China Needs an Economic Lifeline
(00:00.298)
Yeah, we told you this one was coming. Uh, Evergrande, which is this massive, was the largest property developer in China. It has been ordered to liquidate. Yep. Uh, this has been going on for, for well over a year now. Long time listeners know we told you that this was going to happen. Um, they tried to reach some sort of deal over the weekend. They defaulted on its dollar bonds.
The entire real estate sector in China is a mess. There’s a quote here and I got this from the journal. The time is for the court to say enough is enough. This is in the Hong Kong High Court. Evergrande was given another adjournment in December to come up with a new restructuring deal. They couldn’t do it. None of that happened. What does this mean? It was China’s largest real estate…
Developer it’s got some 300 billion dollars in liabilities stop paying on its debt two Years ago, and it’s not the only one in china now again Opportunity again china is that their economy is a mess This is one of the this is an economic collapse that they’re going through right now. That is uh,
(01:27.152)
It’s hiding in plain sight. Sure, you’ll get the occasional story on the business networks, but for whatever reason it may be, I don’t understand how they can’t manage to put two and two together, just how bad things are over there. And I’m sorry, Z’s position right now is not as strong as everyone is making it out to be.
They’re openly calling for people to do things and people are basically giving the government the finger. I’m not going to do that. I’m not going to buy that. I’m not having more kids. All of these things that normally, again, it’s a very different culture without it. That’s a proud culture and again, you can’t discount that. But what you can see is that it’s falling apart.
at the seams right now get offering an opportunity for us to have a bit of reproach and people say well why would we do that well um china was approached china was approached during uh this is right prior to the beijing olympics in 2008 was approached by russia to mess around with us and we knew our problems going on with the financial
crisis and Russia basically told China, hey, so you know what you should do? You should start unloading all of this American debt, cause another problem that you have. And they chose not to do so.
They didn’t do it. They didn’t listen to Russia on this. Again, I think we could end up being, if we’re smart, we’re smart and we don’t listen to the, you know, the super hawks that are out there when it comes to China. I’m so sick and tired of hearing about it. You’d rather make them, you’d rather bring them in and make them closer, use this opportunity. I, you know, again, I’m not,
(03:29.95)
sure how, I don’t know if it’s helping out now in regards to tariffs trying to strike some sort of deal. To me that that’s a much better route than where the hawks are taking us and again you want to be doing business as much as possible. Not less of it, but more of it. Yes, do we understand supply chains? Yes, do we have to
Again, when it comes to certain minerals and the types of things that we’re buying from batteries and whatnot, a lot of that comes from China. And if we’re going to continue to force cars, EVs down people’s throats, we need to have more of that here. I don’t agree with that. But if you’re going to do it, you might want to have more of these supply chains here. I understand all that. I get all that. People have been divesting from China for some time. Everybody’s been doing it all around the globe. We get that.
But their economy is coming apart at the seams. Would you throw them a lifeline? My opinion, yeah, I would quite frankly. Watchdog on wallstreet.com.
