CHINA Trillion Yuan Debt Disaster: Stimulus Fails to Deliver Economic Growth & Investment Collapses
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In this video I investigate what is happening in the Chinese Economy. China has announced that is raising 1 TRILLION YUAN of debt in the form of long dated bonds of up to 50 years. Over the past few years China has increased the amount of Government Debt to STIMULATE the Economy however this is now having a limited impact due to companies using the new debt to REFINANCE old debt and also to invest into financial instruments rather than for business purposes.
For specific details please check out the CHAPTER list below.
Thanks for watching and please LIKE and SUBSCRIBE.
Chapters:
0:00 Intro
3:27 STOCK MARKET
7:16 FOREIGN INVESTMENT
10:10 DEBT STIMULUS
12:32 RHODIUM RESEARCH
13:56 PROPERTY LENDING
16:48 GOVERNMENT DEBT
18:13 SUMMARY & CONCLUSION
#china
#aluminium
#basf
#tesla
#volkswagen
#bmw
#unitednations
#stockmarketcrash
#snowball
#globalrecession
#inflation
#technology
#wheat
#interestrates
#india
#Belt&Road
#globalrecession
#globalfinancialcrisis
#russia
#Evergrande
#China
#Recession
#Zhenro
#Bonds
China is committing the same grave mistakes the USSR did:
1. Engaging the US and the West in an arms race;
2. Buying friends and allies with enormous sums of loans and aid which have no profitable returns; and,
3. Constructing or embarking on vanity mega projects.
China has far greater capacity to be in an arms race.
China does not have capacity for an arms race if their economy continues to fail...if you don't believe me ask Russia.
@@considerthis7712 If you can cheat, then cheat “能骗就骗“ Three things china cannot counterfeit Ethics, Honour and Freedom
@@considerthis7712 China is going ahead in leaps and bounds.
(2) doesnt matter as much as if it is nominated in RNB/yuan, they print so much new money it is just put as loss realizing risk... btw which west should do too but doesnt.
Tip: don't invest your money in stocks from imperialistic countries ruled by dictators ( Russia, China,...) . Invest locally and support your own economy!
Generally, dollars convert into dollars well I find.
That includes despot Netanyahu
Greed does not listen to reason.
@@canyonroots it isn't greedy to make money, it's greedy to make money at the exploration of your fellow man.
@@tyllerboomgaarden7344💯
One factor I didn't hear in your analysis is the chilling effect that Chinese corruption and anti - foreign business crackdowns that have been scaring away foreign businesses.
Try some of his other videos, it's covered in depth
Wishing the worst for Xi and the Chinese economy..
???? Then you are also wishing for the worst for the rest of the world economy too. China is a big share of the world economy. When they do bad, usually the rest of the world does bad too. When China prospers, the rest of the world usually prospers too. I am for prosperity.
Should we ever trust any economic statistics coming out of china?
From Tawain with love, I presume? 😆
Maybe he will take the choppa into the mountains. Literally.
Could not happen to a better cancer/snake.
A better Pooh Bear.
😂 Indians
China tried so hard.. but just couldn't do it
most of the stimulus was probably syphoned away by corruption. It didn't help enough people.
China could; the CCP got nervous and they value their continued power above the lives of their people, way way above them. Its all about the communists staying in power, the Chinese people are just pawns in their game.
CHINA:
If you hold the world in contempt.
The world will hold you in contempt.
Well put.
What world? You mean the US and its lackeys?
The problem is XI doesn’t care about anything but power absolute power corrupts absolutely
The world has no issues with China or Russia, only north west Europe and North America do
Thats what everybody is thinking about Xi I suppose. A leader with always the same expression on his face : A disgusted superior pokerface. Just a plain enigma this person who runs the biggest communist state ever.
I don't think you can talk about global investment in China w/o talking about their support for Putin and their actions toward Taiwan. I watch a few channels about China's economy and always wonder: With the CCP in charge, how "free" is their market and how can any of the numbers be believable?
exactly Joe numbers are top notch the only thing is for 2.5 years we listen to Joe how Russia is falling apart but not in reality 😂😂😂
Russia in the long term will fall apart. Common sense says this. Where is their foreign investment? Ukraine is now attacking their refineries, the male workforce is also dying at a rapid rate. Also their war machine economy can only last so long
I dislike the power and cruelty that mark the communist system. Also their reason for existing is to over power and invade other peoples countries. What a dreadful raison d’être.
@@jetserbikr Russias economy collapsed 3 years ago 😂
@@jetserb Russia was a third-world economy to start off with, with a tiny elite living in luxury while many still don't have indoor plumbing. So yes, it will take a while for the average russian peasant to notice much change.
the Fed did similar things during the decade 2009 2019..the difference being that it did not provide direct money to investment funds. but it kept borrowing costs close to zero and therefore facilitating profits of a miriad of tech companies that would have gone belly up otherwise. the point is that Chinese economy is going south DESPITE these stimuli.
It's quite shocking
Um the US economy went south despite the stimulus. 😂
@@ForageGardener no, not really. Maybe in some parts. Within less than a year we were back to normal growth
Does no one else notice that CCP is sucking all the profits out of all the Chinese companies. Also is about impossible to get your money back out of China if and after any company has been profitable. At some point it all gets sucked up by the CCP. Lots of Ponzi companies. Does anyone get out of China or Hong Kong with their money or profits unless they sell out for penny's on the dollar? All these western companies going in worried about being left behind, good luck getting out. Am I wrong about this or is that the way things actually work there.
Centrally planned economies that alsoare anti free enterprise cannot really thrive and survive in any but the most random of cases. China is doomed by the resurgence of the CCP and their hatred for entrepreneurs. It seems they really believe they can stimulate their econonomy back to health, but the challenge is that any stimulus will be misdirected as it will be applied where the central planners think it should be rather than where the economy would direct it if it were free.
Joe blogs are one of my favorite TH-camrs!
💩
Stock manipulation is why I have stayed out.
China: The Land of Make-Believe Success, Make-Believe Talent, Make-Believe Power.
And make believe corporate financial statements.
That's why the term "Made in China" is literally just another way of saying "junk."
Hahahaha I'm loving the make believe cope
It's really funny because there are actual critiques and risks to be said about China
But it is SO TRANSPARENT that y'all are just grasping at anything that can be used to support your make believe idea that china is collapsing in three days (any day now folks!)
That's why they counterfeit everything....it's the worst they live in 😅
Make-Believe products
Thanks!
Thank you very much!
Thank you for another excellent video!
Are you sane??
Are you sane??
@@DK-ev9dg Do you get paid for these boneheaded comments?
@@billfrehe6620 you guys are all paid for this western propaganda. I'm in Europe and I defend china all the times. And I'm very upset at the hypocrites who use Chinese products yet spread hate about China.
@@billfrehe6620
He's a Wumao.
Great video Joe, keep up the good work.
Thank you
Great content Joe 👌
Very good video, thankyou
Very interesting!
I have always struggled with the markets as I couldn't get my head around it.
But you explain this in such a way that even I can make sense of it.
👍❤️
Bedankt
aw cute doggo at the end, thank you for the update!:D
Thanks for covering this topic Joe. I think this topic needs more of a voice. The implications are massive.
China's support for Russia's war of aggression is not an "advertisement" for China as a tradingparner.
Obviously they are prepared to die for a friend. How noble of them...
I call it the Chinese OOFconomy. It goes OOOOOOOOF!
China GDP growth is 5.3% ... That's called failure
USA GDP growth is 1.9% and it's considered robust .
MANDATE OF HEAVEN 😎
cold.
@@dsamhbut fair
@@dsamh perhaps but it is so
😂😂😂😂😂😂
@@dsamh. The double entendre is delicious
Who wants Chinese debt...!?
Maybe Russians, lol.
Especially before a war they're about to start
They have zero debt, the own over a trillion of US debt, without China the US stops. Now run along, get a job and sort your racism out.
@@sonialelii9038 The USA relies on China to prop up its economy. China is booming.
Chinese banks probably.
Word on the street was of some massive blanket bailout of the Chinese Real estate sector. Given China's constant push like Japan has done for decades now for low to negative rates even leading aside tariffs and other sanctions placed on Chinese businesses this still seems very bad if not critical for the Chinese Yuan #malign_neglect #currency_war
China will just cook the books +5 gdp problem solve.😅
Every country now cooks the books , especially Us and Uk after all that money printing
Another outstanding report -clear, succinct and informative. 👍👍👍
GOOD
The Chinese dragon is eating its own tail.
İnteresting ❤
China successfully outpacing the West in making the same dumb financial mistakes they did. Have Grandpa tell the kids what lifew was like in 2008!
*😂🤣🤣🤣* _ *They're not even close eh lol*
Don't worry about them. Have you paid your rent and eaten breakfast?
Ask that to the unemployed young Chinese
Life in 2008 sucked. The Bush years wrecked America's economy.
@@DK-ev9dgyou’re definitely can’t afford yours, pinky
Joe, please make a video ot the economy evolution of the UK of the last 14 years.
it's just like peeing your pants
it heats only once
then it gets cold
😂
😀
Good of you to explain it.
Wouldn't have gotten it otherwise 🎉
great video 👍
Joe,, What about a video on all the companies that left / leaving china and where there going and why ? Thanks
We can only join Patreon if we have a smart phone apparently. Did you know that? I will never have one - far too expensive to run! Really appreciate your posts. Completely differnt from others. Thank you. .
Good dog.
So china is paying its self to pay its self to look good 🤣
Stock Buybacks?
Their whole economy is inflated and artificial. China is known for making cheap fakes. Their economy is a fake version of a real economy.
Yes, but we in the west do it too, called quantitative easing
@@solaireastora5394 Digital counterfeiting, a bit different and only possible because the USD is the currency of reference.
Um ... *Itself
Could you please make a chapter on the economies of different European states? It appears that the war in Ukraine has had varying impacts across Europe. For instance, Finland, Germany, and the UK are experiencing recessions, largely influenced by the conflict and other factors. Meanwhile, Spain's economy is booming.
Well, the stock market is a decent indicator in a capitalist economy. The problem in China is that you might have a great company that's making lots of money offering, say, tutoring. And then the CCP just says "nope, that's not allowed at all any more" and it goes to zero with no warning.
Good job. Can you tell us what happening in turkish economy ?
Hi.
Thanks, Joe.
And great to see your face on the videos.
The China and Russia economic beat reporting is fantastic.
Keep up the great work!
✨️
And maybe if he could predict anything, would be even better …
Bot
Hey Joe!
Hi again Joe, I see the Foreign Investment level dropped significantly from 2021 onwards. What happened before that could cause that? Would it be a build of offensive financial worries 1) Covid 2) Evergrande (etc. there are many) 3) Supply Chain bullying 4) combined with what you are stating. Not worth gambling with!!!
Right, and my understanding is the govt isn't supposed to be a direct investor into their companies for the sole purpose of propping them up.
Yesterday Chinese President looked very worried 😂😂😂 He said to Putin “Joe is making a video about China” Let us a prosper then indeed 😂😂😂
Joe reports the news, perception, and projection: "Here's some data!"
Random unhinged commenter: "lol, so scared! Wow, things look fine for me! Ha ha, still waiting for the sky to fall!"
The picture hanging on the wall past your newer artwork is a distraction to the art form. 😮
Another Good News 😂😂😂🤣🤣🤣 Music to my ears China is Declining 🤭🤭🤭
Me too - Taiwan will replace it, that is the land of the real Chynese
Can we have a show on the Comex and copper shortage.
Does China not realise that cosying up to Russia means more and more businesses will look to alternative suppliers.
The greedy Western Corporations don't care about anything but their bottom lines. They will continue to buy from China for as long as it benefits them.
China is so desperate for business that it has to do more business with Russia.
China has no other choice left.
What businesses ? U mean European dying economies will not order smthng, 70% of the world will still do busines with both Russia and China …
They are comunist. Always is the same %^&*()_+
Very insightful information, Joe. Thank you. ✅
Great Video Joe, The China Bubble has been a long time coming, the whole world will feeling it when it crashes, thanks for sharing
Prove it
China GDP growth is 5.3% ... That's called failure
USA GDP growth is 1.9% and it's considered robust .
I have friends on China and I feel for them. They work really hard but their money is lost.
Also, how can you trust their data?
Adding on debt that does not increase production will exacerbate the problem, in this case for a century to come. Not good.
Excellent video, thank you.
A very nicely researched, detailed and analyzed segment. Warmest compliments. Thank you, sir. :)
The should not manipulate the markets !
That is Polosi's gig😂
I wonder when it will fall apart?
What does this do when they switch to BRICS?
Joe- great overview- would credit be funding China's gold reserves ?
I hope in the China local government debt video that you go over that the debt comes from trying to reach GDP targets set by the central government and that they go into debt by building infrastructure they don't need and can't really use because it looks like growth on a spreadsheet but in reality doesn't deliver increased economic activity to make up for it.
If they are going to bail out, they need to bail out while the market still has some confidence left. Doing it after the confidence is gone, it’s a very up hillside battle to get back where you were right after the crash.
To be fair, EVERY country manipulates its economy and its stock markets through its central banks and monetary policies. Additionally, nations that heavily rely on exports, like China does, are a bit more aggressive at weakening their own currency relative to the dollar and euro so that their goods are cheaper to Western consumers.
Also, a National Debt-to-GDP ratio of 79% is actually not that high compared to ours here in the USA, where it's been well above 100% since the COVID pandemic.
That said ...
The CCP is likely overstating the GDP numerator part of that 79% ratio since they can do that in a nation with no political opposition. Conveniently, they have refused to allow outsiders to see their "books," so their stated GDP numbers have likely been a pile of pooh-pooh for quite some time now. In fact, I wouldn't be surprised if their national debt-to-GDP ratio was between 125% and 150% ... but we Westerners will never know the real truth as long as the CCP remains in power.
The million-dollar question for now is whether or not they've hit the bottom yet? THAT we will know after a few years.
Well the wave is always higher before crashing
China,Russia phobia is amazing 🤣🤣
You forgot to add phobia of Nazi Germany, because all three of them are the same kind of dictatorships
@@paulietv2162 China and Russia are the best
THe us, Nazi Germany and UK are the worst and the same shit
@@paulietv2162 well nazis were defeated by china and Russia
@@JonySmith-bb4gx China did not defeat anybody in WW2, they were saved by Britain and America. As for Russia, they spent two years trying to make pacts with Nazi Germany while Britain and the Commonwealth were standing alone against Hitler
Not really, USA provided Russia with a massive amount of war time products under the land lease agreement,which Russia never paid back. Like 14000 planes, 10000 tanks, 400000, trucks ans small vehicles, 4 million tons of petroleum products,/.4 million boots, 100,000 tons of cotton, medicines and more amounting to 100s of billions of dollars worth.
You do excellent work. Thank you
Thanks for clearing up the Chinese data. One point about new investment. As I understand it, China counts the investment of foreign companies in China as a 'new' investment, even though it is mostly profiting from their Chinese operations that the companies can not get out of the country because of currency controls.
And if you think that is crazy, look at how many of these investments are into the manufacture of military technology and companies that have been set up to produce products so cheaply that they put western companies out of business, creating western dependency on China. Western capital is being used to destroy the west - and we're going along with this. Maybe we should put huge taxes on these investors and use the raised funds for defense before its too late.
👍
Nov 21st, Mar 31st
Yesterday China apparently refused Putin's request for the Power of Siberia 2 gasline. Seems China is at least taking less risks now 😏
Greatly enjoyed (and appreciated) when you stated "stock markets don't lie... IN THE LONG-TERM." 🙂
Let me take from this pocket and put it in the other pocket and we will call it growth.
That's a fairly succinct explanation of how all stock markets "work".
Now we just got to figure out if you were poking fun at the French, British, Russian, American or Chinese economy... 😆
@@nvelsen1975 Well, only the Chinese are communists and you can't trust communists.
The debt-based system has created an environment where the pursuit of profit often takes precedence over people’s well-being. This has led to an incredible buildup of debt, which can no longer be sustained. The consequences will likely be far-reaching, impacting individuals, businesses, and governments alike.
Thank you, Joe ❤
someone told me they have a hundred words for 'lie'. says quite a bit. now i want chicken fingers and boneless pork strips. ugh.
geopolitical Jankin: Agility beats dogma; dogma beats debt; debt beats agility.
Keep up the good work Joe
It took American 247 years to build up to the level of debt.
It has now.
China is in half of amount of debt as America.
They acquired their debt in just 30 years.
I’ve always said china is built on credit card debt! .
Is this some scripting error, or how else do you get newline symbols into your text. Bot?
It took Trump and W Bush for half of the current American national debt, if Clinton's budget surpluses had been continued by Bush the national debt would have been paid off by 2009.
And their GDP is 30% of what they say. Bad times ahead for the mainland Chinese.
Yeah rebuilding civil war protecting world too
Yeah. And Trump created 1/4 of that debt in only 4 years. Republicans are a disaster.
That New Investment in China chart that you showed should be called the "OMG Chart".
Very dramatic !! I don't understand why the govt. didn't put restrictions on the money it has pumped into the economy like no using it to turnover old debt. As out of touch as Putin?
Ask the fund houses. They know better. That's why they are continuing to hold or increase their positions on Chinese stocks.
@joeblogs what is your assessment of the impact to the world economy if/when china's economy goes belly up ? I'm not an economist, but it seems to this country boy that it won't be pretty to have any economy the size of china's implode.
Joe price of gold and silver is increasing significantly in recent history!
Rumors are Chinese or China is buying in significant amounts.
How about a video on gold and silver?
No Chinese and Russians are dumb they are not capable of anything smart so even if they buy gold its just another mistake - Joe please elaborate 😂
Crooks robbing crooks and scammers scamming scammers.
U described USA
@@JonySmith-bb4gx Please kid.
@@GHST995 like I said . U described USA.
@@JonySmith-bb4gx BYD cars constantly explode from poer craftmanship and poer quality.
@@GHST995 yeah ok prove it
Show ncap test results of Europe , Australia UK Japan .I ll wait
I saw how u skipped over the fact that byd created the first plug in hybrid and hybrid system and ev connections
use an add blocker for youtube
Don't need to. I make min wage.
What does the Chinese economy mean for the U. S. debt that they hold?
That's a well groomed pup at the end!
Investing in financial products and buying gold because they dont know what else to do.
Because it takes independent people with an opinion to build up a country.
The "smile on your face" video finally worked for me!
Thanks again for the insightful analysis and the warm fuzzies at the end.👍🏻
TBH any increase in a stock market needs to be adjusted for inflation in that country. The U.S. stock market has actually LOST value in real terms.
I think it's genius that the state buys stocks in its own companies, especially when they're dirt cheap - you just gotta avoid the stalemate that happened in Japan in the long run. So if the companies commit tax avasion (which come on, all the mega cap companies do) society still ends up with some of the benefits
Didn’t realize that a requirement for being a “world leader” is debt. Whelp, I’m more than happy to let China have it.
What you are describing is business as usual in USA - debt financing to maintain economic stability
Thanks, Joe. A very useful explanation of what has been happening in the Chinese economy. I love the and finally too, that's a dog who knows how to have fun!
Check this out Chris