Comments by "" (@thomasherrin6798) on "Financial Crisis Talk | Chinese Economy: Yuan Facing Crash? | Housing | Floods" video.

The state cannot control the Zombie that is the housing market at present because it has huge debts, property companies have about 1 trillion USD in debt, Trusts have about 1.5 Trillion USD in jeopardy, banks have around 12 Trillion USD in mortgages some of which have not been built and some are at high risk of default. As the total debt burden for China is at 57 Trillion USD it is unlikely that the CCP will buy all the housing debt out, as the debts would reach the total of China's assets!?!
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The CCP have always carried out currency manipulation since the latter part of the twentieth century, that's why they hold almost a trillion dollars in US debt (...and supposedly 6 Trillion in FX reserves where they declare 3 Trillion), they sell the dollars to prop up their currency or buy dollars to reduce it to a certain extent, if a large contagion sweeps through the Chinese financial sector then they will not have enough reserves to stop it, as the money will disappear down a hole rather quickly and they would be better off holding dollars in that instance. At present they are trying to influence the market but it's still going pear shaped as the CCP indicated previously they were going to inject some stimulus, which excited the stock markets and increased investments, the investors have released that this is unlikely to happen now and are pulling out their investments causing the stocks and currency to lose value!?!
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Obviously you did not listen to Bill Bishops warning, losing financial security could cost China to lose its food security, it imports quite a lot and it needs to be paid for, and energy security, it imports quite a lot and it needs to be paid for, and any imports it might need of which it imports substantial amounts, I don't think it will impact much on its territorial integrity as the World will stand back not believing the actions China will be implementing, it may even affect the CCP "control", it would be a catastrophe, just like the ending of COVID but on a bigger magnitude of scale, they obviously have to go through the slow puncture by slowly reducing debt routine like Japan but a few degrees worse as the overall economy is not as rich as the Japanese economy was, so it needs to add in more safety nets for the poor, that is it's only way out!?!
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They are nepotised into the middle or higher ranks of the CCP!?!
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I think they have an inkling, but under Xi not much of a solution that is palatable to the CCP, increasing domestic consumption means handing money from the CCP to citizens and with that an element of control, whereas the CCP is looking to exert maximum control over its citizens, hopefully it's a slow puncture funded by a little less stimulus each year until they reach the new normal, if it's a crash as Bill Bishop thinks Xi is contemplating it will be rather chaotic and fraught with pitfalls, I think the World will stand back and be on high alert at that point!?!
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