F.W. Engdahl -- China Debt Crisis Dwarfs 2007 Credit Crunch
If it were only Evergrande that is insolvent due to unpayable debts in a contracting economy, Chinese authorities could no doubt manage it in one or another way by demanding its state banks or large groups like CITIC simply swallow the bad debts to contain spread of the crisis. The problem is that Evergrande, Huarong, PingAn and other large Chinese property investors are clearly only symptoms of an economy which has taken on debt far beyond what was prudent. In April, Beijing’s CCP State Council told local governments that their so-called Local Government Financing Vehicles, with estimated (no one knows) trillions of dollars they had in unregulated shadow bank loans used to finance local projects, had to get rid of excess bad loans or go under.
On July 1, Beijing announced that local government revenues from land sales to developers, some half of all local revenues, must be sent to the central Beijing Finance Ministry and no longer used locally. That insures a catastrophic collapse in the multi-trillion dollar local shadow banks and construction projects. No more Beijing bailouts. At the same time, solvency of China’s fragile multi-trillion “small” banking sector is in doubt, as bank closings increase. Now, with national state-owned giants nearing bankruptcy, the verbal war between BlackRock and George Soros takes on a significant new light. China is in a serious debt collapse crisis.
This is the pot of potential gold which has Wall Street and BlackRock lining up outside Beijing. The Soros condemnation of BlackRock, the largest private investment fund in the world, clearly is strategic. Could it be that Soros intends to replay his 1998 toppling of the Russian bond market bubble after taking his profits? If so, no wonder the official China media calls Soros an “economic terrorist.” Whatever the trigger, such a collapse of the China debt bubble would make the 2008 Lehman crisis pale.
***
F. William Engdahl is strategic risk consultant and lecturer, he holds a degree in politics from Princeton University and is a best-selling author on oil and geopolitics, exclusively for the online magazine “New Eastern Outlook”.
Source: https://henrymakow.com/2021/09/china-is-in-a-serious-debt-col.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).