• China – Why worry about them?

Late last week several reports came out about China and their failing economy. Worst of all…how it would affect the global economic situation which is already tenuous at best. Business Insider reported on the 19^th that China is suffering from weak consumer demand and property instability; they go hand in hand. Weak consumer demand comes from far less money in the pockets of their citizens due to widespread layoffs…which comes from a significant downturn in demand for Chinese goods globally. And that my friend comes from a notable drop in money in consumer hands worldwide.

Now, the property instability…why do you think that is? Yup, much, much less money for individuals and especially companies to buy property. Why? Less money due to the same thing…weakening global demand for Chinese goods…because less money available worldwide for people and companies to spend.

Back in December 2021 I wrote about a Chinese property development company called “Evergrande.” < click here to read that post > I spoke then that they were in financial trouble. Well, on the 17^th of August they filed for bankruptcy…in New York. The Evergrande Group was China’s second largest developer and one of the largest in the world. And since Evergrande’s filing three more of China’s largest developers have now also defaulted on their debt. Those defaulted companies alone have seriously destabilized China’s economy…especially in regards to homeowners and lenders. Why? The property sector of the Chinese economy represents about 30% of the entire Chinese economy.

So how does this affect the US? China has, for the third straight month, cut its holdings of US debt…to a decades old historic low. And that has caused US bond prices to tank. And…it has become clear that China has also made this move to help weaken the US Dollar as the global reserve currency. Finally, let us not forget…China is the second largest economy in the world…almost as powerful as the US economy. What do you think all of this means…to the US…to the world…to you?

• How’s it going with the US economy?

Last week corporate bankruptcies have doubled those in 2022.Why? The Federal Reserve raising interest rates…and FAR LESS money in US consumer pockets to spend.

And US home mortgages have hit new highs significantly affect US housing market…but in a weird 1-2 punch way. Fewer people can buy residential homes resulting in a higher demand to rent. So huge property management companies are buying up historic numbers of residential homes to rent out to people who can’t afford to purchase homes…and that drives up home prices…coupled with high mortgage interest rates makes it hard for potential home buyers to purchase homes…increasing the demand for more rentals. And what cause(s/d) all of that…the Federal Reserve raising interest rates..and the Fed is a primary mover in the World Economic Forum (WEF).

And so people can’t afford homes more and more…while large corporations get richer and richer off of rental income and increasing home values…and the owners of the those corporations get mad rich. Oh, and those owners are the same folks who are part of and/or support the WEF.

How do we know people are getting poorer? Auto loan application rejections reached an historic high last month based on poor credit due to high debt to income levels. Oh, and personal bankruptcies are hitting highs. Oh, and now over ½ of Americans can’t pay off their credit card balances each month…another historic high. But enough of what you already know.

• And what would it be without a little info on Bitcoin?

Last Friday’s economic headline, “Bitcoin Calm Shatters With Sudden Tumble, Mass Liquidations.”

Yeah, the report went on to talk about huge sell-off of Bitcoin…I mean big time! Bitcoin is down 14% since June 1^st.

But let’s be nice to Bitcoin…it is up 57% since 12/1/2022. But then again…Bitcoin is down 57% since October 1^st, 2021.

Had you invested $100,000 in Bitcoin on October 1^st, 2021 (less that 2 years ago) you would have a whopping $43,000 left in your Bitcoin account now!! Great investment, eh? Well, as long as you weren’t one of the thousands who have lost billions of $’s through Bitcoin theft, fraud, or hacking. Gotta love that cryptocurrency…an efficient and fast way to lose tons of money.

• Did you read my article on 8/17? You might want to.

RedRusher had this to say about the article < click here to read the article >…

“The usual great article. This is the ending sentence: “Please talk to your family…see what you can do to get your financial house in order…do something…PLEASE.”

Whatever happens, truer words (nor better advice) have ne’er been spoken.

I join AH in that call. I’ve been trying to persuade many extended family members and some friends to get ready for the whirlwind that approaches.

I don’t know if the big financial whirlwind will arrive this fall…or in 2024…or 2025, 26, 27, 28, 29 or 30.

I do know that the WEF thinks they’ve got a lock on The Great Reset being firmly established and completely entrenched by 2030. So, it does seem likely some major problems coming by 2027 or so, if their timetable is to be met.

Better prepared a couple years early, than a single day too late.

BATTEN THE HATCHES, FOLKS! ROUGH WEATHER COMING!”

< click here to read the article >

 

 

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