Afraid to invest in the stock market, the Chinese people have invested their life savings in the housing market. The housing market holds aprox 62% of the life savings of the Chinese people. Property development has been a huge factor in China’s economic growth. It accounts for 28% of GDP. Its all about to change.
New property sales in China dropped by 36% in September on average, as much as 45% in Shanghai.
Evergrande has until Oct 23rd to make its bond payments or they will default. These payments are to the bond holders who have invested in buying Evergrande bonds. The USA is holding $300 billion of these bonds which could spell trouble here.
If they default, Evergrande will have to liquidate properties at rock bottom prices.(90 million vacant apartments) This will destroy housing prices and crush the housing market along with the Chinese peoples life savings.
It seems Evergrande had to much money invested in assets that were not selling. Their net income fell, investors got scared and stopped investing and short sellers swooped in when they saw the fall of Evergrande coming a few months ago.
Without any liquidity from Evergrande, other heavily leveraged developers will also soon fall. We are talking about a $62 trillion housing sector that the Chinese people have a large chunk of their life savings invested in.
Remember the video where we saw China imploding high rise apartment building that were half built. No money to finish them and they stand to destroy the housing values if they go on the market at dirt cheap prices.
Evergrande has literally built a house of cards using the Chinese peoples life savings and money from bond purchasers here in the USA. I keep reading the bond market here may implode. If you have money in bonds, maybe talk to your broker
This could start an uprising in China, an overthrow of the current political class. I guess Xi could bail out Evergrande if he wanted to but throwing good money after bad is not the best idea. Bursting the bubble now is better than kicking the can down the road and the damage would be greater.
I don't know what the political implications for Xi or the CCP would be if the people started to revolt after learning they invested in a giant Ponzi scheme. What Xi has going for him is a few years ago he instituted new regulations that would prevent a future Evergrande scenario but at the same time these new regulations started the collapse going on now. It almost seems that Xi did this intentionally and my question is "Did he do it at President Trump's request"? Lots of different scenarios intersecting at the same time. This could get interesting.
Here is a good video explaining what is about to happen.
I get that, but it should feel like true ownership. Assets cost money. Citizenship has a price.
Houses have to be maintained.
Piles of cash have to be defended.
Health deteriorates.
You can’t have your cake and eat it too.
The road to your land has to be repaved.
A car that doesn’t take gas (and doesn’t need a charge) is too good to be true.
If you’re not the one paying taxes, then you’re not the one owns the land.
Renters don’t pay taxes.
Historically renters couldn’t vote.
You had to own land.
Because only the people who own the land pay the taxes.
Only the people who pay the taxes are citizens.
Unfortunately that’s changed. Now we have dumb, unemployed, homeless felons voting on our laws. Despite the fact that its not their money they’re spending.
I mostly agree with what you've stated but this:
It is true that renters don't write the check that pays the taxes but the money that person that rents the property to them comes from the renters - ultimately, the renters DO pay the taxes because they're income is the source from which the taxes are paid. Think of it this way: Corporations don't pay taxes, they act as the tax collector by including the cost of the tax incurred into the product they sell - the product in this case happens to be the property being rented.
To elaborate, it’s not just the government that can take your land when you owe them.
If you owe anyone money, then they can sue you. If you don’t pay the judgment, then they can have the sheriff seize your bank accounts, cars, land, etc. and sell them, keep the money you owed them (plus costs) and give you wants left. It’s not unique to owing the government.
Of course, many states provide protection for your homestead, and one car, or something like that, but if you have a business or second property…
That's if you borrow money. Then, you pay it back.
But you didn't borrow any money from the government. You just pay. Forever.
You are trying to justify paying rent on "your" property. You are twisting your mind into a pretzel to justify it, but you can't justify it.
That's why you are using ridiculous analogies that are not real analogies.
$10,000? $25,000? Insignificant and meaningless.
Correct which the premise of being a Sovereign Citizen.
It’s telling USSA INC “Fuck Off” and saying you will never ever use a US Gov service like social security etc.
For my generation this makes sense. Instead of a W-2 you file a W-8 and instead of a US Citizen K am a Citizen of my State. It’s more common than you think.
It also means my property has “Homestead” status where they can claim I owe whatever but they can’t confiscate it.
I'm looking into this right now. It has it's pros and cons, like anything else. Have you done this? If so, how's it going?
My dad did this and several people I know. Personally I RENT from those w Sovereign Status as I get benefits I like as in no lease and I can barter rent etc.
My dad though is mostly leaning on the homestead. I know sovereign folks that are full in. Their compromise is pretty stiff. IE they can’t build credit but didn’t believe in it anyway - so they buy everything outright. Bought cars when the pandemic hit as well as a house. That’s probably the most intense pain in the ass - no financing. They claim the IRS repeatedly tries to audit them but it doesn’t go anywhere as they are literally classified as non-citizens and fall outside of the US jurisdiction. They just have to file accordingly as foreign workers ( IRS attempts to prove they are still citizens ).
https://www.irs.gov/pub/irs-pdf/fw8ben.pdf Here is a W-8