Evergrande just defaulted. Let the show begin.🥳
(media.greatawakening.win)
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Can anyone tell me what would be the effects of this event? I'm not up to speed on economics.
Ultimately this is the beginning of the collapse of the current financial money systems and the beginning of return of the Gold Standard back system
How do you know?
(Not being a dick this time - not well versed in finance, just wondering how this can be known. Also does this mean financial ruin for the average person?)
This could be the beginning of the NWO one world currency for all you know. Careful with the hopium Dave. Now, let’s talk about your health.
It’s one of the worlds largest debts owed and so therefore when it’s not being paid it’s going to cause the value of currency to decline
Thank you, that makes sense. How about the financial ruin for the average person part? :p
sure, but it's complicated, and i'm not really an expert, and i'm kinda high... so we'll see how it goes...
China's economic strategy has been 3 fold
This allows them to keep their costs of labor artificially low which makes them attractive for manufacturing (because foreign money buys a lot in china). Also with money being pretty much worthless comparatively speaking it doesn't hurt them at all to just print out billions of their currency and pass it around like monopoly money with good clean US dollars rolling back in via mfg and investments
this means it's very easy for them to buy up influence around the region (belt and road) and the world at large
Make the world reliant on you as a manufacturer of everything. Starting with trinkets and fireworks, then cheap electronics, now the list includes everything from chips to all of the worlds vehicle "brains" and computers to all the important chemicals and medications. all the investments are being made in china because of the devaluation of their currency is making it possible. the goal being to keep it cheap until they can shift gears and all that investment will pay off huge (which is part 3)
they are attempting to convince everyone to place all their bets on china and use every dirty trick in the book to make that a reality... because the more people of influence they can blackmail, the more IP and tech they can steal, the more influence they can gain over the destruction of their rivals (both in business and the politics)... the more money all those "investors" stand to make.
...however...
the problem is all of it is one big giant lie... it's all built on the promise that china is going to come out ahead at the end of this moment in history... but their gamble is built on the Ponzi scheme of unlimited growth and earnings potential
you see, all this investment is mostly based on things like evergrande style property development cons where they build massive ghost cities with absolute shit building practices... the buildings remain vacant and they all start crumbling after a few years because they are made like movie sets. as cheaply as possible, as quick as possible, then slap a coat of paint on it and show it off to the investors.
streets buckling, stone work falling off in the rain, hollow walls, leaking roofs, electrical fires, structual shit made with bamboo hidden with plaster (not even kidding).
problem with investing in growth is when there is no growth, and there are no droves of people moving into these cities, and there is no massive workforce ready to work at all the factories that the CCP is trying to con people into building... it all falls apart.
because it's all fake bullshit and the whole world is starting to figure it out.
evergrande defaulting is a serious deal, it's going to screw a bunch of investors sure... but more importantly it's the canary in the coalmine for all these other potential investors. people are going to stop investing and start moving money out so they don't get burned, the ripples are going to touch everything.
this is just the tip of the iceberg, hopefully others can chime in to add or correct me... but that should be enough to give you a general overview.
hope this helps.
Trump was bellowing about this over 30 years ago on shows like Rona Barrett and Oprah. They would often ask respectfully if he would consider running for president.
Funny, no one ever asked him about being a racist or nazi Hitler back then. Very odd. Maybe he isn't one??
It means: SHORT CHAYNA!
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I wrote this 2 months ago, and I hope it helps to enlighten the dark corners of currency manipulation.
https://greatawakening.win/p/13zfva5yIi/x/c/4JFoFsctx2Y
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There is another side to currency you have not mentioned. There is a currency was going on, or rather, CCP and US are enthralled in a war that is fought in the financial arena (among others).
It is not so much CCP could not up the liquidity. It is a simple matter of printing it/ creating it. Let's consider one asset:
Asset 1 is the basis on which paper currency is produced. Let's say, a hundred paper yuan's. These go into circulation and change hands over and over again. This means that asset 1 can push a multitude of transactions.
On each transaction taxes are due, so in the end, the amount of currency decreases over time and ends up where it originated: with the CCP who created it. And if more currency is needed, Because without currency, trade stops when no currency is available, , it is a simple push on a button to create more. Asset 1 then can be burdened with several rounds of currency creation, without anyone noticing.
Asset 1 can be many things. Buildings, persons, a right to tax, a right to lease. Coincidentally, the CCP owns all the land on the mainland. People can only lease their plot. Infrastructure increases the value of land.
It is easy to see how currency creation and investment fuels the next round of what is now called quantitative easing (neologisms always tell you what the lie is!), or in short: flushing the market with cash.
However, the more currency comes into circulation, due to demand and supply, the value of the currency will suffer changes. Access to this currency can be restricted, to artificially keep the value higher. Or, access to it can be loosened, causing the value to drop, meaning, the amount of goods and services that can be bought with a unit of currency changes over time, up and down.
How can you wage a war against your major opponent via a currency war? Especially, when you try to maintain a peg to the currency of your opponent?
Enter the bought and paid for rinos and dems. IF they create 3.5 trillion extra in currency, it is easy to see, in order to maintain the peg, where the room to create 25 trillion yuan comes from.
When Trump said, the CCP was manipulating it's currency to maintain the peg, the CCP is forced to dance with the devil due to the peg. IF it wants to increase it's value against the currency of the opponent, it must follow a restrictive currency policy.
So, how do you increase the value of your own currency? By soliciting of the dems and the rinos to create vast amounts of currency in their denomination. Hence, the 3.5 trillion. And let's be fair, more is to come.
Meaning, that the CCP can look forward to upward pressure on the Yuan. WIth this pressure it gives the opportunity to create more liquidity to ease the markets.
This ties in with the political system. When one section of the financial market goes bad, the government has the liquidity to move in and stabilize.
Here is where it get's interesting. Despite the vast amounts of currency already created by the FRN crowd, the 3.5 trillion is on top of that. And the amazing part is, we see the EUR/FRN relation as now 1: 1.16. Not so long ago it was 1: 1.18. And in the beginning of the year: 1:1.23 (Amazingly: the exchange rate now is 1.13!!!-red)
Meaning, with the currency creation by the FRN crowd, we see the Euro losing steam. The only reason that can happen is when the Euro is creating more euro's for the financial system.
Remember, eventually, the BIS (Postal) is behind all of it, and orchestrates in collusion with the IMF to move closer to an SDR financed world.
And since the UPU is making sure every person is hooked up to their postal system for access to internet, government services, commerce and birth certificates it is easy to see why the need arises to stifle competition and make the world a bit more predictable.
And being unpredictable is the most important accusation leveled against Trump. Unpredictable in a "rules based international order". What exactly these rules are, they do not tell you, but they become clear once you look at the moves of the UPU since 1871.
One other aspect needs to be taken into account: Money creation fuels inflation. However, industrial production fuels specialization and production maximization, or streamlining the process to it's optimum. This means that products over time decrease in value. Because optimization leads to a larger number of products in the market and thus, by supply and demand, a lower value.
You can appreciate from this that inflation is not easily achieved by money creation alone. And why is inflation important? Well, not to the average user. As an average user, you want prices to go down, or deflation, because with the same amount of money, you can buy more.
However, when you have a debt of say a 100 and every year inflation is 2%. In 30 years, how much is left of those 100? 2% times 30 is not the real answer, because inflation builds up over time. it is 2% over 2% over 2%, etc. It is called compounding. Meaning in the first year that 100 decreases in value of 2%. Nominally it still remains 100, but what you can buy with it decreases with 2%. The buying-power of the currency deceases. So, in the first year 100 -2% = 98. In the second year, 2% of 98 = 96.04. In the third: 2% of 96.04 = 94.12 etc.
In the total of those 30 years of 2% inflation a debt of 100 decreases to 54,54. Almost 46% decrease.
It can be easily appreciated how huge government debt over time is not a problem for the government, as it's value in the present is eroded over time. This is why you hear Central banks insist on creating inflation.
It is also easy to understand why deflation is a horrific idea to those governments in debt. In such a scenario, the debt would INCREASE in buying power.
It is also easy to see that the more you start to tinker with the concept of a free market where prices are set by the market, the more you need to control. Because now you want to "guide" the spending habits. First they will try this by regulation and taxation, excises, etc. By increasing the taxation, people will make different choices. Consider the imposition of taxes on fuel.
A second way for a government to impose itself on the habits of people, is by subsidy.
A third is by outright mandate or prohibition.
Now the circle is square and you are looking at the world of today. Welcome to 1984.