China’s growing debt crisis is mostly ignored. And yet, it will have profound negative effects on the global economy.
China’s domestic real estate bubble, due to deregulation, is so gargantuan that much of its middle class has been damaged.
Today, 50 million empty or unfinished units bought on “speculation” in hundreds of urban areas may never be completed or paid for. A massive mortgage revolt is underway, and as banks fail, protests grow.
Beijing is owed $1 trillion by struggling governments worldwide that cannot afford to pay back loans for Belt and Road Initiative projects. The result of the property bubble is unusual defiance by Chinese people toward their authoritarian government.
Police violence against peaceful protesters across the country. Unrest has grown because real estate speculation has been widespread for years, and most Chinese consider property ownership as a way to get ahead and secure an adequate retirement income.
Beijing is blamed, along with local governments, and all mention of these troubles has been censored.
But unrest spreads by word of mouth, a dangerous development in a country of 1.4 billion people, where putting deposits and owning several condos had become commonplace. In rare acts of defiance, Chinese gather in public to object to the situation, and millions refuse to repay loans on their unfinished apartments.
This massive mortgage boycott movement began in early July and has now spread to 100 cities.
“China’s real estate slump has sucked in both banks and provincial governments, threatening a bigger impact on the world’s second-largest economy,” reports Nikkei Asia.
“Defaults have soared over the past 12 months.”
Hebrews 13:5 Let your conversation be without covetousness; and be content with such things as ye have: for he hath said, I will never leave thee, nor forsake thee.
Matthew 6:24 No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and money.
Matthew 6:19 Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal:
Matthew 6:20 But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal:
Matthew 6:21 For where your treasure is, there will your heart be also.
Read more at: https://www.transformedbythetruth.com/a-global-economy-in-growing-danger-of-a-depression/
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Read more at: https://www.transformedbythetruth.com/chinas-real-estate-bust-is-a-ticking-time-bomb-for-the-world/
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