually give it back.


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## fmdog44 (Sep 23, 2021)

We are constantly reminded of the atrocity of the Nazi years but someone should look in to the China years under Mao. Perhaps China undr Xi has moved too quickly while keeping their heads in the sand. A regime change could mean nothing or everything.


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## Nathan (Sep 23, 2021)

Packerjohn said:


> Canada has a massive debt but no one seems to worry!  They re-elected the same prime minister who has accummulated a debt of 2.2 Trillion dollars.  Canadians seem to love debt.  You can tell by the huge homes they are building, the huge motorhomes they are buying and oh, those lovely pontoon boats.  Just gotta have 'em!  There are probably more adult toys in this country than any other country you can name.  Plenty of motorbikes and ATV running around on the weekend.  The banks are smiling and so are the consumers with the crazy low interest rates.  It's almost like free money; if you ignore the fact that you have to eventually give it back.


Gee, that all sounds so familiar- kind of like all across the U.S.


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## Bellbird (Sep 23, 2021)

Interestingly enough I watched a Timeline programme about China penalising Australia with very high tariffs etc., because Australia dared to criticise .


> *Australia has scrapped agreements tied to China's Belt and Road initiative, prompting anger from Beijing and adding further strain to tense relations between the countries*


However it all could back fire on China, countries who trade with China are watching how this situation revolves for they to could be in the same situation as Austalia , if they dare "step out of line."


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## Murrmurr (Sep 23, 2021)

Nathan said:


> Gee, that all sounds so familiar- kind of like all across the U.S.


There's a huge difference, though, in that the debts in Canada, the USA, and others, are diverse. China's debt is not nearly as diverse. That's usually not a good thing.


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## MrPants (Sep 24, 2021)

Packerjohn said:


> Canada has a massive debt but no one seems to worry!  They re-elected the same prime minister who has accummulated a debt of 2.2 Trillion dollars.  Canadians seem to love debt.  You can tell by the huge homes they are building, the huge motorhomes they are buying and oh, those lovely pontoon boats.  Just gotta have 'em!  There are probably more adult toys in this country than any other country you can name.  Plenty of motorbikes and ATV running around on the weekend.  The banks are smiling and so are the consumers with the crazy low interest rates.  It's almost like free money; if you ignore the fact that you have to eventually give it back.


Didn't you hear what Trudy said a few years ago? 
"The deficit will take care of itself." So apparently, there's no cause for concern


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## Alligatorob (Sep 24, 2021)

AnnieA said:


> That's interesting. Shortly after the news from Wuhan broke last year, I read an op ed that predicted the possibility of regime change in China.
> 
> Is Political Change Coming to China? Feb 2020 Japan Times


Read that one, it is interesting.  I've been predicting regime change in China for 30+ years, just wishful thinking so far.


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## Packerjohn (Sep 25, 2021)

MrPants said:


> Didn't you hear what Trudy said a few years ago?
> "The deficit will take care of itself." So apparently, there's no cause for concern


That statement makes absolutely no sense.  How will it take care of itself?  When you borrow money, there is the principle and the interest to pay back.  When you are paying back the interest, the banks are smiling but the tax payers are losing out because they are paying interest where they could be building schools, hospitals, hiring doctors and nurses and repairing highways and streets.  They say that Mr. Trudeau was born with a silver spoon in his mouth.  They say that he never worked for a living but lived off the trust fund that his rich daddy (Pierrre) left him.  Yet, he is running the country.  Good Lord, help us all!


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## HarryHawk (Sep 29, 2021)

MrPants said:


> Didn't you hear what Trudy said a few years ago?
> "The deficit will take care of itself." So apparently, there's no cause for concern


That's sort of like the current philosophy in the U.S., we will inflate our way out of inflation.


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