China's wheels falling off, page-5

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moorookamick

22,253 Posts.

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20/07/23

21:34

Post #: 68897994
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Originally posted by moorookamick: ↑
.With due respect, you don't understand the Chinese system
"Socialism (Marxism-Leninism) with Chinese Characteristics (permits private enterprise with limits)

If Evergrande goes fully belly up the State will simply take it over and add
it to its other SOEs because China being Marxist, it believes that Capitalism
(private capitalism ) contains within itself the "seeds of its own destruction."

As of the end of 2021 Evergrande's assets were 2.38 Trillion Yuan ($330 Billion USD)
which about covers its liabilities.

By Chinese scale Everglade's collapse is equivalent to the collapse of a medium sized
Aus property developer builder.

Keep in mind that China has $3.3 Trillion USD for foreign reserves + $1.1 trillion of
US Treasuries and about as much Gold reserves and inflation sub 2% so unlike
many western economies it has a warchest of reserves should it hit its delayed Covid
Recession.

Add to that its back door el-cheapo oil, gas, food & fertiliser imports from Russia
and its positioned well to weather the western bout of inflation caused by the
Ukraine War.

PS: It seems that its "Made in China" 2025 is already hitting Aus.
I bought 2 x tailight bulbs today (made in china) for $14.99 and
two years ago similar bulbs were $5 !

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China Foreign Exchange Reserves Data
Indicator Data Period
1 Gold Reserves 2068 Tonnes 1Q/23
2 Foreign Exchange Reserves 3177000 USD Million | 3177 B USD May/23
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