There is a massive debt bomb that is about to explode in China that is increasingly likely to devastate the country’s economy in a way that would rival the Great Depression in 1930s America.
According to reports, Chinese homebuyers are boycotting their mortgage payments, which led the ChiCom government to scramble in order to avoid an economy-destroying collapse in what is the world’s largest asset.
Additional reports claimed that some suppliers to Chinese real estate developers have also stopped paying on their bank loans because they are not being paid for bills and other debts owed to them, “a sign that the loan boycott that started with homebuyers is starting to spread,” Zero Hedge reports.
The site adds:
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In a jarring case study of what happens when a ponzi scheme goes into reverse, hundreds of contractors to the property industry complained that they can no longer afford to pay their own bills because developers including China Evergrande Group still owe them money, Caixin reported, citing a statement it received from a supplier Tuesday.
Similar to homebuyers who have taken a stand and refuse to pay for properties that remain uncompleted, one group of small businesses and suppliers circulated a letter online saying they will stop repaying debts after Evergrande’s cash crisis left them out of pocket.
“We decided to stop paying all loans and arrears, and advise our peers to decline any requests to be paid on credit or commercial bill,” said the group in the letter dated July 15, which was addressed to the developer’s Hubei office.
“Evergrande should be held responsible for any consequence that follows because of the chain reaction of the supply-chain crisis,” the letter continued, according to Zero Hedge.
The outlet went on to cite Bloomberg News which stated: “[T]he payments protest is the latest sign of how a movement by homebuyers to boycott mortgages on unfinished homes in China is spreading to affect other sectors in the economy.”
Zero Hedge further explains:
Yes it is, and it’s also why Beijing should be freaking out (if it isn’t), because what is taking place in China is far worse than what took place in March 2020 when the global credit machinery ground to a halt, only back then it’s because there was no other option, now it’s a voluntary development and not even fears of reprisals from China’s ruthless, authoritarian, Lebron-beloved dictatorship is stopping millions of people from calling for a systemic boycott, one which can topple China’s entire $60 trillion financial system in moments.
“The development underscores a dilemma for Xi Jinping’s government as it grapples with who to bail out as the country’s property crisis deepens: Relief for some borrowers could prompt threats of non-payment by a whole host of others,” Bloomberg News added. “While bending to demands for support could put a strain on state finances, ignoring them might lead to a spiral of defaults as more and more borrowers refuse to meet their obligations.”
China remains the world’s second-largest economy at roughly $17 trillion annually, behind the nearly $23 trillion U.S. economy (which would be trillions higher if we weren’t being led by a left-wing Democrat mob that hates fossil fuels) and well ahead of Japan’s No. 3 economy at around $5 trillion. So, if the Chinese economy were to collapse, you can see how easily that collapse would spread around the globe, especially since the Chinese make so much of what consumers all over the world use on a daily basis.
The Zero Hedge report noted further that the homebuyer mortgage boycott began in earnest in June, but it has spread to building suppliers as well — around 301 companies located in 91 cities. And it’s only going to get worse, so plan accordingly.
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Will America-First News Outlets Make it to 2023?
Things are looking grim for conservative and populist news sites.
There’s something happening behind the scenes at several popular conservative news outlets. 2021 was bad, but 2022 is proving to be disastrous for news sites that aren’t “playing ball” with the corporate media narrative. It’s being said that advertisers are cracking down, forcing some of the biggest ad networks like Google and Yahoo to pull their inventory from conservative outlets. This has had two major effects. First, it has cooled most conservative outlets from discussing “taboo” topics like Pandemic Panic Theater, voter fraud, or The Great Reset. Second, it has isolated those ad networks that aren’t playing ball.
Certain topics are anathema for most ad networks. Speaking out against vaccines or vaccine mandates is a certain path to being demonetized. Highlighting voter fraud in the 2020 and future elections is another instant advertising death penalty. Throw in truthful stories about climate change hysteria, Critical Race Theory, and the border crisis and it’s easy to understand how difficult it is for America-First news outlets to spread the facts, share conservative opinions, and still pay the bills.
Without naming names, I have been told of several news outlets who have been forced to either consolidate with larger organizations or who have backed down on covering certain topics out of fear of being “canceled” by the ad networks. I get it. This is a business for many of us and it’s not very profitable. Those of us who do this for a living are often barely squeaking by, so loss of additional revenue can often mean being forced to make cuts. That means not being able to cover the topics properly. Its a Catch-22: Tell the truth and lose the money necessary to keep telling the truth, or avoid the truth and make enough money to survive. Those who have chosen survival simply aren’t able to spread the truth properly.
We will never avoid the truth. The Lord will provide if it is His will. Our job is simply to share the facts, spread the Gospel, and educate as many Americans as possible while exposing the forces of evil.
To those who have the means, we ask that you please donate. We have options available now, but there is no telling when those options will cancel us. We have our GivingFuel page. There have been many who have been canceled by PayPal, but for now it’s still an option. Your generosity is what keeps these sites running and allows us to get the truth to the masses. We’ve had great success in growing but we know we can do more with your assistance.
Thank you, and God Bless!
JD Rucker
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