So this company has been racking up 300 billion dollars in debt for 2 decades right? Sure, houses/buildings that aren’t finished.
Why isn’t Evergrande bigger news right now?
Feds propping up the US economy, along with other countries doing the same (although England and New Zealand beginning tapering and rate hikes.
How much money has the US Federal Reserve pumped into the economy since March 2020 relative to pre-pandemic economy vs other major countries like China, England, New Zealand.
If the dollar inflation is higher relative to other countries, banks need to make riskier and riskier decisions about how to grow their clients money. Real estate bonds might do the trick.
I feel like China will take a hit from the whole real estate bonds becoming worthless but, the US had more to lose as they’ve been footing a part of China’s real estate bill that’s now due.
Smart, play nice enough not to get sanctioned too much, allow foreign investments for over 2 decades, being completely aware that the US has been and is still going brrrr with the printers.
Then, simply let in house real estate giant Evergrande crash and burn, initiating a crash our the world.
Of course less jobs for Chinese people, but digital coin stimulus, tracking: hyper aware of it’s people psychology, swallowing and owning giant corps will allow more control over economic conditions, creating demand for Chinese currency. After printing a “backed” digital currency, they can slowly taper and… No need to raise rates. Why? Because they will own the banks if they don’t already as well as strict regulations on hedge funds.