Over the top protectionism? EU increased tax on non-EU imports from internet shops. Now even a few cent products will be taxed (before under 22€ was tax free, no need to enforce procedures regarding paying the tax).
Can you provide a little more info about the 'up to' $70 in free stock and fund with 'as little' as $1 I couldn't find and detailed info on the link. Thanks :)
It is. Value is created by speculation on future profits. The entire economic system is built on having endless growth on a planet with finite resources.
@@bee5440 Governments coercing big corpos to do their bidding, giving them free money while legislating their small competition out of the market is somehow capitalism's fault.
@@colatf2 Yup. Lebanon continues to hustle for those infamous records. Top 5 largest explosions, top 5 most expensive telecom, top 5 hardest economic collapse... stuff like that. Right now we have electricity about 2 hours every day. Fuel shortages mean people are queueing up for 3+ hours to refuel their cars, if they're lucky. Hospitals are short on essential supplies, like vaccines for children. Fuel & electricity crisis means some medical centers are having to shut their doors and ditch patients that will die without respirators or life support. On and on.
That sounds horrible. Heard a little bit about it after that awful port explosion. Hope things get better for you. Most of what I know about Lebanon is from being keen on archaeology and pre-history.
Yes, no, kinda. June ‘21 monthly stats were total exports $41B ($19B from China), imports $28B ($7B from China) and a $13B monthly surplus. China goes we’re bugged short term but it won’t be the end of the economy. We’re taking steps to diversify as quickly as we can and leave the ball in their court. Terms are now cash and carry…
@@rreinehr1 What percentage of total exports per year goes to China? About 36% according the last full year stat I can find. That's not even taking into account the Services Industry. How much Chinese money is invested in services e.g. Chinese students at Australian Universities, Tourism, Banking, Insurance??? If China tanks it's taking Australia with it.
I am shocked that how accurate you were , every details from social to politics to economy now has turned out to be correct in hindsight. I was already subbed but now i will watch your videos regularly. ❤
@@joneywins Evergrande is China's second-largest real estate developer and it's drowning in debt. If it doesn't pay its obligations within this month it could go bankrupt. Most problably take a lot of other real estate developers with them. Millions of Chinese would loose their investment. It would make any other economic depression look like a stroll in comparison.
Yep. Well said. I live in China. Old people are essentially extremely low paid workers who work very hard. I doubt the younger generation would take on those roles
I’ve visited China a few times, the wealth equality is so extreme from an outside perspective. The poorer families or middle class is limited to 1 child while paying rent. On the other hand rich families with government connections have 3 or more children driving BMW.
@@brianyang5075 There's is no one child policy anymore in China.. Furthermore 1 child policy only applied to Han Chinese, there are 56 ethnicity groups in China, many people from rural area's often had 2 or 3 children and they weren't rich or driving BMW's. You think paying rent is weird? Do people live for free in other nations? Looking at your name, you seem to be Chinese... How come you know nothing about China? One thing I dislike most is when Chinese spread fake news about China...
Great video! Actually published before Property problems in China, especially Evergrande. One child policy that was implemented in China for decades now heavily burdens China as well. If you don’t get married and your parents are old, you need to support 3 people in Asian culture (yourself and 2 parents). If you get married and have a child, then 2 adults have to support up to 7 people (the 2 adult themselves, a child, 2 parents and 2 inlaws). That’s a huge drain of time and resources!
I have a question about the on child policy that would require too much research.. Do you know if the population of China has decreased in the last decade? As people have died and only one child from each set of parents get to live.
@@dagfinissocool I Believe that is a problem but also the male/female ratio as the last time I heard it was like 8/1 I only heard this so some research is required
@@JohnJohn-bf7lh I just checked my own country and the population hasn't even close to doubled in the last 40 years. I feel like China has been lying to us..
@@albertohernandez3487 That ratio is only in the major industrial cities like Beijing and Shanghai, or maybe Guangdong. Its because more males leave home to work in the major cities than females. The actual ratio for the country is more like 51:49, but that 2% swing represents 37 million more males than females.
Lying flat is not being lazy though. The main idea is more like minimalist for life: the society sucks, I'm just gonna hang in there, but nothing more. Some people are putting more effort into Lying flat. One guy (the same guy who really popularized the idea of Lying flat) developed a system to nurture Chlorella in water as his food source, and claims that "I will never starve as long as there's sunlight". What did he do? He calculated that the nutrition (excluding sugar) to sustain one human for 1 day needs to come from one 2L bottle of Chlorella, which takes 4 days to nurture. In order to keep up with consumption, you need to nurture more than 4 bottles simultaneously (he was gonna prepare 8). Problem is, by the time when you have consumed the first 4 bottles, other bacteria in the water have also reproduced to the point that the Chlorella water is not potable in the other bottles despite the fact that he has preemptively disinfected the chlorella. Therefore, you need to speed up the production. By his calculation, every bottle needs to receive at least 20hr of sunlight per day. So he installed: 1x 50W LED fill light, 1x smart switch with programmable timer, 4m^2 of reflective plastic film, 1x aeration fan, 1x aquarium air pump, 1x thermometer. All these allow him to lie flat. Here's a video: th-cam.com/video/IEr93xVuZsQ/w-d-xo.html
I always thought that was stupid. Outsourcing jobs are done mainly because companies hate creating a safe work environemnt domestically, so they use sweatshops for the cheap labor and unregulated conditions. Disregarding the morality of it all, we basically gave our economic independence away. We rely on these products coming overseas to the point the domestic industry collapsed and will never be able to remotely compete.
@@zacksmith5963 the Chinese government has said they won't bail them out looks like they are gonna collapse before the Gov will do anything to improve the situation cause Evergrande executives played their political cards poorly and the CCP disapprove of them lately
There’s a time in every economic boom when it seems like it will go on forever. People with easy money in their pockets assume the boom will be permanent, because they’d like it to be so. Historically, it’s always around this time, when the economic bubble seems to be an unstoppable force, that it suddenly bursts, taking the dreams of its investors with it.
@@TEverettReynolds The US housing bubble burst in 2008 leading to the Great Recession. Congress and the Federal Reserve bailed us out preventing it from being a depression.
@@TEverettReynolds The difference is that USA did nothing to prevent or postpone the collapse and were caught flatfooted, the CCP know that their economy could implode for about a dozen reasons and they do anything to prevent that. China might be able to hold on for several decades and then face a even worse collapse. Another problem is that they focus more on keeping their growth than improving the lives of their citizens, which leads to increasing frustration in the population, which in turn causes the CCP to tighten their grip. China will become even worse long before it suffers any real setback.
It'll be pretty interesting to see what happens when leases come to end of their life.. given you hold the time remaining on a long-term lease, as opposed to title, isn't it an inherently depreciating asset, unlike usual land investments?
The assumption is that the CCP will have to renew at least a majority of leases, or the economy will collapse as so much money is tied, directly or indirectly, to the real estate market. Or that's what a rational government would do. With the CCP, we'll have to wait and see
@@talltroll7092 yeah, and it's likely a safe assumption. Wonder if there'll be a redistribution in some way, like change certain residential into commerical/industrial/etc to counter the ghost cities. It's just interesting to remove the "almost sovereignty" in the form of title, from a real estate asset.
That remains to be seen. I think China will power through this one like it always has. Government will bail out the financial institutions and continue pouring money into infrastructure and public projects. Once time comes to pay the piper, Chinese authorities will just remind us that capitalism is a construct and the final word in all matters is the Chinese state. That's why I think China's authoritarian retrenchment over the past few years is partly due to its structural concerns--they're preparing for any number of future calamities that are easy enough to see coming.
“If someone spent his entire time wishing you ill, hoping you would fail, and shorting your stock, when he makes a pronouncement or assessment, assess something, makes a judgement about your present, your future, it’s probably a fair bet that the opposite is true.” ----- Eric Xun Li
@J Kairos Actually, they're really quite amazing. They have really good engineers and automation that allows them to see a lot of data that helps them predict the future of where industries are moving. This year they will be able to increase their GDP by almost 3.5 trillion, which means they are essentially adding an entire Germany GDP of income to their pockets. I work with manufacturers quite closely and with information platforms in Asia, they're not the only ones looking at the future. They are in the space ahead and able to jump ahead, like how America created credit cards, but China decided to go almost all digital. They are leap frogging the technology. People have been looking for the downfall of China for over 40 years, so I wouldn't be waiting anytime soon, China will probably grow long after we've all passed away.
@J Kairos you are absolutely right about the education reforms... I remember when china was all about economy. That was the only thing people cared in china and still do (money and family). But the thing that happened with the education absolutely destroyed a huge part of the education industry (private education). Many private centers declared bankruptcy and closed down. Thousands and thousands of people lost their jobs (I mean Chinese people) overnight and the government will lose a lot of money it would make taxing. So now all of a sudden ccp doesn't care about money? Ccp doesn't care people lost their job? I know why they say the policy is in place but there must be something else that they are not telling...
@J Kairos I was born in Hangzhou in 1996, absolutely amazing transformation of living standard under Chinese government! I travel back and forth between Hangzhou and Toronto, Toronto is no better in terms of infrastructure. Any statement that tries to slander China's economic achievement is garbage, I witnessed it, I felt it, it's very real!
@@zkh173 he didn’t slander your countries economic achievements he said your government is full of sick and twisted individuals willing to do anything it takes to achieve world domination, and with you being a Chinese citizen that gets to leave I hope you understand that there is no dispute for that. You will never have the same freedoms in China that you have anywhere else if the status quo is maintained
4:01 - Real Estate in China 5:39 - Speculative Asset Vs. Place to Live 11:44 - Land Lease/Rent 13:58, 14:04 - Work 14:24 - LyingFlat Protest 14:55 - Debt 15:00 - Household Debt *15:10**, **15:21** - Debt to buy Appartment* 15:41 - Govt. Help
“Lying Flat” would also be a good descriptor for the trustworthiness of the quality of those high rise apartments, both structurally and as investment securities.
@@Kushagra.j except the U.S. is likely going to blow first. Then China. All these capitalist countries are built on houses of cards for us, and another world for them.
And here goes the doomer mentality of incoming china collapse again How many times is this? 6? 7? Maybe let china collapse for once before drumming and celebrating
As a brazilian, i love your accent. Feels way more comfortable to my ears than "the more used" english ;) Nice and very informative video, congrats from a new subscriber.
@@kenban8533 That's like all the people predicting the world will end. Eventually one will be right and he can call himself the messiah. Here I'll make a prediction myself. "China will collapse 1 million years from now."
@@ritwikreddy5670 That is not completely fair, if you get the mechanism of the collapse correct. you can't put a time on these things, mostly because simply making the prediction effects the outcome. People screaming about how the government is going to take are freedoms and it will be like 1984 in large part are the reason they have been wrong (well up till now), they themselves were resisting the change and falsifying their own predictions.
When two fishes in the pond are fighting an Englishman must have passed by When fishes in the pond are armed an American must have passed by When fishes in the pond have disappeared a Chinese must have passed by
@@dawudsandstorm7852 the fishes would have red books beside them while spouting how the tyrant bourgeoisie is taking the liberties and hard earned effort of the gentle laborer
Back in the '80s when everyone thought the Soviet Union was unstoppable their GDP growth was off the chart. They got that growth through government subsidized infrastructure military and rail projects. It got so bad that there used to be a train that ran in circles around Moscow full of cardboard and was never offloaded. All to meet a government quota that on paper looked as though the real volumes were off the chart but in reality it was wasted resources. That is exactly like what is going on in China currently and the Miss allocation of resources to make paper growth.
@@Krasnoye158 Ya I do admit some parts of capitalism has this issues. Food produce being wasted and bleached (to prevent homeless people from taking it) and amazon destroying their inventory in order to maintain the supply side of supply and demand.
Do note, some products, like raw milk, are dumped because it turns rotten/bad if nobody can process or store it. The places with pasteurizers and fridges aren't able to just run and donate 24/7 without bankruptcy on the horizon rn with our setup.
@@Krasnoye158 That's what happens when monopolies take over and there is only one supplier. In a normal functioning economy with open and free market competition that would never happen.
Hukou is just Mandarin for household registration; imo it'd be easier to understand if you just say that China ties governmental services to the registration instead of actual residency and disallows people from moving their household registration.
@@timothydee1507 that’s exactly what it is and it helps limit the freedom of movement especially considering that it was one of the first long term policies that were implemented by the communists it’s just that the Hukou system stuck around unlike other polices such as killing all the birds…
The problem of “laying flat” is all too familiar to me, and I’m not even Chinese. When wages don’t increase but costs of living do month after month, its hard to muster motivation to work. My question is what can be done about this.
Remove the shitty govt regulations. Listen I hate trump, but there is no denying the economy grew. Every bracket of the economical ladder saw an increase. And all he really did was slash back govt restrictions. Which Biden reinstated as it was an executive order (which I detest any president using them.)
I am providing a solution that had visible effects. Not saying it would work for your nation. Economics is a complex beasts. Consider it a nugget to research and mull on and reach your own conclusion should you be so inclined to do so.
@WorldFlex the ending should tell you all you need about this channel, it's not interested in economics but fear mongering in order to get clicks, "who will they blame when you only have 1 party" while an American flag is in the background, not only implying "this can never happen in the west as you have 1 side blaming the other until we vote" but is also making an ominous remark how China will enter into a possible war with the US over its own economic hardships. Pure fear mongering!
I just watched this video a month Ago when it was available. This week Evergrande crisis pops up in the global economic scenario!! Definitely good quality of information and analysis in your videos!! Highly underrated!!! Keep it up, can't wait to watch your next video.
Moreover, they had 30years to get property as there were no property for 50 years if not a 109years. That property rights are someting very real jow but was not before
Hats off to your excellent presentation and extensive research. Clear, comprehensive, to the point, no misunderstanding at all. It’s even a tough job trying to explain so many interrelated things to Chinese people who have some knowledge in the economy. As a Chinese Australian who has done many years of research into the Chinese economy and first hand experience in living in the big cities, I say you remind me of the best economic lectures given by top economists I attended.
Funny reading this after reading other comments showing that he's not only completely wrong on this video but has an extensive history of bad economics and making up bad conclusions lol
Definitely true, one of my former coworkers divorced her husband so they can buy another apartment. They still lived together, traveled together and raised their kids together.
There was hope few years back, but now every chinese have a red book to learn from school called "Xi Jinping 's thought". Fail to know the red book, you fail exam. Oh and if you dont know it well enough in corporate world, well you can kiss your career goodbye as you gifted your colleague your well derserved promotion. History repeats. Especially in a country where history is either forgotten, rewritten or censured.
Well, I grew up in China. There was a time back in 90s and 2000s when China was headed in the right direction, slowly becoming more open, free and even tip toes in a bit of democratic reform at a very low level. But then Xi came to power, and he started to reverse all that -- more central authoritarianism, less personal freedom, more censorship, propaganda, antiwestern nationalism, clamp down on businesses...it's getting worse and increasing feellike Mao's cultural revolution 2.0.
I lived and worked in China. When we lived there we were able to travel all around and to places where foreign tourists don't go. First let me say that so many Chinese we met and knew were great. There are also many beautiful places that we visited. On the other hand outside of Shanghai, Beijing, Shenzhen, Guangzhou and other higher tier cities, the majority of Chinese people live in third world conditions and struggle to survive.
I wonder how this compares to the US. NYC, LA and a couple other major cities are certainly first world; but after driving across the country a couple times I’ve noticed “flyover country” is not.
If you think majority of Chinese people live in third world condition, then you never see how third world conditions look like. Have you been to SEA, India, Middle East, and Africa, even many places in east Europe. Some of these places will renew your definition of "poor" and "third world", maybe you can define them as fourth world, who knows. Just look at the countries that are on the Global Hunger Index list. Over 100 countries that are even worst than China.
Hmmm, if the Chinese economy were to collapse, it would be very bad for my state in Aus which is heavily reliant on selling resources to China. By the same token, it would be interesting to see the % of Chinese nationals who are investing in Real Estate overseas, to avoid the bubble at home and I guess Chinese laws on Real Estate investment.
Australia should diversify their economy and export and should start looking for new emerging markets like India, Mexico, Vietnam, Brazil, South Africa etc..
I've been watching documentaries saying how precarious the economy of China is, how bad the choice they made are, how it will backfire and hurt the world economy for at least 20 years. 20 years later, they are still catching up on developped countries. I can't believe the irony in the fact that developped countries keep bashing China, and are still not even close to do what they are doing in term of economic growth and social improvements. Western societies are basically stuck in statu quo arguing on bs like "is a mask really effective", while the only care of their governement is to get reelected..
@@pascalladal8125 previously due to there are new investment filling the game it is like a ponzi scheme.....when there are new comers, the scheme can still works. Most importantly, it is China government want to "kill" the rich tech giants for it's own gain via communism tricks that scares investors.
@@DavidSmith-nx3zw to be fair whilst China is only seconded by the US as to how shut capitalism uses GDP, they have taken the most amount of people out of poverty. If we took China out of the total there would be a % increase in poverty
@@MikeSpike117 They took people out of poverty by lowering the threshold of what being "in poverty" mean. It's like moving "being fat" from 90kg to 120 kg. That's how they beat poverty.
Interest in those theft, always accusing others of stealing like all the Americans always blames everyone else, but itself. a nation failed 365 degrees around, but the only resource is pointing the filthy finger to China as a scapegoat.
SUGGESTION - You flash graphs and data up and gone so quickly that the eye cannot get a faint idea of the content. Since most pics are meaningless background/theme shots, I suggest you more than quadruple the time you display numbers, graphs, data etc.
@@8Scientist that’s why he said it’s a suggestion, There are always ways to make good use of a bad product, nothing wrong with giving a suggestion to improve.
There is most definitely a regression going on in China. I lived there for a decade 2004-2015, and started feeling it from around 2012. Started with all the arrests of foreigners in Beijing in the bar districts about 2011, then about 2014 over the Day Islands off Taiwan (I even went to a brainwashing session with the school I was teaching at! And also got caught up in a heavy protest/ riot in the middle of Tiyu Xilu in Guangzhou). And now they have shut all online schools providing English classes for students, so no foreign 'influence' anymore- this has happened very quickly. Something big is coming....
@@Krasses It's getting more and more complicated for foreigners. Bit by bit. I know a lot of people who left, who are planning to leaving and some who since the pandemic can't come back even though their life is all here. But the most annoying is when you are running a WOFE (Wholly Foreign Owned Business) here in China, you have lots of issues, inspections, anonymous complaints especially if you are successful. Outragious enough: your local competitors can be non compliant but they face no issues. Last thing to notice: there are incentives, wording, speeches... to push Chinese to buy Chinese products not foreign brands with the underlying idea that foreign brands are bad and harmful (hilarious).
All profiles in this thread have been around for a while and you are the only one making bold claims, after checking their profiles and reading their comments on multiple videos I see no pattern and agenda.
As a real estate Professional myself nothing scares me more than that term “expectation of future growth” commercial real estate especially is over leveraged to the point where a collapse is inevitable. You can’t take a $1mil office building and pay $1.5mil because you think in 10 years it’ll be worth $2mil. Commercial real estate isn’t like residential. When you buy an income producing property there’s an expectation of continued income stream. So instead of overpaying on a house “because it’s what you want” you’re overpaying on something that doesn’t make you any money. And there’s not justifying it other than you HOPE that the growth continues.
The problem with commercial real estate valuation comes from the fact that 5gere is more KYC due dilligence in a 100k retail brokerage account than there is in a $100mm commercial real eatate transaction.
This is why you work in real estate and not as an economist. The world has printed trillions of dollars during the pandemic. What do you think that does to real estate prices? The building is not worth MORE - the currency is simply worth LESS.
@@gooel The Us government has been printing money and giving it out to people as "free" and now they are gonna pay the price. Also, many of these people for the last year or so have been living basically rent free, when the tenants eventually get booted off, many of them will likely thrash the place as a form of retaliation, and many of these landlords will just sell their properties and dust their hands off, while making some good money, and that will be the last chance to get a house at an affordable price. Then prices will increase and basically never go back down again until they stabilize again. Hope the "free money" was worth the years of probable stagflation we are gonna get. And the average dude is just gonna tell how this was a "failure of capitalism" what a load of bs, these people don't even understand the most basic things about economics. Why is college expensive? Is it a failure of capitalism? Or is it because the government mandates that everyone gets a shot at it if they want even if they normally would not meet the standards? Why do you think they keep lowering the standards for getting into college? That along with the fact that they basically nationalized the student loan industry, and they wonder why college is expensive, failures of capitalism. Or healthcare being expensive for pretty similar reasons, basically obamacare, the government mandates that you cannot turn anyone down for insurance, so who do you think has to pay for people who cannot? And if you cannot turn anyone down, that also directly results into people caring less about their own health and trying to stay in shape, because if they cannot turn you down, why even bother trying? So is it a failure of capitalism? Or simply the government mandating things thinking that they will make things better, while in reality they make everything worse? In the end capitalism is simply competition, to embrace equality is to embrace failure, because to have equality you must bring people who are above you down to your level, and when you do that, you ruin your economy, because no competition means stagnation, you wonder why the rich is getting richer, but you never stopped to think, is my standard of living lower than someone from the fifties or sixties? Because i assure you it is not. Because while it is true that the rich is getting richer, the poor is also getting richer. And that is in spite, of the welfare they are pushing, all of the socialism which is getting to the point of borderline communism, capitalism is that effective. But it creates wealth inequality which is why people hate it. It's really funny to see some of the wannabe economist that talk about how we need to address income inequality and all that trash, in the end you are just looking for an excuse to steal from someone that is more successful than you because of envy and resentment, it's really pathetic.
Commercial real estate is imploding because employees are demanding more work at home ability, & employers are seeing that they are saving $$$ on not having to maintain offices whilst not losing much in the way of productivity. Of course there are old school boss holdouts (like my last 2 Horrible Bosses) who resist this change, but change is always Inevitable.
China's building regulations are so bad, and their government has fostered such a culture of money above everything, encouraging cost cutting and corruption, that their buildings are not just bad quality, but there is now a common phenomena of Chinese made architecture, both in China and abroad, being so called "tofu dragons"; a Chinese term for buildings (including bridges and other structures) being so bad they collapse or begin to collapse, within about three to ten years (sometimes they don't even make it out of construction). There are new buildings in China that have only been built and sometimes inhabited within the last five years, where balconies, stairwells, and entire walls have collapsed. There was an account of one causing panic by shaking next to a busy road on a still day with no earthquake. The Chinese real estate market is, aside from everything else, in many cases a long term scam, only profitable to people buy and sell immediately, with long term investors in very real danger of owning nothing more then a pile of rubble in just a few short years. Edit; regarding "tofu dragons" I've heard three versions of this, tofu dragons, tofu buildings, and tofu dregs. I've heard tofu buildings is more commonly used but tofu dragons is what I heard first, and I admit that may have been a misunderstanding due to an accent.
Ofc it's just a speculative asset flip if that pos isn't even your own. You only lend the land and never own it so there's a deadline to any home ownership. You basically have to buy and sell off again within that timeframe. What a stupid concept.
@OrzTech Tbh I don't know as I haven't heard the original Chinese, just English translations, but hearing that my guess is it is is poetic slang due to the similarity. My memory is fuzzy but I feel like I've heard of other examples of that in Chinese before.
The last statement was especially true with the closure of Samsung and other foreign companies in China. They still do not dare to point the fingers at the right person.
Here's the thing I'm confused about: There is all this talk about the Chinese debt crisis, among other things that are poised to bring down their economy. But I also just listened to a podcast today (the latest episode of Making Sense as of writing this), where a world renowed economist is also talking about how much western national debt China owns and that if we ever start failing to repay that or China decides to call it in, they can effectively wreck the western world. In my head, I can kind of see a scenario where both of these things can exist simultaneously but I have a hard time processing it. How can China be in a massive debt bubble while also seemingly being in control of the rest of the world's debt bubble?
It is true that China owns ~1Trillion USD worth of US debts among others but the fact is, the US can always pay her debts because she can “technically” generate the currency needed to pay off these debts, for as long as inflation is in check, they can print them. Ive read about this in a book called “The Deficit Myth”.
China is actively undergoing socalist transformation, they have harnest the productive power of capitalism as well as the exploitative and damaging aspects of it as well, the party is there to manage these contradictions while they capture foreign capital to build their country legally and through contracts with big businesses. There will be a time when they nationalize housing or provide cheap and affordable housing for all, eventually though, debt is not a concern.
It's not hard. Chinese people and local governments borrowed money from the state via banks. Foreign governments like the US or Sri Lanka also borrowed from the Chinese state. In short we are all owned by the Chinese central government (Central Committee of the Chinese Communist Party). The debt issue of US is if it cannot repay on time it'll have to print more and that devaluates the dollars. If that happens too quickly people and foreign governments will ditch the dollars. That further accelerates the inflation and the devaulation of the dollars. The debt issue of China is if the people and local governments cannot repay to the central government the Chinese state owned banks will collapse. To prevent that the state has to increase the supply of yuan's and that increases the inflation, the property prices and the wealth gap since the poor are the furthest away from the printed money. What's worse the citizens and the local governments will borrow even more as the state punishes those that don't, so you end up with an even bigger debt problem.
A 2021 video repeating Gordon Chang's message from two decades ago? WOW. And with the fact that FRS debt just doubled within last two years, this video is just incredible.
The chinese economy crashed in 2015, it was postponed by Li Keqiang printing and also throwing all reserve into buying up in the market and bailing out banks, the bubble has become much larger now... it has been almost 7 years until the last chinese market crash but because of the money printing conducted due to the coronavirus leaves China without control over their fiat currency (not digital yuan), the CCP will not have the option to print more or use any reserve , theist either sell off bank assets which will make the estate market crash e.t.c but they must hold buying power otherwise china's domestic consumer market will crash which leaves the chinese people with a weak savings and unable to import crude oil since China is dependent on petroleum product since they are the biggest plastic exporters
@@18pluskiddo Is that reallly bad though? They have one of the best HDI scores and have the 3rd largest economy. Plus the median wealth is larger there than in Germany or the States. Can you really expect to grow infinitely while having finite resources?
Well I think China is fine. Their civilization has been in existence for 5000 years to prove that. The western civilization on the other hand are only 300-400 years at most. I suggest the west worry about themselves instead
Dunno if this has been talked about in another video here, but the debt to GDP figure of Switzerland isn't representative at all. Essentially, if you mortgage a house you have tax savings exceeding the cost of the mortgage, so nobody in their right mind owns a house without one. This makes the debt look extraordinarily large even though a lot of these people could also afford to buy property outright.
As someone born in China, I can tell you that the architecture of these throwaway apartment complexes makes your local Starbucks look like Parliament Hill.
@@elmohead Asianese's comment sounds more directed at how plain the apartments look. I think a lot of them are just a collection of concrete rectangles, with no finishing work. I've heard it's taboo in China not to completely renovate an home when you move in, so maybe they're barren for that reason.
@@elmohead higher probability of hitting a good civil engineer in China compared to australia i guess judging the amount of buildings they have compared to australia. Also a good civil engineer in australia or western country never been to China makes them know about their building? It just shows how delusional you guys are. And I am not here to defend the quality of chinese building, just can’t stand some comments nowadays that seem to complete shut off view points of others.
While it is good that you have sponsors on you videos, please make sure to set out clearly some of the basic terms of service, like eligible countries! Keep in mind not all your viewership are living in the USA, especially since the creator himself is in the same situation.
Consider China a Swiss Army knife with pieces made of porcelain or glass. Added for show ofc, but not made with sturdiness in mind. Consider the USA a wad of chewed gum that small tools have had their handles stuck inside of. One chances breaking while the other may drive you mad or away merely by looking at it for too long, regardless of it it'd work.
@@rogerreyne1877 know anyone here lost their job recently from covid infection in the us and their boss boots em out the door to die or survive with a 250k+ debt? I do and I just went that person's shitty funeral. We don't have it much better here perception isn't reality here in the greatest country on earth ...
Hey Economist! Just want to complement you on all your great work. I really enjoy the videos especially more for the right ways of thinking you promote, insted of telling viewers what to think. Kudos to you MATE!
One year has passed , and turn out it's US facing economy crisis and banks collapse 😁😁😁 Fancy video editing and advanced economic verbs didnt mean the 'prediction' is valid 😁😁😁
It's definitely not the first example. In the 90s and 00s, countercultures flourished, especially centered around punk, metal, and experimental music, particularly in the northeast (where people were historically better educated). Because Beijing functioned as a center for these music cultures, they were even more aggressively stamped out starting I'm the 2010s. I've seen some absolutely insane archival footage of speeches, concerts, and performance art from 20-30 years ago. 平躺has just, for whatever reason, captured a lot of international attention. Just because it's the first that many people outside the country are widely aware of, does not mean it is the first.
@@mervvmakestechno Of course it's the first that foreigners are widely aware of. It's the first one indicating some type of instability in China since the second wave of Yellow Peril.
@@peterwang5660 my point is more that it's the first that resembles western disillusionment with a capitalist work culture, so it's been picked up on and is easily understood by foreign outlets. Distaste for "involution" is easier to understand than the anxieties people felt about the disbandment of collective labor and the transition to a capitalist economy that happened in the 80s and 90s. Many of the counterculture movements from that time are neither communist nor anticommunist, in the sense that they are very specific reactions to very specific Chinese problems at the time. That makes them difficult to fit comfortably into a western narrative or Right vs. Left. People from eastern Europe and former Soviet states can understand better, but still may miss the main point. Previous ones were much more complicated. 平躺 comes from the internet and is always already commodified, much like the majority of North American political movements of the last 20 years. It is easy to digest.
I used to live in Shenzhen until 2018, it's a great city ngl but nearly no one lived in houses because most of the population lives in apartments. The Chinese government is certainty not perfect, but living in Shenzhen since I was young I never saw the country as a authoritarian and communist society, probably because I grew up in the early 2000s I didn't have to live in poverty and famine, China has come a long way since its revolution, all of my relatives have had experienced to changes throughout China's economic growth.
Your last sentence is the elephant in the room that should have been emphasised more: authoritarian regimes has traditionally redirected internal unrest to the outside - to wars of aggression. Sorry, I meant "wars in defense against justified aggrievement" of course.
@@royhuang9715 In the very beginning, lest we forget, the US went to Afghanistan in the wake of a clear attack on its soil. The world supported the action against the Taliban and Al Qaeda. That the morons Bush and Rumsfeld thought they could expand that to do a little regime-changing on the side is indeed something that was arguably criminal (IANAL). But don't conflate the two! Also, please google whataboutism.
@@michaelhoffmann2891 You seem to forgot Al Qaeda and Taliban is funded and trained by USA. Also you don’t fight terrorist by declaring war on a country. Terrorist organization by its nature is a non state player, going to war with a state is not going to solve terrorism. And what Bush did is exactly what you described, the US government decades long CIA black ops and generating misery in Middle East finally back fired. To divert attention, a war is needed thus a war is committed. Also only NATO went to war, it’s extreme narrow minded to think only NATO counties existed on earth. And you dodged Iraq entire possibly because you can’t even found a half assed excuse for that war. So when anyone brought up USA, your first response is use “whataboutism” to deflect the topic. You should google whataboutism and hypocrisy. Maybe use a brain this time.
@@royhuang9715 Is there a point to your diatribe? I'm not even American and don't live there. This thread is/was about the risk of China's authoritarian regime using external aggression to distract from internal problems as that wouldn't be unusual for such regimes. Focus on that and stop that whataboutism!
I live in Beijing and getting rid of the Hukou system isn't so simple. Without having more equal development across all of the different regions, millions of people will continue flocking to these urban hubs (Beijing, Shanghai, Shenzhen, and to a lesser extent Guangzhou, Chongqing, etc.). The thing is, the available public services in these places are already under a lot of stress and there's significant risk in expanding them to millions more people all of a sudden without doing something drastic to offset the burden.
Good explanation overall. There is one mistake that I wanna point out though: Because now the government generally provides you with a replacement unit when the old house is tear down, the price for the house paid is not "rent for 100 year" but a permanent asset at least for now before there is any policy change.
Another nice vid !!!! Very interesting ! The Housing bubble has been in the making for so long. Will it burst ? I have been living in China and when I get to see apartment prices, I don't really understand. A simple 2 BR with very questionable quality of construction at the outskirt of first tier city is more expensive than same apartment located in the heart of Ile Saint Louis in Paris !!!! It's just insane. And I am not talking about Shenzhen and Shanghai that are extreme cases...
houses in China are investment tools, not for accommodation any more. But the problem that the states try to stop the bubble will make that bubble burst.
You don't buy the "building", you buy the plot, the location. The physical cost of the building is cheap compared to the plot and location. Also, I once read the govt forbade owning empty plots, so plot owners build for the sake of legality.
It's an investment tool, but the problem is many of them are tofu-dreg project that won't last for more than 2 years. People will in time learn that real estate investment in China is one of the risky investment with more tofu-dreg projects being shown again and again.
me too, i was there in 2017 (?) to see all the sites, and outside my window i could see tiananmen square and the forbidden city, but anything beyond that was hazy.
Welcome to Shenzhen then. By the way, let me know which dry city host about 2 millions ppl don’t have some bad weather days? London? Beautiful Tokyo or New York? What I know it’s that even Apple new airdrop 3now have to assemble in China since India or booming Vietnam cannot,
@@johnsoncao3114 no the air quality is so much better over in big US cities. We actually have air quality controls. Ngl China's pollution is so bad it's spreading to other countries.
The best thing about a video such as this is reading the comments. Where dozens contribute their snippets of knowledge. Allowing one to develop a much more accurate picture of the situation. VS one man's research into a situation difficult to gather accurate information on. It is important to watch out for the 50 cent army comments, and disinformation. But I appreciate those who have first hand knowledge.
The headline was ' why you should be worried' but the author never really said in depth why a US based accountant or barkeep making the medium household income with a wife and a kid and two dogs should be worried. Unless it was the ominous one-liner at the end: that the government will trigger a war to deflect criticism.
No person outside of China needs to be worried about a purely Chinese problem. The Chinese won't start a war, either. Come down from your trees, everybody. :-)
Now you need a HuKou to buy an apartment. Not the other way around. It was the opposite 20 years ago when you could get a HuKou with an apartment. But not anymore.
Exactly! And the bigger problem I feel with this channel is that this guy makes no efforts whatsoever to even rectify his mistakes in past videos or post clarification/updates... Unlike for example, science TH-cam channels like Sci show or 'in a nutshell'. This blatent ignorance actually makes the information in his videos very unreliable. Like @economics explained, if you're listening... Then I feel you, and anymore can make mistakes, but the fact that you're never willing to rectify them, even in prior videos, that's just sad.
At 8:28. Gotta love that NYC Chinatown stock footage in case you run out of real China stock footage. LOL. I immediately recognized that corner cause I lived only a few blocks from there. ;)
Australia's debt should be taken in context. It's superannuation and family trust wealth stands at about 400% of GDP. Also if half the people in China own a house and it is 46 times the average wage and the average wage is 5k then that is 500 million times 46 times 5000. That's 115 trillion US which is not 56% of GDP. It's more like 560%
That last line is scary. "When there's only one mob of politicians that you don't dare insult, fingers are going to be pointed outward." Yikes. Wars have been started over less...
To be honest, I don't agree with that line. While China has had a long history of absolutist governments that would crack down on dissent, it also has a long history of dissent and both provincial rebellion and overthrowing of the entire central government. I can see political instability being aimed at Beijing.
@@UrVileWedge I agree and both are possible. That possibility is simply very scary, because right now NATO is very weak, with the train wreck administration in the US and Europe going full on authoritarian.
Special thanks to Public for making this video possible. ❤️ 📈
Get up to $70 in free stock! ➡️ public.com/EconomicsExplained
EE, can you do a video on organisations or regions such as East African Federation etc.
The thumbnail has a typo. It should say built not build.
Over the top protectionism? EU increased tax on non-EU imports from internet shops. Now even a few cent products will be taxed (before under 22€ was tax free, no need to enforce procedures regarding paying the tax).
Can you provide a little more info about the 'up to' $70 in free stock and fund with 'as little' as $1 I couldn't find and detailed info on the link. Thanks :)
The thumbnail, shouldn't it be 'built' not 'build'?
Is it just me, or is the entire global economy basically a house of cards?
It's a giant ponzi.
It is. Value is created by speculation on future profits. The entire economic system is built on having endless growth on a planet with finite resources.
And therein lies the root issue of capitalism
@@bee5440 Governments coercing big corpos to do their bidding, giving them free money while legislating their small competition out of the market is somehow capitalism's fault.
@UCx9OE9wFJsBp8xL3ThEqSrA it's not capitalism it's globalism. And the U.S. economy isn't even capitalism it's a free market,so f off
I would love to see you cover Lebanon's ongoing economic collapse. Our currency is now 5% its value. My painstaking savings, worthless.
Lebanon pulled a Venezuela? I didn't know about that, wow. I'm sorry to hear that
I know it must sound meaningless coming from some lad over in Europe but I hope you manage to recover. I’m sorry
@@colatf2 Yup. Lebanon continues to hustle for those infamous records. Top 5 largest explosions, top 5 most expensive telecom, top 5 hardest economic collapse... stuff like that.
Right now we have electricity about 2 hours every day. Fuel shortages mean people are queueing up for 3+ hours to refuel their cars, if they're lucky. Hospitals are short on essential supplies, like vaccines for children. Fuel & electricity crisis means some medical centers are having to shut their doors and ditch patients that will die without respirators or life support. On and on.
That sounds horrible. Heard a little bit about it after that awful port explosion. Hope things get better for you. Most of what I know about Lebanon is from being keen on archaeology and pre-history.
At least you aren’t Gaia online, now that is an economic crash. Fight on man.
Australians should be the most worried considering how much of their economy is built on exporting to China especially raw materials.
No need, they got the US who would buy up Australia exports.
Yes, no, kinda.
June ‘21 monthly stats were total exports $41B ($19B from China), imports $28B ($7B from China) and a $13B monthly surplus.
China goes we’re bugged short term but it won’t be the end of the economy.
We’re taking steps to diversify as quickly as we can and leave the ball in their court. Terms are now cash and carry…
@@andriod8014 The US already has all the natural resources that Australia produces.
@@nathancloete9932 Yes but it's cheaper to get it from Australia. The UK has a ton of coal still but we import from Aussie land because it's cheaper
@@rreinehr1 What percentage of total exports per year goes to China? About 36% according the last full year stat I can find. That's not even taking into account the Services Industry. How much Chinese money is invested in services e.g. Chinese students at Australian Universities, Tourism, Banking, Insurance??? If China tanks it's taking Australia with it.
I am shocked that how accurate you were , every details from social to politics to economy now has turned out to be correct in hindsight. I was already subbed but now i will watch your videos regularly. ❤
This video aged really well, with Evergrande's news recently
Yep, that's what brought me here.
What happened? (Excuse my ignorance)
Lots of information is not even close to truth...
@@joneywins Evergrande is China's second-largest real estate developer and it's drowning in debt. If it doesn't pay its obligations within this month it could go bankrupt. Most problably take a lot of other real estate developers with them. Millions of Chinese would loose their investment. It would make any other economic depression look like a stroll in comparison.
@@FredrikHaugen "Lose"
Yep. Well said. I live in China. Old people are essentially extremely low paid workers who work very hard. I doubt the younger generation would take on those roles
I’ve visited China a few times, the wealth equality is so extreme from an outside perspective. The poorer families or middle class is limited to 1 child while paying rent. On the other hand rich families with government connections have 3 or more children driving BMW.
A few punches to the face and they'll do anything.
@@brianyang5075 We see this inequality in over 70% of the countries in the world.
@@brianyang5075 There's is no one child policy anymore in China.. Furthermore 1 child policy only applied to Han Chinese, there are 56 ethnicity groups in China, many people from rural area's often had 2 or 3 children and they weren't rich or driving BMW's.
You think paying rent is weird? Do people live for free in other nations?
Looking at your name, you seem to be Chinese... How come you know nothing about China? One thing I dislike most is when Chinese spread fake news about China...
U in China on youtube........ Sure. Just continue doing this
I like how you encouraged people to verify any piece of data provided.
But let's be honest, who does that? Basically no one.
@@崔莱 and the ones who do just click the first link that supports their world view
It's a clever way to avoid backlash over getting things wrong
EE has had a lot of backlash for making up false conclusions on his channel before.
@@zachmason868 sure he has
Great video! Actually published before Property problems in China, especially Evergrande. One child policy that was implemented in China for decades now heavily burdens China as well. If you don’t get married and your parents are old, you need to support 3 people in Asian culture (yourself and 2 parents). If you get married and have a child, then 2 adults have to support up to 7 people (the 2 adult themselves, a child, 2 parents and 2 inlaws). That’s a huge drain of time and resources!
I have a question about the on child policy that would require too much research.. Do you know if the population of China has decreased in the last decade? As people have died and only one child from each set of parents get to live.
@@dagfinissocool I Believe that is a problem but also the male/female ratio as the last time I heard it was like 8/1 I only heard this so some research is required
@@dagfinissocool the one child policy started in about 40 years ago, and china’s population doubled during the period.
@@JohnJohn-bf7lh I just checked my own country and the population hasn't even close to doubled in the last 40 years. I feel like China has been lying to us..
@@albertohernandez3487 That ratio is only in the major industrial cities like Beijing and Shanghai, or maybe Guangdong. Its because more males leave home to work in the major cities than females. The actual ratio for the country is more like 51:49, but that 2% swing represents 37 million more males than females.
If _lying flat_ is considered a form of protest, I have been a peaceful rebel for most of my life, for at least about 18h a day. :D
Wait… 18 hours? You test mattresses for a living? 😂
So less of a Black Panther party activist as a lazy tabby cat protest?
@@TheFalseShepphard They’re dying to make a difference
@UpNorth lying flat statue?
Lying flat is not being lazy though. The main idea is more like minimalist for life: the society sucks, I'm just gonna hang in there, but nothing more.
Some people are putting more effort into Lying flat. One guy (the same guy who really popularized the idea of Lying flat) developed a system to nurture Chlorella in water as his food source, and claims that "I will never starve as long as there's sunlight".
What did he do? He calculated that the nutrition (excluding sugar) to sustain one human for 1 day needs to come from one 2L bottle of Chlorella, which takes 4 days to nurture.
In order to keep up with consumption, you need to nurture more than 4 bottles simultaneously (he was gonna prepare 8).
Problem is, by the time when you have consumed the first 4 bottles, other bacteria in the water have also reproduced to the point that the Chlorella water is not potable in the other bottles despite the fact that he has preemptively disinfected the chlorella.
Therefore, you need to speed up the production. By his calculation, every bottle needs to receive at least 20hr of sunlight per day.
So he installed: 1x 50W LED fill light, 1x smart switch with programmable timer, 4m^2 of reflective plastic film, 1x aeration fan, 1x aquarium air pump, 1x thermometer.
All these allow him to lie flat.
Here's a video: th-cam.com/video/IEr93xVuZsQ/w-d-xo.html
Remember that part when the entire world relies on them to make everything? That was a pretty bad idea
On the bright side a lot of east asia is keen to fill that void if they actually could is another question
@@dun0790 countries should make their own stuff as much as possible. Shipping things across the world is very damaging to the environment
I always thought that was stupid. Outsourcing jobs are done mainly because companies hate creating a safe work environemnt domestically, so they use sweatshops for the cheap labor and unregulated conditions.
Disregarding the morality of it all, we basically gave our economic independence away. We rely on these products coming overseas to the point the domestic industry collapsed and will never be able to remotely compete.
@@Esternos2891 Ai can easily make up for it.
@@wafflecopter9296 Ever heard of a competitive advantage?
Have fun buying an iPhone made by Americans getting paid $15/hr.
Anyone else come back after seeing Evergrande on the news?
Bailed out
@@zacksmith5963 has that happened? Got a link?
@@zacksmith5963 the Chinese government has said they won't bail them out looks like they are gonna collapse before the Gov will do anything to improve the situation cause Evergrande executives played their political cards poorly and the CCP disapprove of them lately
@@rishiarora3589 "Zack Smith" gets 50 yuan per China-simp post, don't expect anything.
@@oxcgen8592 The Chinese government would have to help them, even if they like them or not.
Well the timing of YT recommending this is impeccable.
I live in Porto Alegre, Brazil based on my income I'm top 12%, and a basic home costs 10 years off my income
This is good.
Congratulations.
What kind of home is that?
@@Ayvengo21 a 2 Room apartment that doesn't have major problems
A clássica história do sonho americano. Tem que estar dormindo pra acreditar...
There’s a time in every economic boom when it seems like it will go on forever. People with easy money in their pockets assume the boom will be permanent, because they’d like it to be so. Historically, it’s always around this time, when the economic bubble seems to be an unstoppable force, that it suddenly bursts, taking the dreams of its investors with it.
It happened in the 1920s in the USA, leading to the Great Depression of the 1930s... Who knows, maybe the 2020s will be China's 1920s...
@@TEverettReynolds The US housing bubble burst in 2008 leading to the Great Recession. Congress and the Federal Reserve bailed us out preventing it from being a depression.
@@bobs182 That was not a Great Recession.
🔺SERCH ADITYA RATHORE- HE ALSO MAKES INFORMATIVE CONTENT LIKE ECONOMIC EXPLAINED
@@TEverettReynolds The difference is that USA did nothing to prevent or postpone the collapse and were caught flatfooted, the CCP know that their economy could implode for about a dozen reasons and they do anything to prevent that. China might be able to hold on for several decades and then face a even worse collapse. Another problem is that they focus more on keeping their growth than improving the lives of their citizens, which leads to increasing frustration in the population, which in turn causes the CCP to tighten their grip. China will become even worse long before it suffers any real setback.
Evergiven: The Suez Canal incident, I burned $54 billion of the world economy!!!
Evergrande: Hold my $300 billion in unpaid bills!!!
Be careful of anything with "Ever-" in its name.
PEACE
PROSPERITY
BONANZA
FREE THINKING
@@Xalantor everpainful
Evergiving... The humble taxpayer
Violet Evergarden…beware coz u might cry
It'll be pretty interesting to see what happens when leases come to end of their life.. given you hold the time remaining on a long-term lease, as opposed to title, isn't it an inherently depreciating asset, unlike usual land investments?
Good point.
The assumption is that the CCP will have to renew at least a majority of leases, or the economy will collapse as so much money is tied, directly or indirectly, to the real estate market. Or that's what a rational government would do. With the CCP, we'll have to wait and see
@@talltroll7092 yeah, and it's likely a safe assumption. Wonder if there'll be a redistribution in some way, like change certain residential into commerical/industrial/etc to counter the ghost cities. It's just interesting to remove the "almost sovereignty" in the form of title, from a real estate asset.
And only 3 weeks after this was published we start to see the meltdown… great work on the video!
What meltdown, can you explain
@@darthplagueisthewise8880 I'm guessing Evergrande
That remains to be seen. I think China will power through this one like it always has. Government will bail out the financial institutions and continue pouring money into infrastructure and public projects. Once time comes to pay the piper, Chinese authorities will just remind us that capitalism is a construct and the final word in all matters is the Chinese state. That's why I think China's authoritarian retrenchment over the past few years is partly due to its structural concerns--they're preparing for any number of future calamities that are easy enough to see coming.
@@nerdonword561 and they would just contributing to the housing bubble and the debt it accumulates
tbh, they had issues since 2020.
wow this video has aged like fine wine after the whole Evergrande situation
Or cheese since it keeps getting a stronger and stronger smell making it harder to hide
After? It's still ongoing
They age like fine wine. EE is a master vintner of economic content.
“If someone spent his entire time wishing you ill, hoping you would fail, and shorting your stock, when he makes a pronouncement or assessment, assess something, makes a judgement about your present, your future, it’s probably a fair bet that the opposite is true.” ----- Eric Xun Li
Evergrande is nothing compared to GFC Leveraged derivatives that scale like a nuclear chain reaction
Would love to see a video about how the tanking of Japan’s once booming economy affected the rest of the world
@J Kairos Actually, they're really quite amazing. They have really good engineers and automation that allows them to see a lot of data that helps them predict the future of where industries are moving. This year they will be able to increase their GDP by almost 3.5 trillion, which means they are essentially adding an entire Germany GDP of income to their pockets. I work with manufacturers quite closely and with information platforms in Asia, they're not the only ones looking at the future. They are in the space ahead and able to jump ahead, like how America created credit cards, but China decided to go almost all digital. They are leap frogging the technology. People have been looking for the downfall of China for over 40 years, so I wouldn't be waiting anytime soon, China will probably grow long after we've all passed away.
@J Kairos you are absolutely right about the education reforms... I remember when china was all about economy. That was the only thing people cared in china and still do (money and family). But the thing that happened with the education absolutely destroyed a huge part of the education industry (private education). Many private centers declared bankruptcy and closed down. Thousands and thousands of people lost their jobs (I mean Chinese people) overnight and the government will lose a lot of money it would make taxing. So now all of a sudden ccp doesn't care about money? Ccp doesn't care people lost their job? I know why they say the policy is in place but there must be something else that they are not telling...
@J Kairos I was born in Hangzhou in 1996, absolutely amazing transformation of living standard under Chinese government! I travel back and forth between Hangzhou and Toronto, Toronto is no better in terms of infrastructure. Any statement that tries to slander China's economic achievement is garbage, I witnessed it, I felt it, it's very real!
@@zkh173 he didn’t slander your countries economic achievements he said your government is full of sick and twisted individuals willing to do anything it takes to achieve world domination, and with you being a Chinese citizen that gets to leave I hope you understand that there is no dispute for that. You will never have the same freedoms in China that you have anywhere else if the status quo is maintained
@J Kairos I was trying to be nice and civil about it gotta go one step at a time with heavily indoctrinated people
4:01 - Real Estate in China
5:39 - Speculative Asset Vs. Place to Live
11:44 - Land Lease/Rent
13:58, 14:04 - Work
14:24 - LyingFlat Protest
14:55 - Debt
15:00 - Household Debt
*15:10**, **15:21** - Debt to buy Appartment*
15:41 - Govt. Help
“Lying Flat” would also be a good descriptor for the trustworthiness of the quality of those high rise apartments, both structurally and as investment securities.
You got to admire those buildings, joining all those young people on their protest.
nah we just couldnt afford one
Hard to talk when we got similar condos in Florida and no public infrastructure development to speak of for decades
You never actually own any piece of land beneath the dwelling. The authoritarian government could just take it away from you anytime they want.
@@tomaszyarlett8681 But why would they?
So *Another* Dystopic future is on the horizon? Man the multiverse is really depresing nowadays
This is perhaps both the most depressing, and dumbest timeline.
Every problem is also an opportunity.
China going down will be collectively good for all of us!
@@Kushagra.j you sure about that from an economic perspective?
@@Kushagra.j except the U.S. is likely going to blow first. Then China. All these capitalist countries are built on houses of cards for us, and another world for them.
Who knew 3 weeks later, Evergrande is about to default with 15-20% people of China’s GDP…crash
Can you think China will be replace USA or EU
And here goes the doomer mentality of incoming china collapse again
How many times is this? 6? 7? Maybe let china collapse for once before drumming and celebrating
@@metagde6402 so you shill campaign continues haha working extra hard to play janitor for the CCP, are we?? Haha Wumao
@N Fels cnbc and abc reporting it though . actually alot of outlet so far no bailout yet wumao
@N Fels Evergrande hasn't been bailed out yet what are you talking about?
As a brazilian, i love your accent. Feels way more comfortable to my ears than "the more used" english ;) Nice and very informative video, congrats from a new subscriber.
Hasn't Gordon Chang been saying this in his "China Will Collapse" books for decades now...
Gordon Chang: predicting the imminent demise of China for twenty years and counting. Eventually, he'll be right.
@@kenban8533 That's like all the people predicting the world will end. Eventually one will be right and he can call himself the messiah.
Here I'll make a prediction myself. "China will collapse 1 million years from now."
Predictions with no time limit are useless, given a million years, everything will eventually happen.
@@karlcarlos8516 yes, exactly
@@ritwikreddy5670 That is not completely fair, if you get the mechanism of the collapse correct. you can't put a time on these things, mostly because simply making the prediction effects the outcome. People screaming about how the government is going to take are freedoms and it will be like 1984 in large part are the reason they have been wrong (well up till now), they themselves were resisting the change and falsifying their own predictions.
You should do a video on the economy of yugoslavia and its ex yugo countries in the modern day
Love your videos,
From Bosnia and Herzegovina
This video would sadly be quite depressing in some aspects
@@mframedeye37 yes but it would be cool and show some light on our modern day banana republics
@@AC3pog ye I would love to see more videos on southern and Eastern Europe
What's going on in Yugoslavia?
I second this suggestion.
When two fishes in the pond are fighting an Englishman must have passed by
When fishes in the pond are armed an American must have passed by
When fishes in the pond have disappeared a Chinese must have passed by
When the two fishes in the pond are too drunk to swim, a German must've passed by
@@appleslover Maybe a Russian passed by, well actually the fish would be dead of radiation poisoning if a Russian passed by.
@@dawudsandstorm7852 the fishes would have red books beside them while spouting how the tyrant bourgeoisie is taking the liberties and hard earned effort of the gentle laborer
When critics of US foriegn policy disappear or die mysteriously the CIA must have passed by.
@@j.grimes4420 Or when critics of US foreign policy suddenly receive massive shipments of arms and start killing US citizens abroad.
Always interesting to find a level headed video about an issue before things really blow up.
A few weeks later we have this Evergrande thing going on….
I think Evergrande lost cant impact China economic 🥲I think it make us see China politic very power and it control all business
@@ashleyashley369 u 'think' lol good one bot, account created Sep 12, 2021
@@v000000000000v yo good catch!
@@v000000000000v just look at that grammar. Tells you all you need to know already
@@ashleyashley369 you are really out here simping for china in random youtube comments? CCP payed?
Back in the '80s when everyone thought the Soviet Union was unstoppable their GDP growth was off the chart. They got that growth through government subsidized infrastructure military and rail projects. It got so bad that there used to be a train that ran in circles around Moscow full of cardboard and was never offloaded. All to meet a government quota that on paper looked as though the real volumes were off the chart but in reality it was wasted resources. That is exactly like what is going on in China currently and the Miss allocation of resources to make paper growth.
also like how some businesses in the US dump their own products rather than donate them just to chase profit, even though donating cost nothing.
@@Krasnoye158 Ya I do admit some parts of capitalism has this issues. Food produce being wasted and bleached (to prevent homeless people from taking it) and amazon destroying their inventory in order to maintain the supply side of supply and demand.
@@Krasnoye158 when your currency is the world reserve currency you can pull such stunts and get away with it China does not have such a luxury
Do note, some products, like raw milk, are dumped because it turns rotten/bad if nobody can process or store it. The places with pasteurizers and fridges aren't able to just run and donate 24/7 without bankruptcy on the horizon rn with our setup.
@@Krasnoye158 That's what happens when monopolies take over and there is only one supplier. In a normal functioning economy with open and free market competition that would never happen.
Hukou is just Mandarin for household registration; imo it'd be easier to understand if you just say that China ties governmental services to the registration instead of actual residency and disallows people from moving their household registration.
Sounds like it enforces an apartheid system between rural and urban residents
@@timothydee1507 that’s exactly what it is and it helps limit the freedom of movement especially considering that it was one of the first long term policies that were implemented by the communists it’s just that the Hukou system stuck around unlike other polices such as killing all the birds…
@@timothydee1507 POV: you don’t know the definition of apartheid
@@augustuspetrov7844 not apartheid in the literal sense
maybe segregation would be more suitable?
@@augustuspetrov7844 sounds like u missed the point
The problem of “laying flat” is all too familiar to me, and I’m not even Chinese. When wages don’t increase but costs of living do month after month, its hard to muster motivation to work. My question is what can be done about this.
Remove the shitty govt regulations. Listen I hate trump, but there is no denying the economy grew. Every bracket of the economical ladder saw an increase. And all he really did was slash back govt restrictions. Which Biden reinstated as it was an executive order (which I detest any president using them.)
@@crillianmarvin6256 bruh I'm not even american
I am providing a solution that had visible effects. Not saying it would work for your nation. Economics is a complex beasts. Consider it a nugget to research and mull on and reach your own conclusion should you be so inclined to do so.
Who knew building ghost cities are not really that profitable? 😵💫✌️
Ask spain
Ask the Denver & Vegas areas
@@sideshowbob ask china
Sit back and watch the dominoes fall and if the ccp should fall remember you almost had it all !
@@johnerdelyi48 i sm sitting bsck and watching usa fall . Ccp is kaughing as well
Why don't they abolish the system?
**WH 40k Lost Crusade Advert is played**
💀💀😂
time for the glorious empire
When I've heard "This... is China", I thought Doug Demuro started a new channel on Economics 😀
"I'll look at all the pros and cons of their style of government, and finally.. give communism a Doug score"
😂 agree. We need Doug Score for countries
Grandstianding is very popular.
Quirks and features of China's debt system & real estate market
"This.... is China and today I will show you the different quirks and features of communism.....with chinese characteristics." ~ Doug
The ending of that video is chillingly prescient.
EE is seriously driving up demand for
Their videos with this posting schedule
Or the impending collapse of the global economy is driving demand for Economics Explained videos. Occam's razor. You pick.
@WorldFlex the ending should tell you all you need about this channel, it's not interested in economics but fear mongering in order to get clicks, "who will they blame when you only have 1 party" while an American flag is in the background, not only implying "this can never happen in the west as you have 1 side blaming the other until we vote" but is also making an ominous remark how China will enter into a possible war with the US over its own economic hardships. Pure fear mongering!
I just watched this video a month Ago when it was available. This week Evergrande crisis pops up in the global economic scenario!! Definitely good quality of information and analysis in your videos!! Highly underrated!!! Keep it up, can't wait to watch your next video.
Moreover, they had 30years to get property as there were no property for 50 years if not a 109years. That property rights are someting very real jow but was not before
Hats off to your excellent presentation and extensive research. Clear, comprehensive, to the point, no misunderstanding at all. It’s even a tough job trying to explain so many interrelated things to Chinese people who have some knowledge in the economy.
As a Chinese Australian who has done many years of research into the Chinese economy and first hand experience in living in the big cities, I say you remind me of the best economic lectures given by top economists I attended.
Funny reading this after reading other comments showing that he's not only completely wrong on this video but has an extensive history of bad economics and making up bad conclusions lol
.. at least get anyone else to narrate
@@jameshsu6364 that's because he's a keynesian economist
@@garam6555 who tho?
One year has passed , and turn out it's US facing economy crisis and banks collapse 😁😁😁
I come watch this every single day. Such a good video.
Maybe the decades long race to the bottom while driving down quality has detrimental effects! Who would've guessed!?
Crazy, right?
Definitely true, one of my former coworkers divorced her husband so they can buy another apartment. They still lived together, traveled together and raised their kids together.
I'm not sure you can say they've regressed into authoritarianism since it hasn't stopped being authoritarian.
Well it’s getting worse and worse under the current dictator. It wasn’t this bad 20 years ago when China just started open to the foreign market.
It’s a matter of degree China was less authoritarian a decade ago than it is now but was never a free society
Problem?
There was hope few years back, but now every chinese have a red book to learn from school called "Xi Jinping 's thought". Fail to know the red book, you fail exam. Oh and if you dont know it well enough in corporate world, well you can kiss your career goodbye as you gifted your colleague your well derserved promotion. History repeats. Especially in a country where history is either forgotten, rewritten or censured.
Well, I grew up in China. There was a time back in 90s and 2000s when China was headed in the right direction, slowly becoming more open, free and even tip toes in a bit of democratic reform at a very low level. But then Xi came to power, and he started to reverse all that -- more central authoritarianism, less personal freedom, more censorship, propaganda, antiwestern nationalism, clamp down on businesses...it's getting worse and increasing feellike Mao's cultural revolution 2.0.
I lived and worked in China. When we lived there we were able to travel all around and to places where foreign tourists don't go. First let me say that so many Chinese we met and knew were great. There are also many beautiful places that we visited. On the other hand outside of Shanghai, Beijing, Shenzhen, Guangzhou and other higher tier cities, the majority of Chinese people live in third world conditions and struggle to survive.
I wonder how this compares to the US. NYC, LA and a couple other major cities are certainly first world; but after driving across the country a couple times I’ve noticed “flyover country” is not.
@@ChromeTztizit you'd be surprised. even people out in the countryside live very comfortably.
@@maxg4304 you mean in the US
It a fact. rural china is not good compare to big city.
If you think majority of Chinese people live in third world condition, then you never see how third world conditions look like. Have you been to SEA, India, Middle East, and Africa, even many places in east Europe. Some of these places will renew your definition of "poor" and "third world", maybe you can define them as fourth world, who knows. Just look at the countries that are on the Global Hunger Index list. Over 100 countries that are even worst than China.
Hmmm, if the Chinese economy were to collapse, it would be very bad for my state in Aus which is heavily reliant on selling resources to China.
By the same token, it would be interesting to see the % of Chinese nationals who are investing in Real Estate overseas, to avoid the bubble at home and I guess Chinese laws on Real Estate investment.
Hope you enjoy your freedom in WA.
It's clear to me you're Australian government has completely bent over to the CCP so good luck...
I'm sure AU would rebound quick, because America would definitely push to take china's place in the economy
China built more ghost cities all over southeast asia, look it up....if they go down, they drag down everyone with them 😬
Australia should diversify their economy and export and should start looking for new emerging markets like India, Mexico, Vietnam, Brazil, South Africa etc..
You had me at "Why you should be worried about China"
Do not worry my man, officially the world as of now had 210.000.000 cases and 4.100.000 deaths. China had....4000 cases...with 0 death...hmm.
I've been watching documentaries saying how precarious the economy of China is, how bad the choice they made are, how it will backfire and hurt the world economy for at least 20 years. 20 years later, they are still catching up on developped countries. I can't believe the irony in the fact that developped countries keep bashing China, and are still not even close to do what they are doing in term of economic growth and social improvements. Western societies are basically stuck in statu quo arguing on bs like "is a mask really effective", while the only care of their governement is to get reelected..
@@pascalladal8125 previously due to there are new investment filling the game it is like a ponzi scheme.....when there are new comers, the scheme can still works. Most importantly, it is China government want to "kill" the rich tech giants for it's own gain via communism tricks that scares investors.
China sucks
@@pascalladal8125 Not all of us are stuck on that mask BS...
This is basically a really good example of how GDP has been used wrong and completely different from how it was intended
Could you please elaborate?
The GDP that china published is simply a blatant piece of bullshit. They have being declining for a few years now they just don't admit
@@DavidSmith-nx3zw last time I heard that china should become a developed country and was hiding the actual GDP, under reporting. Whatever.😂
@@DavidSmith-nx3zw to be fair whilst China is only seconded by the US as to how shut capitalism uses GDP, they have taken the most amount of people out of poverty.
If we took China out of the total there would be a % increase in poverty
@@MikeSpike117 They took people out of poverty by lowering the threshold of what being "in poverty" mean. It's like moving "being fat" from 90kg to 120 kg. That's how they beat poverty.
Excellent summation. Thanks.
alternative video title: "Why Don is Excited about China's Debt Crisis"
“Lying flat” is apparently the Chinese equivalent of “the Great Resignation.”
Nah... not the same thing.
Based on EE's explanation, it seems closer to Japan's Hikikomori phenomenon
Lying flat in American be like: STOP RESISTING STOP RESISTING🧔🏿🦵🏻
Interest in those theft, always accusing others of stealing like all the Americans always blames everyone else, but itself. a nation failed 365 degrees around, but the only resource is pointing the filthy finger to China as a scapegoat.
@@joellis5915 there are only 360 in a circle mate
SUGGESTION - You flash graphs and data up and gone so quickly that the eye cannot get a faint idea of the content. Since most pics are meaningless background/theme shots, I suggest you more than quadruple the time you display numbers, graphs, data etc.
Press pause mate
Use your space bar
@@8Scientist that’s why he said it’s a suggestion, There are always ways to make good use of a bad product, nothing wrong with giving a suggestion to improve.
@@rahulray5411 It's not improvement if everyone else don't like it
@@alan5506 are you saying others enjoy looking at background filler stock footage more than actual data the video is based on?
EE you have one of the best subscriber to views ratios on YT.. not bad mate 👍
There is most definitely a regression going on in China. I lived there for a decade 2004-2015, and started feeling it from around 2012. Started with all the arrests of foreigners in Beijing in the bar districts about 2011, then about 2014 over the Day Islands off Taiwan (I even went to a brainwashing session with the school I was teaching at! And also got caught up in a heavy protest/ riot in the middle of Tiyu Xilu in Guangzhou). And now they have shut all online schools providing English classes for students, so no foreign 'influence' anymore- this has happened very quickly. Something big is coming....
But what has happened in the least 6 years then?
Do you have any idea on that something big? Will it cause the economy to fall back?
Culturally yeah, not economically.
It's regression for us foreigners not the locals.
@@Krasses It's getting more and more complicated for foreigners. Bit by bit. I know a lot of people who left, who are planning to leaving and some who since the pandemic can't come back even though their life is all here. But the most annoying is when you are running a WOFE (Wholly Foreign Owned Business) here in China, you have lots of issues, inspections, anonymous complaints especially if you are successful. Outragious enough: your local competitors can be non compliant but they face no issues. Last thing to notice: there are incentives, wording, speeches... to push Chinese to buy Chinese products not foreign brands with the underlying idea that foreign brands are bad and harmful (hilarious).
@@Krasses what happened? Xi became emperor.
@@nicoz4122 so they're acting like USA lately??? 🤔
7:00 poking Michael Burry with a stick... "C'mon, do something"
A drumstick?
Polymatter has a great series that goes even deeper into this topic
Does he go into the Africa x China relations
@Glen Roberts Roberts wendover productions does
@Jan Rozsypal lol you make all these big claims but show no evidence, trying to sow discord just as a wumao would.
All profiles in this thread have been around for a while and you are the only one making bold claims, after checking their profiles and reading their comments on multiple videos I see no pattern and agenda.
So please reason with us and explain your comment.
As always, great job !
Need more 2020 and early 2021 data. Covid HAS to be a factor in this.
@gioyu comi HAI NEIGHBOR
@gioyu comi this wu flu is pearl harbour x 1,000,000.
@@joetheox1202 more like the Gulf of Tonkin
Considering how much production was moved there, yes we should be concerned. And then learn our lesson and bring production back to OUR OWN countries.
Shouldn’t the thumbnail say "built" not "build"?
@@Weeee439 I assume so, just alerting the creator so he can fix it
@@dan203 Good lad! Should be an easy fix. 🙂👍
Always interesting, thank you.
As a real estate Professional myself nothing scares me more than that term “expectation of future growth” commercial real estate especially is over leveraged to the point where a collapse is inevitable. You can’t take a $1mil office building and pay $1.5mil because you think in 10 years it’ll be worth $2mil.
Commercial real estate isn’t like residential. When you buy an income producing property there’s an expectation of continued income stream. So instead of overpaying on a house “because it’s what you want” you’re overpaying on something that doesn’t make you any money. And there’s not justifying it other than you HOPE that the growth continues.
The problem with commercial real estate valuation comes from the fact that 5gere is more KYC due dilligence in a 100k retail brokerage account than there is in a $100mm commercial real eatate transaction.
This is why you work in real estate and not as an economist. The world has printed trillions of dollars during the pandemic. What do you think that does to real estate prices? The building is not worth MORE - the currency is simply worth LESS.
@@gooel The Us government has been printing money and giving it out to people as "free" and now they are gonna pay the price.
Also, many of these people for the last year or so have been living basically rent free, when the tenants eventually get booted off, many of them will likely thrash the place as a form of retaliation, and many of these landlords will just sell their properties and dust their hands off, while making some good money, and that will be the last chance to get a house at an affordable price.
Then prices will increase and basically never go back down again until they stabilize again. Hope the "free money" was worth the years of probable stagflation we are gonna get.
And the average dude is just gonna tell how this was a "failure of capitalism" what a load of bs, these people don't even understand the most basic things about economics.
Why is college expensive? Is it a failure of capitalism? Or is it because the government mandates that everyone gets a shot at it if they want even if they normally would not meet the standards? Why do you think they keep lowering the standards for getting into college? That along with the fact that they basically nationalized the student loan industry, and they wonder why college is expensive, failures of capitalism.
Or healthcare being expensive for pretty similar reasons, basically obamacare, the government mandates that you cannot turn anyone down for insurance, so who do you think has to pay for people who cannot? And if you cannot turn anyone down, that also directly results into people caring less about their own health and trying to stay in shape, because if they cannot turn you down, why even bother trying?
So is it a failure of capitalism? Or simply the government mandating things thinking that they will make things better, while in reality they make everything worse?
In the end capitalism is simply competition, to embrace equality is to embrace failure, because to have equality you must bring people who are above you down to your level, and when you do that, you ruin your economy, because no competition means stagnation, you wonder why the rich is getting richer, but you never stopped to think, is my standard of living lower than someone from the fifties or sixties? Because i assure you it is not. Because while it is true that the rich is getting richer, the poor is also getting richer. And that is in spite, of the welfare they are pushing, all of the socialism which is getting to the point of borderline communism, capitalism is that effective. But it creates wealth inequality which is why people hate it.
It's really funny to see some of the wannabe economist that talk about how we need to address income inequality and all that trash, in the end you are just looking for an excuse to steal from someone that is more successful than you because of envy and resentment, it's really pathetic.
@@gooel This has been an issue in the making since before the pandemic.
Commercial real estate is imploding because employees are demanding more work at home ability, & employers are seeing that they are saving $$$ on not having to maintain offices whilst not losing much in the way of productivity. Of course there are old school boss holdouts (like my last 2 Horrible Bosses) who resist this change, but change is always Inevitable.
China's building regulations are so bad, and their government has fostered such a culture of money above everything, encouraging cost cutting and corruption, that their buildings are not just bad quality, but there is now a common phenomena of Chinese made architecture, both in China and abroad, being so called "tofu dragons"; a Chinese term for buildings (including bridges and other structures) being so bad they collapse or begin to collapse, within about three to ten years (sometimes they don't even make it out of construction). There are new buildings in China that have only been built and sometimes inhabited within the last five years, where balconies, stairwells, and entire walls have collapsed. There was an account of one causing panic by shaking next to a busy road on a still day with no earthquake. The Chinese real estate market is, aside from everything else, in many cases a long term scam, only profitable to people buy and sell immediately, with long term investors in very real danger of owning nothing more then a pile of rubble in just a few short years.
Edit; regarding "tofu dragons" I've heard three versions of this, tofu dragons, tofu buildings, and tofu dregs. I've heard tofu buildings is more commonly used but tofu dragons is what I heard first, and I admit that may have been a misunderstanding due to an accent.
Ofc it's just a speculative asset flip if that pos isn't even your own. You only lend the land and never own it so there's a deadline to any home ownership. You basically have to buy and sell off again within that timeframe. What a stupid concept.
PEACE
PROSPERITY
BONANZA
FREE THINKING
Just like a Florida condo. Or Florida pedestrian bridge.
@OrzTech Tbh I don't know as I haven't heard the original Chinese, just English translations, but hearing that my guess is it is is poetic slang due to the similarity. My memory is fuzzy but I feel like I've heard of other examples of that in Chinese before.
Literally same problem in most of countries….
PolyMatter has an excellent series on this.
True
already saw it, and its a great series
Polymatter straight up even mentioned China's water shortages in detail it was crazy good
he made a 4 video series right ?
PolyMatter is a moron making clickbait lol.
So many straight up fake news in his series
The last statement was especially true with the closure of Samsung and other foreign companies in China. They still do not dare to point the fingers at the right person.
Here's the thing I'm confused about: There is all this talk about the Chinese debt crisis, among other things that are poised to bring down their economy. But I also just listened to a podcast today (the latest episode of Making Sense as of writing this), where a world renowed economist is also talking about how much western national debt China owns and that if we ever start failing to repay that or China decides to call it in, they can effectively wreck the western world. In my head, I can kind of see a scenario where both of these things can exist simultaneously but I have a hard time processing it. How can China be in a massive debt bubble while also seemingly being in control of the rest of the world's debt bubble?
It is true that China owns ~1Trillion USD worth of US debts among others but the fact is, the US can always pay her debts because she can “technically” generate the currency needed to pay off these debts, for as long as inflation is in check, they can print them. Ive read about this in a book called “The Deficit Myth”.
China is actively undergoing socalist transformation, they have harnest the productive power of capitalism as well as the exploitative and damaging aspects of it as well, the party is there to manage these contradictions while they capture foreign capital to build their country legally and through contracts with big businesses. There will be a time when they nationalize housing or provide cheap and affordable housing for all, eventually though, debt is not a concern.
@@aaron199x and china can print their own money too. But nobody wants to accelerate inflation
It's not hard. Chinese people and local governments borrowed money from the state via banks. Foreign governments like the US or Sri Lanka also borrowed from the Chinese state.
In short we are all owned by the Chinese central government (Central Committee of the Chinese Communist Party).
The debt issue of US is if it cannot repay on time it'll have to print more and that devaluates the dollars. If that happens too quickly people and foreign governments will ditch the dollars. That further accelerates the inflation and the devaulation of the dollars.
The debt issue of China is if the people and local governments cannot repay to the central government the Chinese state owned banks will collapse. To prevent that the state has to increase the supply of yuan's and that increases the inflation, the property prices and the wealth gap since the poor are the furthest away from the printed money. What's worse the citizens and the local governments will borrow even more as the state punishes those that don't, so you end up with an even bigger debt problem.
that's where you need actual numbers to make sense of things.
A 2021 video repeating Gordon Chang's message from two decades ago? WOW. And with the fact that FRS debt just doubled within last two years, this video is just incredible.
The chinese economy crashed in 2015, it was postponed by Li Keqiang printing and also throwing all reserve into buying up in the market and bailing out banks, the bubble has become much larger now... it has been almost 7 years until the last chinese market crash but because of the money printing conducted due to the coronavirus leaves China without control over their fiat currency (not digital yuan), the CCP will not have the option to print more or use any reserve , theist either sell off bank assets which will make the estate market crash e.t.c but they must hold buying power otherwise china's domestic consumer market will crash which leaves the chinese people with a weak savings and unable to import crude oil since China is dependent on petroleum product since they are the biggest plastic exporters
I thought it crashed every day since 1990s according to Gordon Chang and his wishful believers.
When you realize that he has an Australian accent, suddenly it all makes sense.
@@EzraMerr haven’t seen someone write more nonsense in one paragraph like you. Congrats.
Yeah. I've seen actual intellectuals saying that debt crisis is a myth so this videos hits all the bells for that kind of Pseudoscience
Finnaly after ages here it is our beloved economics explained ❤️
yea, no boring shorts
Amazing descriptive Video. Thanks and sub
"Nobodies got rich by betting against them, yet"
*Michael Burry has entered the chat*
He was already wealthy, not to mention he lost quite a lot of money shorting the stock market in the past
@@nazariit171 True but he also had a 489.34% return when even banks were going broke.
@@nazariit171 he was one of the very few 'rich' who made money while others were getting wrecked upon
@@nazariit171 his average return still kills all the other big investors the last couple decades
@@quinnh4313 u mean the guy who still lost money
Opening up to the global economy and booming like crazy before stalling...Sounds a lot like Japan in the 1930's.
Japan had been at continuous war for over 30 years by the time 1930 rolled around.
Or Japan post-WWII until the 90s... They've stagnated ever since.
@@18pluskiddo Is that reallly bad though? They have one of the best HDI scores and have the 3rd largest economy. Plus the median wealth is larger there than in Germany or the States. Can you really expect to grow infinitely while having finite resources?
Well I think China is fine. Their civilization has been in existence for 5000 years to prove that. The western civilization on the other hand are only 300-400 years at most. I suggest the west worry about themselves instead
@@blardymunggas6884 China destroyed its cultural history under the CCP. The nation itself will fall. The people will rebuild.
I'm not worried about China debt 'crisis', I'm worried about the Western debt crisis- Jim Rogers.
whataboutism at its best
commie bots spotted
@@jasperlee7490 okay there Jasper try to keep calm while foaming at the mouth at trying to keep your anti-asian hate at bay
Imagine freaking out over a quote by billionaire Jim Rogers 😅
@@jasperlee7490 wataboutism is a word made by hypocrites
I dont want to repeat mp.3
(Inserts into video)
Love the videos lol
Hurray 😍 we have new video. I was missing you man
"Kingdom Built On Sand" is an appropriate way to describe the situation.
Actually came down here to point out that typo in the thumbnail too.
how do you figure?
or a ponzi scheme that still holds up for 40 years
Egypt was built on sand and it was around for a while...
@@elmohead
glass building built on sand maybe?
Dunno if this has been talked about in another video here, but the debt to GDP figure of Switzerland isn't representative at all. Essentially, if you mortgage a house you have tax savings exceeding the cost of the mortgage, so nobody in their right mind owns a house without one. This makes the debt look extraordinarily large even though a lot of these people could also afford to buy property outright.
Man that's inefficiency right there
@@inigobantok1579 Yeah it's a dumb system, but it still massively misrepresents private debt.
@A Fels There is no zero risk debt, just ask Spaniards about mortage debt.
@A Fels Nothing is zero risk, go back to earth.
@A Fels _"A loan of which the collatoral has a higher value than the loan, is zero risk."_ That's a myth.
Hey! We haven’t seen any new content in a while. I need my explained fix regularly you know. Keep ‘‘em coming!
As someone born in China, I can tell you that the architecture of these throwaway apartment complexes makes your local Starbucks look like Parliament Hill.
I have seen videos on those tofu buildings and man I would be so scared to be in any building in China
Didn't know that being born in China makes you knowledgeable in civil engineering...
@@elmohead Asianese's comment sounds more directed at how plain the apartments look. I think a lot of them are just a collection of concrete rectangles, with no finishing work. I've heard it's taboo in China not to completely renovate an home when you move in, so maybe they're barren for that reason.
@@elmohead higher probability of hitting a good civil engineer in China compared to australia i guess judging the amount of buildings they have compared to australia. Also a good civil engineer in australia or western country never been to China makes them know about their building? It just shows how delusional you guys are. And I am not here to defend the quality of chinese building, just can’t stand some comments nowadays that seem to complete shut off view points of others.
@@elmohead you don't need to have a degree to know zero effort went into the design of these apartments.
While it is good that you have sponsors on you videos, please make sure to set out clearly some of the basic terms of service, like eligible countries! Keep in mind not all your viewership are living in the USA, especially since the creator himself is in the same situation.
The economy of China is like fine china. It's a beautiful work of genius but if mishandled will fall and shatter!
Just like the US ( except the genius part )
Consider China a Swiss Army knife with pieces made of porcelain or glass. Added for show ofc, but not made with sturdiness in mind.
Consider the USA a wad of chewed gum that small tools have had their handles stuck inside of.
One chances breaking while the other may drive you mad or away merely by looking at it for too long, regardless of it it'd work.
@@mongoldiscipline How those social credit points treating you Chen? You still allowed to exist?
The mention of “fine China” just gave me boxer rebellion flashbacks.
@@rogerreyne1877 know anyone here lost their job recently from covid infection in the us and their boss boots em out the door to die or survive with a 250k+ debt? I do and I just went that person's shitty funeral. We don't have it much better here perception isn't reality here in the greatest country on earth ...
Hey Economist! Just want to complement you on all your great work. I really enjoy the videos especially more for the right ways of thinking you promote, insted of telling viewers what to think. Kudos to you MATE!
One year has passed , and turn out it's US facing economy crisis and banks collapse 😁😁😁
Fancy video editing and advanced economic verbs didnt mean the 'prediction' is valid 😁😁😁
tǎng píng is a great step into that country history: Beyond one's feeling, it is the first example of a counterculture
It's definitely not the first example. In the 90s and 00s, countercultures flourished, especially centered around punk, metal, and experimental music, particularly in the northeast (where people were historically better educated). Because Beijing functioned as a center for these music cultures, they were even more aggressively stamped out starting I'm the 2010s. I've seen some absolutely insane archival footage of speeches, concerts, and performance art from 20-30 years ago.
平躺has just, for whatever reason, captured a lot of international attention. Just because it's the first that many people outside the country are widely aware of, does not mean it is the first.
@@mervvmakestechno Of course it's the first that foreigners are widely aware of. It's the first one indicating some type of instability in China since the second wave of Yellow Peril.
@@peterwang5660 my point is more that it's the first that resembles western disillusionment with a capitalist work culture, so it's been picked up on and is easily understood by foreign outlets. Distaste for "involution" is easier to understand than the anxieties people felt about the disbandment of collective labor and the transition to a capitalist economy that happened in the 80s and 90s. Many of the counterculture movements from that time are neither communist nor anticommunist, in the sense that they are very specific reactions to very specific Chinese problems at the time. That makes them difficult to fit comfortably into a western narrative or Right vs. Left. People from eastern Europe and former Soviet states can understand better, but still may miss the main point. Previous ones were much more complicated. 平躺 comes from the internet and is always already commodified, much like the majority of North American political movements of the last 20 years. It is easy to digest.
I used to live in Shenzhen until 2018, it's a great city ngl but nearly no one lived in houses because most of the population lives in apartments. The Chinese government is certainty not perfect, but living in Shenzhen since I was young I never saw the country as a authoritarian and communist society, probably because I grew up in the early 2000s I didn't have to live in poverty and famine, China has come a long way since its revolution, all of my relatives have had experienced to changes throughout China's economic growth.
Your last sentence is the elephant in the room that should have been emphasised more: authoritarian regimes has traditionally redirected internal unrest to the outside - to wars of aggression. Sorry, I meant "wars in defense against justified aggrievement" of course.
You're so funny, voted up.
So that’s why US spent 20 years in Afghanistan and 18 years in Iraq. What was it called again oh preventive wars.
@@royhuang9715 In the very beginning, lest we forget, the US went to Afghanistan in the wake of a clear attack on its soil. The world supported the action against the Taliban and Al Qaeda. That the morons Bush and Rumsfeld thought they could expand that to do a little regime-changing on the side is indeed something that was arguably criminal (IANAL). But don't conflate the two! Also, please google whataboutism.
@@michaelhoffmann2891 You seem to forgot Al Qaeda and Taliban is funded and trained by USA. Also you don’t fight terrorist by declaring war on a country.
Terrorist organization by its nature is a non state player, going to war with a state is not going to solve terrorism. And what Bush did is exactly what you described, the US government decades long CIA black ops and generating misery in Middle East finally back fired. To divert attention, a war is needed thus a war is committed. Also only NATO went to war, it’s extreme narrow minded to think only NATO counties existed on earth.
And you dodged Iraq entire possibly because you can’t even found a half assed excuse for that war.
So when anyone brought up USA, your first response is use “whataboutism” to deflect the topic. You should google whataboutism and hypocrisy. Maybe use a brain this time.
@@royhuang9715 Is there a point to your diatribe? I'm not even American and don't live there. This thread is/was about the risk of China's authoritarian regime using external aggression to distract from internal problems as that wouldn't be unusual for such regimes. Focus on that and stop that whataboutism!
I live in Beijing and getting rid of the Hukou system isn't so simple. Without having more equal development across all of the different regions, millions of people will continue flocking to these urban hubs (Beijing, Shanghai, Shenzhen, and to a lesser extent Guangzhou, Chongqing, etc.). The thing is, the available public services in these places are already under a lot of stress and there's significant risk in expanding them to millions more people all of a sudden without doing something drastic to offset the burden.
This aged like fine wine
1:54 no one told me stark tower is an actual building in new york
Where did you think Iron Man resides?
@PNUTZ 2 - fmr. capnazrael
Wow cool! Good spot!
The air there looks like you'd have to chew it up before you could breathe it in.
California's the same in the mid afternoon
(Not an anti-U.S. thing, just a joke)
@@charliecoke7396
Naw China has smog what your thinking about is smug
It's the filter they used fir their videos.
@@yolandacui2571 no it's really that dirty
@@freddarau you've never been to China that's why. Stay in your dream then, it's more comforting.
Good explanation overall. There is one mistake that I wanna point out though: Because now the government generally provides you with a replacement unit when the old house is tear down, the price for the house paid is not "rent for 100 year" but a permanent asset at least for now before there is any policy change.
If you trust them to actually do that... After 99 years I would expect they'll just take the land back and resell it.
@@michaelf.2449At least you got it now
Another nice vid !!!! Very interesting ! The Housing bubble has been in the making for so long. Will it burst ? I have been living in China and when I get to see apartment prices, I don't really understand. A simple 2 BR with very questionable quality of construction at the outskirt of first tier city is more expensive than same apartment located in the heart of Ile Saint Louis in Paris !!!! It's just insane. And I am not talking about Shenzhen and Shanghai that are extreme cases...
houses in China are investment tools, not for accommodation any more. But the problem that the states try to stop the bubble will make that bubble burst.
You don't buy the "building", you buy the plot, the location. The physical cost of the building is cheap compared to the plot and location. Also, I once read the govt forbade owning empty plots, so plot owners build for the sake of legality.
@Cynthia May 70 years
It's an investment tool, but the problem is many of them are tofu-dreg project that won't last for more than 2 years.
People will in time learn that real estate investment in China is one of the risky investment with more tofu-dreg projects being shown again and again.
All bubbles will eventually burst, it just depends on how the CCP will go with covering it up
The sky looks pretty hazy. When I was in Beijing many years ago, when I looked out the window, I thought it was snowing, but it was coal dust.
me too, i was there in 2017 (?) to see all the sites, and outside my window i could see tiananmen square and the forbidden city, but anything beyond that was hazy.
Bad air quality.
Welcome to Shenzhen then. By the way, let me know which dry city host about 2 millions ppl don’t have some bad weather days? London? Beautiful Tokyo or New York? What I know it’s that even Apple new airdrop 3now have to assemble in China since India or booming Vietnam cannot,
@@tenid4824 I met Vice Premier Deng in the Great Hall of the People, but we didn't get chatty.
@@johnsoncao3114 no the air quality is so much better over in big US cities. We actually have air quality controls. Ngl China's pollution is so bad it's spreading to other countries.
The best thing about a video such as this is reading the comments. Where dozens contribute their snippets of knowledge. Allowing one to develop a much more accurate picture of the situation.
VS one man's research into a situation difficult to gather accurate information on.
It is important to watch out for the 50 cent army comments, and disinformation. But I appreciate those who have first hand knowledge.
The headline was ' why you should be worried' but the author never really said in depth why a US based accountant or barkeep making the medium household income with a wife and a kid and two dogs should be worried. Unless it was the ominous one-liner at the end: that the government will trigger a war to deflect criticism.
No person outside of China needs to be worried about a purely Chinese problem. The Chinese won't start a war, either. Come down from your trees, everybody. :-)
Now you need a HuKou to buy an apartment. Not the other way around. It was the opposite 20 years ago when you could get a HuKou with an apartment. But not anymore.
Exactly! And the bigger problem I feel with this channel is that this guy makes no efforts whatsoever to even rectify his mistakes in past videos or post clarification/updates... Unlike for example, science TH-cam channels like Sci show or 'in a nutshell'.
This blatent ignorance actually makes the information in his videos very unreliable.
Like @economics explained, if you're listening... Then I feel you, and anymore can make mistakes, but the fact that you're never willing to rectify them, even in prior videos, that's just sad.
Good to know!
“No ones gotten rich from betting against them... yet” ahem, The Big Short
That was the US, he is talking about China.
@@hassananwar9833 He's making a comparison ya genius.
How does an average Chinese citizen short a land lease which is really what it is. They don't own a deed like in the USA.
@@TrendyStone shitty comparison, by your logic you should take literally every gamble ever because "muh big short"
@@strawhatJ You still don’t get it. You probably shouldn’t be speaking in public.
China is a paper dragon. Unfortunately, that dragon is also filled with hydrogen.
Yeah, that's a _Hindenburg_ reference...
LOL that was funny.
At 8:28. Gotta love that NYC Chinatown stock footage in case you run out of real China stock footage. LOL. I immediately recognized that corner cause I lived only a few blocks from there. ;)
Australia's debt should be taken in context. It's superannuation and family trust wealth stands at about 400% of GDP. Also if half the people in China own a house and it is 46 times the average wage and the average wage is 5k then that is 500 million times 46 times 5000. That's 115 trillion US which is not 56% of GDP. It's more like 560%
Thank you economics bro. You dont realize how many sleepless nights I've had worrying about china's debt crisis. I am truly grateful.
That last line is scary. "When there's only one mob of politicians that you don't dare insult, fingers are going to be pointed outward."
Yikes. Wars have been started over less...
To be honest, I don't agree with that line. While China has had a long history of absolutist governments that would crack down on dissent, it also has a long history of dissent and both provincial rebellion and overthrowing of the entire central government. I can see political instability being aimed at Beijing.
@@UrVileWedge I agree and both are possible. That possibility is simply very scary, because right now NATO is very weak, with the train wreck administration in the US and Europe going full on authoritarian.
@@Keiranful Maybe someone will finally nuke the States for what they did to Japan, would be some poetic justice.
@@Illlium this was a reasonably intelligent thread until you showed up
@@silverhost9782 This thread had constructive comments until you've hit the keyboard, just like your mom when she dropped you on your head.