China’s 40 year boom is over? China is on the verge of a credit event

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‘JUST IN: China to cut interest rates on $5.3 TRILLION of mortgages to support their economy.

The last time China did this?

In the 2008 financial crisis.

The move comes just after they cut taxes on stock trades and considered banning short selling of stocks.

Is China on the brink of a credit event?’

China is flashing new signs of financial stress almost on a daily basis, with a property giant making fresh efforts to avoid default and a state-run bad debt manager suffering a bond slump on worries about its own health.

China’s Financial Crisis Could Be as Disastrous as the 2008 Global Crisis

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China: Many local governments can’t even pay their wage bills. They can barely keep functioning.

“China’s 40 year boom is over”

Much of the economic data from China has been massaged into being meaningless, much like the USA. Remember when China had annual GDP growth of 7% like clockwork?

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There is a lot of evidence that China has overreported their economic growth over the past two decades. Always adding an extra few % points to make the numbers look amazing for political purposes.

There is no way to truly know how big the Chinese economy actually is. We have a few proxies such as measuring their commodity imports. Studies that try to figure out the true data indicate China’s economy may be about 20% smaller than they report.

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