RE: Evergrande Already Liquidating

9 mo
LeoFinance
1 Min Read
112 words

From my point of view, I believe that the Chinese government will choose to protect the foreign investors who involved their money in this Ponzi scheme called Evergrande and will leave the local small and medium capitalists out of any kind of plan to get their money back. Some believe that Evergrande is too big to fail, but I think it has its fate marked like Lehman Brothers in 2008, its debt exceeds absolutely everything we can imagine and will affect not only the Chinese economy but the rest of the world in a much more lethal way than Covid19. Welcome to the collapse of the fiat system.

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The question is whether this is the tip of the iceberg. How much more is out there. This is a huge number for one company but not the only one that took this approach. There are likely dozens of other developers in a similar situation who simply are not exposed as of yet.

Welcome to the collapse of the fiat system.

We were promised this for 30 years. I disagree. If anything you will see the USD get stronger as a result of this.

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I doubt very much that the United States will benefit from this particular crisis in China, especially because of two factors: 1) The tremendous dependence of that country on the Chinese productive apparatus, which produces a large part of the goods consumed by Americans. 2) The gigantic debt product of the eternal dependence on a parasitic financial system that prefers to issue money to distribute it among the population and that these in turn feed the spiral of debts rather than integrate it to the large, small and medium producers within the country.

I know that announcing 'the crash of the fiat system' is as old as those who proclaim the return of Christ, but who can deny that we are already at least in the middle of the process... In any case, as the butterfly effect indicates, a small event at one point can provoke great catastrophes at another. Greetings and I enjoy reading your publications.

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The tremendous dependence of that country on the Chinese productive apparatus, which produces a large part of the goods consumed by Americans.

This is going to be a hit for the US, maybe for two years.

The shift was already taking place. Mexico is the largest trade partner for the US and is going to be the next China. There is little need to mess with China beyond the next 18 months. There needs a lot of construction to take place in Mexico which is already beginning.

China is in a heap of trouble. Even Japan is pulling out and moving more to Vietnam and Laos.

As for the fiat situation, it is going to take place for a long time. People think the USD is going to disappear, I disagree. In fact, since the US is only getting stronger, so will the currency. Plus, even though people moan about the money printing, the reality is that is what gives them all the technology they now utilize.

We are in a massive deflationary cycle. This is only going to enhance the USD, not take away from it.

Other countries that are in worse shape and do not have the technology (everyone other than Japan), is likely screwed.

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