Is China’s 'New Silk Route' Doomed to Bankruptcy?
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Lately, Xi Jinping's regime is in the soup. It doesn't matter whether we are talking about Ukraine, Iran, Venezuela, Brazil or the South Pacific. This country is constantly making headlines that almost always have one common denominator:
The ambition to extend its influence throughout the world as quickly as possible.
Beijing has drawn up many plans for achieving this goal. But so far practically all of them have always had one main ingredient: investment, investment and more investment. The most significant of them all is known as the "One Belt, One Road" project.
It is one of the most ambitious infrastructure projects in history and Xi Jinping's biggest gamble. It was announced with great fanfare in 2013, that is, already a decade ago. So the question is: What result is Xi Jinping getting from his most ambitious project? Is the future of the New Silk Road under threat? Why is China devoting tens and tens of billions of dollars to bailing out other countries? In this latest VisualPolitik video we tell you all the details.
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#China #World #Economy
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I see Grant is wearing what looks like a VisualPolitik EN t-shirt. Where can I buy one too?
Can you tell your host to brush his teeth
Kush Patel, He does you ignoramus .
I'd have to disagree on one aspect of the ending piece. These mega projects seem less like the U.S Marshall plan and more like the massive projects to procure loyalty, growth and influence undertaken by the Soviet Union in the post-Stalin era which helped lead to massive overspending and its eventual collapse. Another problem is that China relies heavily on foreign companies and investment and Xi's turning the country into a 1-man state has severely shaken not only their confidence but that of many of their own (especially wealthy) citizens which has led to capital flight and a net outflow of cash.
How about the US plutocratic regime that killed millions of people for profit??? Tens of thousands of their own people annually are included(opioid). And till this day. Not a single elites being charged
So, the CCP may be learning why the capital of Western countries did not go into those countries despite the possibilities (in theory) of return on investment.
The bad thing for them is that instead of learning from someone else’s mistakes, they had to experience them themselves and haven’t even begun to pay for those mistakes yet, smh 🤦♂️ why do they have to see the US as an enemy, just because CCP for whatever reason feels they have to be superior to everybody else in the world (the US is made up of ALL of the world’s races and peoples(including Chinese people), they want countries to pick sides and bow down and choose sides with an authoritarian regime that oppresses their own people how much worse would it be for other countries’ people…. what gives 🤷♂️
Some of these countries will only be used for logistics during a potential war and being sanctioned, like Russia, since it invaded Ukraine.
Exactly
Why would us want to counter a failed project?
By this video definition ..all houses bought with mortgage in US is a debt trap
"Fake it till you make it."
- Xi Jinping
Except his "faking it" is becoming too costly on his own people and their economy.
You don’t always make it when you fake it.
Until you're bankrupt.
worked for us
biden: don't let jew alive
After WWII, the USA invested in a lot of countries with high potential. They were highly educated with industrial expertise which was underutilized. China is investing in countries with low education and were never industrialized.
Pretty much like playing a game of Monopoly and joining after 1 player already owns all the important asset on the board.
They are not actually investing.
They are trying to control those countries by putting them in massive debt.
We're industrialised at small medium scale but silke Road coz china was pouring money carelessly into every project to appease us rather than focus on the crucial architecture needed to boost our production levels
I think this video is based on a free floating economy. China is building this network with a union of authoritarian government. And this net work, currencies behaves very different. The ports, trains, and road are built with shipping goods to and from China effectively. The monetary system can be fixed accordingly, unlike the western counter parts like IMF.
Xi is thinking, I have got 1.3 billion people in China consumers, all they need is a system where raw and processed materials can be imported from all these place to satisfy the needs of this big population. The numbers can be fixed.
Keep an eye on Pakistan and Sri Lanka. These two will give you an example of how to fix the numbers.
@@edmundleung2098Sri Lanka and Pakistan are imploding... Sri Lanka has basically no foreign currency reserves to trade and it needs exports to survive.
I can't even keep up with Pakistan but from what I gleaned if has gone to the toilet. Which is terrifying as they are a nuclear state with major gripes with India.
Wow it's as if there's a reason why Western Countries have always been slow in their investment on these countries.
It's as if risk the risk of corruption, debt default and government instability play a huge role in this decision.
yes... USA was much smarter... look at the 2 trillion dollar success in Afghanistan.
I was thinking along the same line. China basically picked up the dreg that the West didn't want to touch with a stick due to authoritarian governement, corruption, poor institution ...
Must be why IMF charges 17% in loans to third world developing countries? Logic?
@@teerificbitch It doesn't. IMF loans are up right now from a year ago but it's still a raise from 4% to 6% and least according to the IMFs most recent reports. Which are public record. Where did you get the 17% number?
@@Ethan-hf5cg Also no one seem to care when third world can't pay loan to IMF (witch is basically G7 countries), but can't sleep because third world can't pay loan to China.
Investing in poor dictatorships that had no means to pay you back on infrastructure they don’t need, how can it go wrong?
roads and ports will eventually pay off.
I mean China is the worlds largest exporter.
these countries no matter how poor will eventually buy cheap chinese stuff.
they are poor so they could only afford chinese stuff.
The default on loans was the plan from the beginning.
@@sarahrosen4985 But not every plan works as intended...
It is America that is heading for a catastrophic bankruptcy, because so far America's economic strength has come from countries that have been robbed of their economic power through dollars which are immediately printed massively when America runs out of money, now many countries in the world have realized that as long as This is deceived by the American dollar, whose real value is only the price of a piece of toilet paper, if you don't believe it, exchange all the dollar bills circulating in other countries to America for gold, silver and other valuables, mining oil, gas, uranium, gold, it won't even be enough If all the planes, tanks, cars, ships, American state-owned buildings in America are used as exchanges for the dollars that have been printed, it will not be enough to cover the value of the dollars that have been printed, so as long as there are countries and companies that are stupid, they still want to be paid in dollars. America, the country and the businessmen will be used as hosts by parasites of the American economy to support the American economy, which is actually far worse off than the Sri Langka economy a million times.
The World Bank and IMF have done this successfully for decades. Most indebtedness of poor countries is to these organizations
Just because you owe money does not mean you'll pay, or give up your possessions without force .
What kind of 'just because' shit thinking is that?!
@@jgozter You never heard the phrase " dead beat "?
@@jgozter probably based on the fact that those in charge of such nations are famous for corruption, skullduggery, and in some cases, literal terorrism. Don't forget, the relative peace we are facing is pretty new. If political situations decay further, it's not unreasonable to think they'd go 'come and take it, oh wait, you can't'. They don't have to be able to take on ccp, they just have to be able to cause a big enough kerfuffle that ccp has their hands full until the leaders, many of whom are retirement age, no longer need to care. The nation will drown in debt once their elite have secured themselves, etc.
By West analyses China since 2005 is constantly near bankruptcy 😂😂😂
Well China is pushing propaganda everywhere that the USD is soon lose its reserve currency status where as its no where close. Lets see what happens.
Nope, but were good at risk management. And if theres too many risks involved we will point it out
@@nenasiek You better figure out how to save your own banks. Three American banks collapsed in a row within two months
@@aburetik4866 im not american
😂😂Even Before this year they told evergrand will Take down chinese economy
2013 Xi: Move aside Nations from the decadent West- I'll show you how to save the third world by pouring money and getting the locals to be thankful and will cement it as the Chinese century!
West: *hoarding popcorn seeds*
2023 Xi: WTF, how did they lose all my money?! Hey West, It would be nice if I get some help with all these debt defaults!
West: *grabs popcorn*
yes... USA was much smarter... look at the 2 trillion dollar success in Afghanistan.
except that was chinas plan all the way. now dollar will lose value to the point debt will be neglectable, and brics money comes to play. in the mean time china wilm be seen as saviour 2 times, once they lend them money, and now because they offered debt cancelling by pulling dollar down. great long term thinking. west could not do that since would mean eitjer euro or dollar would have to go down in value, only inflation would help to do that (and it is executed). so west looses either way in that strategy by hurting itself. china will throw in brics money as stable currency and too late for west to do anything besides war
@@biachpiach nobody is going to stop using the dollar.
friends, this is what smoking does to your teeth.
This is what ADHD does to a video. Me thinking that I'd set the play speed high...
China keeps thinking "Why Not?", they forgot to ask "Why?"
Man you need to go to the dentist to clean your teeth, the color is starting to match the youtube hanger thing behind you..
😅 god I was hoping someone said it lol I just want to see the cool video cover and the map displays.
The origin of the project is a way to circumvent the blockade of the Malacca Strait in case of war.
But they are also claiming South China Sea, where Malaysia, Indonesia and The Philippines also claim. So, not very strategic.
Regarding China's "New Silk Road" -- one has to know why the first silk road died.
The first silk road died BECAUSE Europeans found a sea route to the Orient.
So, it was cheaper to trade goods between Europe and China/India by sea.
THAT is sill the case.
So, even if China built many railroads and roads across Asia, connecting ALL the nations of Asia with each other and Europe ----
maritime trade will always be cheaper - especially bulk cargo.
Not an expert but I guess sending goods on rails could be more efficient, plus BRI includes developing air and sea ports as well. But if you look at project undertaken even CCP has difficulty in stating which project is under BRI or which is not.
Just like Metaverse, even Zuck got not idea what is it or when it will catch on.
yea... roads have more of a political issue which is equally as important add to that many fragile products like fruits for example are better off stored in fridge by rail instead of the massive loading and unloading of big ships that results in many damages and losses also you would save a couple of weeks or more by rail and would actually increase the quantity and distribution without unloading to trucks then to pick ups ... railroads have their strategic importance i think china is doing great by promoting peace and progress at the same and also to notice that their main focus is infrastructure so that aint going nowhere no matter the change in the political agendas of the countries cause once u have a robust, integrated railraoads network then u gonna make money even with the worst partner ... this gonna take another decade or 2 but no doubt its must do agenda
@@dashmeetsingh9679 Craig is correct. Maritime trade is much cheaper than road, rail, or plane. That's why 90% of world trade is by water.
But if the US decides to blockade during the TW invasion they see screwed this provides another option
@@dashmeetsingh9679 Water transport is much more efficient. The US uses both. Water transport is cheaper - whether by barge on a river, or ship along our coast.
I know specifically with Pakistan, the US strongly considered a similar initiative in the past. It was scrapped due to Pakistan deemed too unstable to invest so heavily in. China is "reaping" the "benefits" of this now.
If China wanted to temporarily buy influence, it made sense. If they actually needed that money back, it's stupid - strippers and all the champagne would have been a better investment.
china see long term u west see short term
@@herman-6839 And also with hubris. Chinese think themselves superior so they are starting to fall into traps of arrogance. US has suffered the same issues.
and now Pakistan begging for IMF money
@@herman-6839 look at Pakistan now
A good rule to follow is choose your investment partners and opportunities wisely. China's criteria is "hey, just give us a thumbs up when we call on you and you've got the money, regardless even if it doesn't fit a business case/reality reality or not". Bridges to nowhere. Good money after bad I say. Will catch up with them all. And in a more limited way ripple to the rest of the world.
If I loan u a thousand bucks then it’s your problem, however if I lend u a million bucks then it’s my problem.
Countries want those projects because corrupt politicians pocket billions. The borrowed money also goes to Chinese companies and Chinese workers. Those poor countries then expect the rest of us to service those debts via IMF and other international agencies.
Bottom line was pretty simple, even authoritarian regime needs some shiny piece of hardware to make people look elsewhere. Hence bridges to nowhere, grand statues, trains etc. CCP needed these infra projects to boost their GDP figures.
CCP's unsaid clause is "you give me your freedom, i will give you prosperity". Which really worked till covid.
@@dashmeetsingh9679 There are no certainties only probabilities, but it doesn't seem logical to do all this hassle and don't play for the long run, time will tell.
why would US want to launch similar project to counter BRI, a failed project?
The problem with that project is that it goes through too many unstable countries.
The project looks fantastic on the paper, but in practice it is extremely difficult to execute
In any project that huge, there will be white elephants like Hambantota Port, insolvent chasers of easy money, hard feelings and so on. The worst parts of BRI are probably its environmental negligence and the fact that it doesn't create local employment; basically Chinese banks fund Chinese companies and host countries are left holding the debt.
I have a personal grudge against it, though: when I was a child and living in Sri Lanka with my family, Hambantota fishing village with its immense beaches and its fantastic government rest house was one of my favorite places in the whole world. Rare jewels like that should never be destroyed.
why you not still live in sri lanka??? don't lie to yourself
Signing contracts is easy, getting your money back is hard.
It is Monopoly money. Theirs.
They don’t have a decent deep blue water navy as América does. So Rails and Ports are where they invest, if they want to increase their number of dots around the world.
Most of their vessels are frigates. Which are suited fo escort oil tankers, large cargo ships. The rails com0liment the ports.
Every landing point they own is a potential military base.
The problem with the plan is the scope got so large and grandious that it is essentially now little more than a series of unrelated and isolated projects that have little chance of ever being meaningfully integrated.
I knew from the beginning that the Belt and Road imitative was going to fail bfor the reasons you mentioned. it was just to big of an idea,
@@TheSonofdetroit ditto for that 130 mile wall that Saudi Arabia is building all the way to the coast.
No. The problem is that China is part of it.
im happy more and more people are coming to this conclusion. the Chinese yuan will not replace the dollar, it is simply too compromised.
It's about the percentages not replacement. As more places get into modernization definitely dollar role will decline.
We in India warned all the countries and now our neighbors are suffering
Lol last time i was in India there was no water purification plant in many places, yet you have space program. Your own people are suffering - warn them.
Our space program pays for itself, it also helped the country in many ways like having our own GPS , weather forecasts, communications etc
With a population of 1.4 billion we are always going to have these problems that doesn’t mean we should stop progress
@@DaweSMF India has the largest population on Earth: how is that possible without drinking water and food, magic?
Even in the 1970s non locals should have drunk only officially bottled water.
Chinese bots spotted
@@deepikamakineni2615 So where is the holdup? You made profit, where are the schools? Water purification plants, roads sewers.. ..
I suspect the goal was never to have the loans repaid, but to intentionally create unpayable debt so as to get cheaper, legally binding access to strategic resources and land. What did China get out of the Sri Lankan loans? Not a penny; but they did gain perpetual ownership of a key port, which they converted into a naval base, and central access to the Indian Ocean. It was never about making money; it was about getting resources and allies. This is all well and good when the good times are rolling, but unfortunately for China, their colossal debt bubble is beginning to burst, and what they desperately need now is money, not raw resources and fairweather friends.
Also, no offense, but please invest in some teeth whitener. It was genuinely hard to sit through all those close-ups with a smile that unsightly.
You are mistaken about the Hambotta port deal. Refinancing and bringing in Chinese management was Sri Lanka's idea and not part of the original deal. The "debt trap" diplomacy idea spread by Western media just doesn't make any sense. No one is going to lend money to and take a share in a project they hope will fail. No one is going to pledge collateral more than the loan is worth. No one is going to stake collateral they will refuse to hand over if the loan defaults and the other party would never accept it as collateral. If "the debt trap" works then Beijing are super Wizards and the rest of the world are stone cold monkeys because they have invented a magic plan to buy the world that no one in the rest of financial history have ever thought of.
Debt bubble? Aren't they worth like $182 trillion?
Damn I didn't notice the teeth until you mentioned it. 😂
Everything you said was spot on. Including the teeth comment. But he is from the UK, none of those people have good teeth.
@@jakedee4117 you don’t even the corrupt people who head these countries do you? Like Rajapakshas of Sri Lanka. They will sell the country for few billion dollars
Does the Cultural Revolution not count as a failure?
Cultural Devolution. Great Leap Backward. Bait and Raid. Sinking islands in SCS. Unlimited Friendship. Take your pick.
nah the ccp dont consider millions of dead chinese as a failure consider they dont value human life ... its only a failure if the ccp lose power over ignorant masses
@@buckwagers Don't forget the One Child policy. That one's biting them hard.
@@buckwagers If China is so bad, why are you so worried about it and come to this fake propoganda for self relief?
@@Llortnerof If China is so bad, why are you so worried about it and come to this fake propoganda for self relief?
China's debt trap became a debt-trap for China's debt goes both ways.
I don't know if it's doomed to bankruptcy, but China will have to reassess some things.
That was the whole point, they where never meant to pay the loans off in the first place.
Is this guy rockin' gold grillz or he needs to see a dentist?
Lool was searching for this comment
China never intended for those loans for those projects to be repaid. They were using their printing press to effectively buy those resources and establish foothold across the region.
To use conventional terms like bankruptcy to describe unconventional warfare tactics shows a complete misunderstanding of the real point behind the belt and road. It is to establish dominance, and dominance is not a shared thing.
XI's dream ends when the US Navy ends his invasion of Twain
I remember when I invaded Twain. Huckleberry Finn was my favorite.
@@damocles8417 😂
"Amen I say to you brothers. Amen" John 6: 47-57
Not with the current joke in the Whitehouse
The thing about Taiwan. China will risk eveything to take it yet it has very little strategic value other than semi conductors and access pass the first island chain. The TSMC factory will be destroyed in the fighting and there is no resources there. So ultimately China gets some better naval bases that is it. That isn’t worth the men that will take it.
If you had purchased long-dated Treasuries in 2019-2020 youd have lost 20-30%
So on a trillion dollars, youd have lost $300B.
Instead of treasuries, China bought investments. In no way has the loss rate reached the duration risk from Treasuries.
The comparison to the earlier history of the US at the end there is also incorrect exactly because it was the US, and they already went through that phase in their economy and have since been moving forward for decades. China could get out of the hole, sure, they're smart enough, as long as some autocrat doesn't go crazy, but that still doesn't mean they'll be the US's equal... The US will still be decades ahead simply because they were early to the party and haven't stopped moving ahead.
Developing nations need to be careful with what projects the code to take on. (At least in modern times) Western Nations & organizations seem to want to support infrastructure projects that improve society (clean water, green energy, passenger transportation networks,...) while China seems to prefer projects for resource extraction and trade links.
Note I said "prefer", both 'sides' do both.
It's unfortunate that France uses the CFA as a form of economic colonism. A system like that when used correctly could help develop nations using the CFA. The issue is it needs to be pegged 1:1 to the Euro and secured to only be used by the countries paying the fees. Right now France can use the fee money on whatever they want without transparency. For example that money could still be managed by France and have requirements on its release, motivating said countries to develop their institutions and human rights to receive guaranteed capital.
@@p3rrin1997 I agree, the way France uses the CFA is problematic.
TLDR News has a good video on the CFA Franc for anyone interested in the topic.
@@matthewshields Its all about staying in power. Every politician will play every trick to stay in power. Western loans does little in that regard. Chinese loan fetches a shiny toy to win next election.
@@dashmeetsingh9679 or for less Democratic regimes, Chinese loans don't factor in human rights concerns.
Western nations are not qualify to say anything good in most of these developing countries, they have exploited them time and time again, not talking of the wars and bombing they bring. China and Russia are better options for the developing world.
I understood that the whole setup is just China building infrastructure so they can easily extract raw materials from these countries, they basically let the country pay for the infrastructure, roads, ports, railways, ... of course the work is done by their own workers, so in case of default the bulk of the money was just China paying Chinese companies to do China's work... and then in exchange for the country not being able to pay back the loan they would get the port and infrastructure to use as they please, of course to use for extracting raw materials and bringing in their own cheap stuff to sell to the locals...
Don't forget that it's a kind of release valve if the US ends up blockading them in a potential war
Their own "cheap stuff" is getting more expensive thanks to labour shortages.
@@lc5176
What other projects of China that the math made senses back in New Tens during the economic bubble and free money from US Fed but not today?
In a perfect world... maybe.
But you assume Chinese infrastructures will be well made / efficient / last long... you assume the locals are going to be fine with all this (not causing any resentment towards China as a whole)... you assume the people currently in power are 'men of their word', that they're going to stay in power... or that their successors are going to be as 'friendly' towards China... you assume foreign powers are not going to play against you (the same way Russia is berating EU/US in Africa for example)
If you lend money, you'd better have the muscles (literally or figuratively) to recover it if needed... if you own many valuable stuffs abroad, you'd better have the means to protect them. I have the feeling all this project could quickly go south for China.
that's the plan.
I expect many other countries taking investment from China to eventually go back on their promises
And this is how wars are started Lol
@@divyanshusingh2145 since when has the threat of war stopped corrupt leaders of africa from screwing people?
There's currently another civil war in Sudan due to people like this.
They would likely ask the US and other countries to help them.
And China does not have Navy to go to the in debt countries and annex them for payments.
@@divyanshusingh2145 Projecting its military power all over the world is not an easy task... especially when the country and its population doesn't want you there.
Russians struggle with a war raging a few kilometers from their borders... they're also in Syria, but protected by Assad's regime, and mostly testing their weapons on civilians.
You learn that kind of 'know how' with experience... and China's military doesn't have any in that regard.
@@artiefakt4402 yes... USA was much smarter... look at the 2 trillion dollar success in Afghanistan.
Dimas Rahardja forgot to swap accounts between comments.. his Chinese masters won't be pleased.
China is like a loan shark..........a lender that will give a loan to someone that a legitimate lender/bank would not. Because the numbers don't line up and a default on the loan is likely.
But China doesn't care about that. In fact, they'd just as soon these poor default on the loan so that they can take over strategic locations or resources of that country.
Plus, most of the money for mega projects goes directly to Chinese companies and employees. But the country STILL owes the loaned amount to the Chinese government.
A scam from the very start.
By your definition ..all houses bought with mortgage in US is a debt trap
Some are, but that depends on loans' interest rates. More often than not, the house value goes up over time. Generally, houses are built near already established economic systems, so they add value to the local economy with residents' consumer spending. Also, the equity goes up over a period of time.
That's why you see so many foreigners store part of their wealth in the USA homes, properties, and time shares. In some cases, the government can seize your land through imminent domain, but you will get fair compensation. Often, the government spends years in litigation just to that.
That is not necessarily true, because a house is useful to the occupants and has an economic case. That is not true for many of these projects, especially when accounting for Chinese build quality, which is abysmal even when it is something crucial like a dam.
@@unconventionalideas5683 US credit cards can be considered as debt traps too, very fit the definition
Does anyone know the music right at the beginning of the video?
The Debt Trap is financing and building uneconomic or marginally economic projects. If these projects have little or no hope of paying off economically, then the investment has been wasted. But wait, it gets worse. The building and management of the projects has been a disaster with suspect quality controls. If a megaproject is defective, the country can argue legitimately that they are not going to pay for something that doesn't work. So China just threw the money away. Easy come, easy go. Oops, economics are important after all.
That's the story spun by the West but they can never come up with a detailed explanation of where it happened or how it exactly works. Why would you loan money for a project that you know will fail ? Why would you deliberately build it badly and then take a share of that project ? None of that makes any sense. If this were true then Washington would be encouraging Beijing to do MORE of these projects because it's just China burning MORE money.
wHY DON'T YOU CHECK WHAT THE AFRICANS ARE REALLY SAYING ABOUT THE CHINESE AND THE WESTERN COUNTRIES. THEY SUPPORT CHINA OVER WESTERN COUNTRIES.
It's almost like throwing money at everything only works when there is a ton of low hanging fruit.
bro teeth look like mini blocks of chedder cheese
Can you do a similar video on USA debt? I’d be curious how it compares to chinas situation. Ik it’s vastly different due to its currency primacy but would be interested in your analysis
Big difference .
You can travel the world and pay in US dollars even in countries that hate the US.
Travel the world paying in Chinese currency and they will look at you like your from Mars then start laughing.
"belt and road" is realy code for "Bait and repossess"
I never know whether a channel that asks for my opinion really wants it, or is just needing more comments to boost their algorithm. This video was an eye-opener, and supported some of my views about China's unending money sources. Now I see a clearer picture of the massive spending just being constant borrowing, but how does this nation have that much in reserves? Apparently this results from tax revenues, land sales, "made in China" sales, and investments (government bonds) by locals, foreign investors, and corporate investors, etc. - all of whom are confident that they will eventually get their funds back along with interest earned. And now it appears that a lot of the external infrastructure 'investments' by China are not going to generate income, or maybe not even a return of capital - which no doubt is great enough to affect global economy. Right?🤗
Every day we have a new problem. It's the new normal. At first we thought it was a crisis, now we know it's a new normal and we have to adapt. 2023 will be a year of severe economic pain all over the nation.. what steps can we take to generate more income during quantitative adjustment?I can't afford my hard-earned $80,000 savings to turn to dust., *#*
Me too. I thought about investing in the financial market, I heard that people make millions if you know the tricks of the trade, but I lack good knowledge and a strategy to outperform the market and generate good yields. I have $160,000 but it's hard to bite the bullet and do it. Money is hard to come by
@sandrabeckham602Exactly how can I get in touch with Sofia Erailda Sema, what are her services, is she verifiable, do you think she can help me, I live in Canada
I just looked up the broker you suggested on Google and I'm incredibly impressed with her credentials,so thank you for sharing. I scheduled a phone call with her.
buy gold, which is not an investment but currency insurance.
By the way, the above comments are bots luring idiots into a scam.
Was the [Name of Host] placeholder left in the subtitles intentionally? :'D
Been watching this channel for a while and this content is the bees knees. But bro you make enough to get a teeth whitening .
why are his teeth glowing yellow? 😱
Idk, but I'll brush mine rn
He's clearly a chain smoker and unaware that there are smokers tooth pastes on the market. Damn distracting
@@glynbayliss5470 it really was distracting. bro should do something about it, he is a talking head, taking care of himself is part of his job.
Still cheaper than warfare
wuuMMAAOOOO
Everytime he says poor is it me or does it sound like purrrrr 😂😂😂
I don’t think this marks the end of the program, although I do believe it will undergo a significant overhaul that will lead to much more stringent economic assessment criteria to better prove a prospective project’s economic worth, from both the lending and borrowing sides.
It will certainly be interesting to see if, as the part at the end hints at, the program morphs itself into something that resembles what the USA did way back.
yes... USA was much smarter... look at the 2 trillion dollar success in Afghanistan
This better not be Chinese propaganda, I'm sick of the BS
Go watch global times instead
1) Wasn‘t one of the major reasons for China’s BRI was that China *knew* these countries would default, and China would then take their country‘s resources and strategic locations? (Of course, that was years ago, when we and China thought China had money…)
2) The BRI is also an extension of CCP’s obsession with tofu dreg infrastructure projects, except that the BRI tofu dregs are exported, and the CCP “loans” money to these countries. But, like domestic tofu dregs, Chinese businesses, Chinese workers, the Chinese GDP, and Chinese kickbacks, are the ones receiving the money. (Okay, corrupt local officials of loanee countries get their share, too.)
It's basically just an attempt for China to keep their people working and for some politicians to gain from kickbacks and bribes. These self proclaimed "experts" are taking their so called "expertise" to these poor countries because people in these poor countries don't know any better. Those standards would never work in the developed world and they know it.
That's the story spun by the West but they can never come up with a detailed explanation of where it happened or how it exactly works. Why would you loan money for a project that you know will fail ? Why would you deliberately build it badly and then take a share of that project ? None of that makes any sense.
to take those resources or to use it as strategic locations, CCP will have to send military forces all over the world and keep them there.
Yes... That WAS the previous narrative but now there isn't sufficient evidence to substantiate the theory, it's been changed to "China is stupid! Haha!"
Except China never took a property in exchange of debt, if you say Hambantota port of Sri lanka, go back and do a better reearch. They did forgive debts thoughor renegotiate all those delinquent payments. Just late last year they forgave 23 loans from 17 african nations and they were even NON-INTEREST LOANS, imagine that.
The instant I saw that shirt, I knew this channel has nothing whatsoever to offer.
What is the song at 9:14? Love it
The most british teeth i have ever seen
Belt and Road means --> tighten your belt and hit the road jack !
Dude $100 billion US wipes its ass and flushes that down the toilet in a month
Your shows are all superb
I like the conclusion: the competition between China and the West to provide infrastructure to developing nations will likely be good for the developing nations. These countries need infrastructure more than they need ideological purity. If big nations want to compete to provide that infrastructure, all the better!
It would be good for the developing nations of the investments were an opportunity for local companies and local workers to help construct the infrastructure. Instead, the Chinese have used exclusively Chinese companies and workers to build and in essence just funneled back the money to China, minus the bribes for the dictators.
Yes and no. Yes for the infrastructure they build that works. However there have been many projects they built that either dont work or are the verge of breaking like the dam they recently built.
Yeah but china builds those infrastructure projects but prevents local governments and people from benefiting from them
All that infrastructure doesn't mean anything when you have a corrupt government whose policies are keeping investors from pouring their money into a country. China has a ton of infrastructure. Just look at all the apartments they have built? What about all the ghost cities that stand empty? Are those places booming economically? Of course not. So infrastructure isn't the be all and end all of everything. It has to be coupled with things such as demand for example, which China obviously fails to take into consideration.
Deep yellow silk roads in his mouth
Interesting , Thank You .
For those who might not be aware of the term spanner it is a British term for a wrench. I know because I grew up in England and used to help my father on construction projects a bit as a kid
I remember reading "Confessions of an Economic Hitman". The tactics haven't changed, just the names. The IMF and World Bank played a similar role. However, the Chinese do offer more value per dollar/yuan. So, there's competition at least, which allows debtors to bargain somewhat with the terms of their indentured servitude.
It is America that is heading for a catastrophic bankruptcy, because so far America's economic strength has come from countries that have been robbed of their economic power through dollars which are immediately printed massively when America runs out of money, now many countries in the world have realized that as long as This is deceived by the American dollar, whose real value is only the price of a piece of toilet paper, if you don't believe it, exchange all the dollar bills circulating in other countries to America for gold, silver and other valuables, mining oil, gas, uranium, gold, it won't even be enough If all the planes, tanks, cars, ships, American state-owned buildings in America are used as exchanges for the dollars that have been printed, it will not be enough to cover the value of the dollars that have been printed, so as long as there are countries and companies that are stupid, they still want to be paid in dollars. America, the country and the businessmen will be used as hosts by parasites of the American economy to support the American economy, which is actually far worse off than the Sri Lankan economy a million times.
Well, I remember reading that book. It definitely highlights how geopolitics have an economic motive. However, it stated that Iraq War was started for its resources (just not oil but the Two Rivers). However, Iraq has always been in economic turmoil even during the height of Saddam's reign especially when they have very limited maritime routes compared to its rivals.
In other words, I think it has the right premise but does not precisely nail the details correctly
@@hansonlee5847 The Bush administration saw its resources as a way to repay the cost of occupation and nation building. It never was cost neutral, but the rationale continued on to Libya. The resource help rationalize and sell the war to self interested economic actors, defense contractors and ex government bureaucrats who sit on their corporate boards. This isn't so far off from ancient generals promising their followers the spoils of war. His premise was correct. He was soldier, an economic hitman, in the larger campaign for global hegemony.
The World Bank nor the IMF have seized strategic resources of any country. The World has benefited a whole lot by the two institutions.
Folks, business is business. The difference is IMF is much more transparent. For China to succeed with this project, all countries involved must be authoritarian. It will operate much like the African Franc network.
The whole thing is a big HUGE failure. Pooh needs a no man.
yes... USA was much smarter... look at the 2 trillion dollar success in Afghanistan.
I couldn't even concentrate all I was thinking of while watching was "oh my God look at this dudes teeth"
A man surnamed Zhang, who designs furniture, said infrastructure continues to collapse because there is no way to police the government.
"China's civil society is not strong enough," Zhang said over Pepsis at a local KFC. "It's too fragmented and too weak and can't force the party to make changes."
When China began Belt and Road years ago, no one seems to have noticed that the US and other western countries had always had the "opportunity" to finance infrastructure projects in Africa but decline to do so.
Why? Because western banks knew that they would never get paid back. These projects weren't even risky, they were pie in the sky. So China stepped into the breach and, to the surprise of no one with any sense, they have all failed miserably.
I'm not sure that Belt and Road will be anything but a black eye for China moving forward. Saddling third world countries with debt that they can never pay back for projects that will never generate any revenue doesn't seem like a good way to begin a relationship. Not only that, but China has become notorious for building things that don't work and crumble soon after completion. They are known for building things fast, but that comes at a cost. It's not like the Chinese companies who build these things are discriminating against foreigners. Their own internal infrastructure is also crumbling.
Who told you that ???
Western Mainstream media😂😂😂
If the chinese belt and road initiative projects are really falling as you've just said, why would the G7 lead by the Us offer an alternative project also known as build back better.
China collaspe theory has been around since the early 1990s you know😅😅😅
@@akirayagami4226 the fact that China is having a serious debt crisis at home, coupled with the fact they are having to bailout corrupt governments that are pocketing large portions of the money. Only a trickle of the funds reach average people to create a permanent infrastructure. When you have to spend & you don't have spare yuan, it's not good.
Also having been around in the 90s I never heard anyone talk of "China collapse" then. It was all "China rising" or "China wakes".
It has bought many guaranteed votes for China in that great non-democracy the UN General Assembly (and various UN bodies) allowing China a lot of influence in the UN and therefore globally that would have been more difficult to obtain otherwise. So on that basis alone it could almost be said it was worth it. Throw in access to and influence in the markets and governments in those countries and it becomes more valuable still. Even before one yuan has been paid back Chinese plans for global influence are paying off. Add in the fact that the loans are generally secured and the net benefit will probably still be positive in the minds of the Chinese even if the money is not always paid back provided the Chinese are able to maintain good relations and influence after a default.
The West of course did not need to buy this global reach as China has done and so would not have been prepared to provide such dodgy loans to do it. Now that China’s strategy is clearer the West is starting to play the same game but are playing catchup. Their level of success will depend on how China handles the defaults. The countries involved will no doubt play one side against the other to extract more easy capital and corrupt payments.
@@akirayagami4226 yes... USA was much smarter... look at the 2 trillion dollar success in Afghanistan.
Episode 976589 of "China is totally gonna for realzies collapse THIS time guys you gotta believe me". Jesus tap dancing Christ this is getting old.
I like the enthusiasm 😊
I hope so. You didn't mention the Cost of Labour had increased 11 fold and companies are leaving in droves to cheaper areas such as India. Cambodia.
Belt and Road = Bait and Rob
way better than Russian's way of expansion.
Famously, the USA never invaded and pillaged other countries resources using their army.
@@zollen123 yes... USA was much smarter... look at the 2 trillion dollar success in Afghanistan.
@@johnsmith-cw3wo USA didn't annex Afghanistan.
Command economies/political systems can get things done quickly but often cause many unforeseen catastrophes like “The Great Leap Forward, The One Child Policy, the Covid response and now the Belt and Road Initiative. Governments should be in the background and allow private enterprise to take the initiative.
Private enterprise does not build a decent power grid or sewage system for the population. In fact, private enterprise doesn't want to be responsible for any of the municipal concerns that make a place livable or the education that gives them the educated work force needed for the higher levels of a company. Private enterprise wants to reap the benefits others have created to profit now.
Both are needed, in enough strength to balance the other.
OTOH, regardless of the result in the next few years, China's growth post-Nixon is impressive.
@@recoil53 China’s rise coincided with a liberalization of their economy. Unfortunately they are still a one party dictatorship. Capitalism with a representative democracy is why people are lifted out of poverty. Capitalist societies don’t “command” disastrous social policies like dictatorships do.
@@zoltonthemagnificent88 Oh, there are easy ways around that. Its one of the side effects of propadanda.
People really aren't good at examining what caused problems, they just feel there is a problem and vote against the majority party.
I will also point out UK's decade plus slide
When countries such as Brazil, Malaysia, and Argentina all use RMB for settlement in the near future, it is enough to prove that the Belt and Road Initiative is a successful strategy.
If the political outcome was the goal, then yes, it was a success. But if financial returns were the goal, then it is a failure on a massive scale.
Brazilians always take US dollars. Not Renmibi.
Can anyone think of a large scale infrastructural project like a port , airport, bridge, rail, highway, hospital, university ,dam, factory , et , built by the US foreign aid to underdeveloped countries?
None. But we SEE over 24 wars and MILLIONS of casualties.
Wait what do you mean first mistake. What do you call covid? A major success?
Yes. COVID was a Huge success. The experimental release from the research lab ruined the World economy for 2 years.
Are you alright my dude? Your teeth aren't supposed to be green.
Constantly arguing with my Chinese wife over the real estate bubble. We have a 1 bed apartment in the centre of Guangzhou, but we're currently expecting our first child this year so she wants to upgrade to a 3 bedroom apartment which currently go for around $1mil in our area yet we could rent a similar apartment for $2k per month... she's adamant the prices wont drop
*Those teeth* ... 🤢
_(I simply cannot unsee them... Sorry, I'm outa here)_
The IMF is bailing it out. No worries.
Imf is controlled by the west, soooo
Anyone who has followed Chinese policy, knows that its a long game strategy.
While I am not a fan of dictatorships, I am sure that thr Chinese rulers took into consideration debt defaults and problems when they started rolling out the New Silk Road.
Why does it look like he recorded this at normal speed and sped it up to 1.25x? If you slow it down to 0.75x he sounds normal
Gambling most of the time is when you make poor and uncalculated decisions, so how is investing in infrastructure considered gambling?
It's way better than printing money for war, which seems way bigger "gambling", because the former is good for everyday people, while the latter surely not..
What happens when they smaller countries can't pay China back
Depends on your intentions. The problem is that China developed these infrastructure projects primarily to drive growth, rather than letting growth drive infrastructure projects. Many of these investments have faced massive cost overruns, corruption, or are years behind schedule or, if they’re completed, many (particularly when it comes to domestic infrastructure) have turned out to be deeply unprofitable. For example, building billions of dollars worth of high speed rail lines creates a construction and employment boom that is great for the economy, but what happens when the completed lines actually have ridership well below what was estimated and thus these projects lose money year after year. Infrastructure is great if it’s used, but if its not it becomes a burden and over time is likely to be shut down. That’s not at all a driver of growth longterm
@@danielfirestine9414 We can ask the same about the IMF, the International Mafia Fund.
Financial responsibility is the answer for your question. If you play stupid games, you win stupid prizes, it doesn't matter if the other side is China or the IMF.
Investment in infrastructure is not wrong per se. But as soon as the infrastructure is built, you have to service maintenance costs, interest payments, and paying down debt. That works if the infrastructure is sufficiently used and stimulates other growth. But if you overdo it, the overbuilt infrastructure will bancrupt you.
@@Ningen18 and why didnt the U.S. do business with the countries China decided to do business with? this video just explained that a lot of the countries in the B & R project are dictatorships. governments that will lie to accomplish there goals and other unsavory practices that ultimately demean economic stabalization. im not not saying the U.S. is perfect but there is a reason we are still on top. if our government looks at a country, honestly, and all indicators point to investment being futile because a government cant function properly, then investment doesnt happen. not liking the U.S. doesnt defeat us. it actually doesnt change anything.
Yes.
China silk road turned out to be a joke.
Be carefull with what you wish for, you might get that but with a hefty catch...
Love you video guy but iv got to say, you need to stop smoking dude and that's coming from a smoker haha. 😅
fr, how can it get so bad? this is a fucking stop smoking/see a dentist ASAP ad
I remember that China’s economy collapsed last year according to many media.
Precisely.
as a developing country , any developing country can watch china and learn from china's mistakes ...." bribery wont earn loyalty "
Why does America want to defend Tiawan? Because America saw what the CCP did to Hong Kong a vibrant metropolis that was free and built China what she is today. Now oppressed Hong Kong is not what she used to be. We see it plain as daylight. We must protect the democracy that is in Tiawan and we will. We will be one.
GREAT SHOW AND GREAT COMMENTARY, MATE!
Here we go again, a new Cold War.
U forgot to add that this year they nad write off huge amount of belt &road initiative on Russia! Like a $100 bil
Does VisualPolitik provide dental insurance?
I think the "proof is in the pudding" as it were. China has been building its own infrastructure for over a decade now (42% of its GDP since at least 2011). But now that it is all built, it is not being used. Multi-million dollar airports unused; empty trains; and enough vacant apartments to house the entire population of France.
As was insinuated in the video, China is paralleling what the US did after WWII, the difference being the US had, and still has, an internal economy (68.5% of GDP is household consumption) which receives goods from the smaller countries and can afford to lend money for bailouts when needed. China has an external economy (households consumption is 39% GDP), and it seems Xi expects the smaller countries to take his products and supply him with resources. If the Chinese cannot afford to use the infrastructure Xi is building themselves, how can he expect the poorer countries to take up the slack? So I think the answer to the question in the video title is: yes, China's 'silk road' initiative is doomed.
P00Xi's head is too big for his crown.
China reminds me of someone that won the lottery and really wasn't used to managing money. China has been spending money like there is no tomorrow. Loads going out but very very little coming in. China really needs help to sustain their country now.
SERIOUSLY? THE US OWES CHINA A TRILLION OR TWO.
对于一个国家来说，有钱不花出去就是蠢
Please!
Get yourself a Toothbrush.
Makes you feel less bad about the China & Russian made famine about to hit Africa
They will "inform" Africa that it is all the fault of Ukraine, NATO and America.
Africa has million of farmer Land.
@@aghileshemdani3144 Which need fertilizers from China & Russia that are no longer being exported.
@@aghileshemdani3144 fine... Then the rest of the world doesn't have to care for the hungry people in Africa.