WTF Just Happened To China's Economy?

"China's latest stimulus package is about to impact every Financial market around the world from Real Estate to lending to interest rates to even the value of the US dollar."

"in the last 30 days they've experienced one of the strongest stock market rallies in almost a decade all thanks to a new strategy the economic reset"

"apparently money can solve all of your problems and even though some analysts believe that this only delays the inevitable China's latest stimulus package is about to impact every Financial market around the world"

"as a result of that money poured in countries from around the world invested in Chinese infrastructure took advantage of lowcost Labor and helped them bring much needed funding to areas that were previously closed off at this time growth was so impressive that in 2001 China became a member of the World Trade Organization"

"400 million people were lifted from poverty in addition to that their economy is now more than 11 times larger today than it was in 2001 they became the world's largest exporting nation in 2009 and they were even touted as the world's economic Miracle while they grew at a faster Pace than any other Nation"

"China's real estate market was growing so quickly that prices increased 700% from 2001 to 2 17"

"after owing more than $300 billion to its investors an estimated 233 other property developers filed for bankruptcy shortly afterwards"

"as it stands right now the jobless rate of 16 to 24 year olds is currently 18.8% and that's been steadily Rising since the surveys were started in 2018"

"China's citizens are afraid to spend more money because of strong economic uncertainty especially everything that's happened with falling real estate prices Bank runs and high unemployment this of course means that China is falling short of their 5% GDP growth goal"

"China's solution to a slowing economy is the tried andrue method of printing a lot of money"

"the People's Bank of China moved forward with two funding proposals that would inject about $112 billion into the stock market in terms of specifics it said that they were lower interest rates to make borrowing money cheaper lower mortgage rates for homeowners benefiting 50 million households and lower the requirements for how much money Banks need to keep on reserve freeing up $140 billion"

"it also set aside $28 billion for local government investment projects this also includes lowering down payments for buying second homes often purchased in China as Investments which would be cut to 15% of the apartment's value from 25%"

"Beijing plans to release $284 billion in Sovereign bonds later this year to provide funding to pay down local government debt and boost China's social safety net"

"government officials are pushing for a much bigger stimulus package potentially as high as $1.4 trillion otherwise the economy may fall off a cliff"

"the stock market having increased over 20% in the last month"

"but it's important to acknowledge that a large portion of this rally is due to the optimism that China will enact even more stimulus in the future rather than from existing policies already in place"

"reducing bank reserve requirements Now Banks don't have to keep as much cash on hand allowing them to lend even more but is this a good idea if they face a liquidity crisis and customers all come demanding their money at the same time perhaps this is a lot riskier than it seems initially it's also said that in the coming months the central bank was ready to make another Reserve cut potentially doubling the extra money available for Lending"

"to me this is really no different than the economy slowing down printing more money to get the economy going again and then kicking the can a little bit further down the road until eventually they're going to have to start the process over again"

"nothing that says they can't just print more money indefinitely and as long as investors keep buying in for a quick profit this could last for a very very long time"