https://news.yahoo.com/nothing-left-live-evergrande-meeting-174442622.html
The situation on the ground contradicts the reassuring headlines in the US. Evergrande is about to topple and start a chain reaction around the world. Blackrock will be significantly affected.
Before I ever read a Q post, I had concluded it was Trump's protectionist trade policy toward China that triggered the bribed/controlled Democrats and MSM to spaz out and desperately try to impeach him. I now see there were other reasons, but the China policy is still a main one. Evergrande is proof.
Now those policies -- along with anemic supply chains and shutting down illegal income streams from human trafficking and other criminal enterprises -- have resulted in cashflow problems for China. Their aggressive hoarding of real estate and loans has left them asset heavy and cash poor. This is what happened to Lehman Brothers in 2008. If you can imagine cash as the oil in an engine, China's engine is dry and the pistons are locking up.
This, I theorize, was one of the purposes behind the ridiculous $3.5 trillion infrastructure bill. You have to think of infrastructure bills and "stimulus" bills these days as Democrat slush funds. The money is never accounted after it changes hands. As Trump called out before he left office, the covid stimulus sent billions overseas to China and Pakistan. It's likely the infrastructure bill was going to give China the cashflow to get their engine unlocked.
Then consider how an authoritarian regime relies on state corporatism for its economy. In this economic model, insolvency of your largest corporations can leave the state with cashflow problems as well. It'll be interesting to see how woke our corporations and sports will be at after that. Also, when a despotic state has little cash, they eventually will have trouble paying their military. When the military eventually does not get paid, they coup your despotic ass.
The Chinese spies in the legislative branch of the US Government appear to push the $3.5 trillon infrastructure bill as a pretext for a bailout of China. Think about the green energy contracts given to bidders using materials "Made in China." Think about the Chinese funding the pensions of public works monopolies like Caltrans in California at the state level. Government contracts whether state or federal spend tax revenue for infrastructure projects reliant on Chinese imports. China needs passage of the infrastructure bill to prevent an economic collapse similar to the one experienced under the first term of Barack Obama.
Very good points. Thanks for posting.
TARP 1 under Bush unfroze credit and prevented a meltdown. TARP 2 under Obama was a slush fund for bribing unions and funding Dem PAC's. "Shovel ready jobs" was the lie Obama used to associate it to infrastructure. It created no construction jobs and was a trillion dollar scam.
I hate thinking about the Obama years. It was a slow but incessant assault against the middle class, and you were racist for calling it out.
I can still hear him saying " this is not who we are" CONSTANTLY badgering Americans about being "better".... Give him more money. Give away your guns. Don't bible thump. Blah blah. He was terrible.
An updoot for this astute observation -- every time I hear Black Jesus utter the words, "this is not who we are," I want to scream at the top of my lungs that he has NO F*CKING IDEA what "we" or this country are about. I'd like to say I'm glad he's "gone," but I don't really think he is. Hope I live long enough to see his traitorous ass in an orange jumpsuit.
Obama would secretly stir up problems, then pretend he was above it all, then condescend to us to a prick. I hate that Marxist scumbag.
Sure, we can bail them out with our Monopoly money. We'll just have them print more for us.