The 2nd largest economy on earth is sh*tting the bed

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by 78thusername

2/3rds of China is experiencing extensive blackouts.

The driving force is a lack of quality coal because they hate Australia layered on top of a central controlled electricity price and a market price for local coal. It costs more to make power than they get from selling it. The other issue is the quality of coal from sources other than Australia is low and most power facilities have been tuned to operate on Australian coal.

They reportedly have 10 days of coal on hand and are finding it incredibly difficult to import enough to deal with the shortage.

Luckily Australia are experts at pissing then off so there zero chance they’re going to import Australian coal.

3% drop in GDP this year due to massive power black outs.

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Huge amounts of factory districts are being forced to operate 2 days a week. Impact on global production is ramping up.

Huge cuts to steel, aluminum and cement production.

Add on the rolling lock downs and port closures, credit crunch, constant stream of companies leaving China, Evergrande/property developer collapse and inability to access lines of credit due to the “3 red lines”, massive unemployment rate 160-360 million unemployed/under employed.

Also the birth rate has tanked 12 million last year out of a population of 1.4bn, marriage rate has also tanked…

The chip shortage in China has cut car production in half and there recycling old chips illegally on a grey market.

Salaries are being slashed across the board. Construction is the largest employer and it’s in free fall due to 68% of property developers not passing the “3 red lines” and finding themselves unable to access credit to keep projects moving. Making Evergrande a state control company means all because it’s the metaphorical tip of the iceberg.

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Shit’s getting spicy… maybe this is another soviet union collapse style situation.

Either way the implications are massive and rancid. Stock market might be about to get kicked in the teeth. Maybe this will finally pop the everything bubble? Anyone got any spare ramen?

Nomura securities in Japan are expecting huge ripple effects. LETS GO CONTAGION LETS GO!!!

My gut tells me to find manufacturers with all to zero Chinaside manufacturing.

That inflation tsunami be rolling in perhaps.

Exciting times indeed.

What do you humans think?

Also candle sales are up 10x

www.bloomberg.com/news/articles/2021-09-27/china-s-power-crisis-moves-from-the-factory-floor-to-the-bedroom

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