It’s Over: China’s Economy Is Finally Collapsing

Let's discuss China and the impact to the global economy, why Evergrande filed for Bankruptcy, how Country Garden could be next, and what this could mean for you watching - Enjoy! Add me on Instagram: GPStephan

The YouTube Creator Academy:

THE CHINA ECONOMIC CRISIS:

-High Youth Unemployment:
Higher education expanded faster than market demand - meaning, there are more college graduates than there are jobs to pay them - and, as a result, a high portion of Chinese Youth are unemployed. As it stands right now, “the jobless rate of 16-to-24-year-olds rose to 21.3%,” which has been steadily rising, each and every year since the survey was started in 2018.

China says that it’s a big “misunderstanding" - instead, they explain that the surveys used to collect the data just “need to be further improved and optimized." I'll let you be the judge of that.

-Real Estate Bubble:
China was building 5 TIMES as many homes as America and Europe (COMBINED) and, supply was still so limited that several cities used a lottery to allocate them, some with odds as low as 1-in-60. However, with demand slowing down, property developers had a harder time raising money to stay afloat. They couldn’t afford to finish their “pre-constructed” units, and even though this started with the property giant, Evergrande, ”Within four weeks, more than 320 projects in about 100 cities were facing protests, roiling markets and forcing authorities to corral banks and developers to defuse the unrest.”

-Currency Deflation:
When prices come down, it’s a sign of less demand - and, when your money becomes more valuable the longer you hold on to it, the less likely you are to spend it, which causes prices to fall even further, and starts the cycle all over again, until - eventually - companies scale back, produce less, and the economy falls. It's also said that “Chinese consumers are spending less, in part because a slump in housing prices has affected their savings, much of which are tied up in property. Jobs tied to housing that were once abundant are disappearing. And the uncertainty of how far the crisis might spread is leaving companies and small businesses afraid to spend.”

-A Shadow Banking Crisis:
One of China’s largest shadow banks is under a microscope after they missed their payments to 3 publicly traded companies. As for the official statement, a potential informant has said that “we can’t make any public announcement now…The main reason is that we are still actively checking our underlying assets, and we are trying our best to recover the assets for you. Now if we disclose the underlying assets for a certain product, it might cause a dramatic shrinking of the assets. We can’t do this because this is being irresponsible.”

The good news is that, thankfully, it appears as though the United States has very little exposure to the Chinese financial crisis. One analysis explains that, in the big picture, it’s estimated that the US controls about $215 billion dollars of direct investment in China, along with $300 billion dollars worth of portfolio investments, consisting of their stocks and bonds.

For comparison, the United States stock market is worth $46 Trillion dollars. The entire value of our housing market is worth another $43 trillion dollars. On top of that, it’s also said that China’s contribution to US trade is less than 1% of our GDP - so, it’s also unlikely to have a dramatic effect on our consumer demand.

My ENTIRE Camera and Recording Equipment:

[Chrn]

As tradition, when will the 2024 China collapsing video come out?

[wintersxiao]

yes yes yes we are collapsing since 1991 and we collapsed every year

[happyaccidents]

If this is what China publically says, then the situation is much worse.

[yanfang]

I am a Chinese, and I am very grateful to Graham and countless people like him. Thank you for your persistent and careful analysis and brainwashing your own citizens and rulers. Such great actions have existed for at least 30 years.

[renatlottiepilled]

Oh yeah, just so you now the Financial Times just reported that Chinese economy grew 5.3% this quarter, exceeding expectations

[senje]

It does not matter if their economy is collapsing. Because even while collapsing China growth rate still at 5%. I understand the title, 'China collapsing' is a feel good title for some China haters and to attract the same bunch for more views and give them some nice feeling.

[robbieross]

It’s really not. China has been “collapsing “ for the last ten years. I don’t foresee it happening anytime soon.

[chriswithersphotography]

I think the biggest concern is countries making risky moves that could lead to war. Desperation breeds ignorance.

[sanwalyousaf]

Chinese economy has been collapsing since mid 90s based on Wall Street's estimates

[huggybear]

That's what the top US economists said about China in the 60s and 70s, that they would remain rustic and poor. And this video is no different from those. Westerners are still making the same mistake of reading too much into China on surface value. Truth is, China doesn't play its cards according to routine.

[xuchilbara]

if you literally type "china" in his channels search bar, china was supposed to collaps literally every year since he was born xD xD

[DK-yzxk]

Lmao is there an official date they gonna fall?

[romanabramov]

You really should not post stuff before it actually comes out. It ruins your credibility if and when the collapse doesn’t happen.

[shanzhang]

As a Chinese I should say I like you and you kind of people so much. Most Chinese know that you could only progress when you are humble and willing to learn. Your words actually not affected China at all, you just make yourself as a fool. Please keep going, and prey do praise yourself, so we could easily find the points to learn from you.

[qoplon]

Finally thanks for the update! Im trying to hold a million dollars worth of ZED400X . Oddly enough its a sleeper for some weird reason that not many YouTubers talk about in regards to lnvesting. It has had steady growth since its release.

[ichbinbossule]

Interesting you mention ZED400X :) worth looking into given their dominance in the e-commerce industry

[thedon]

I will be stuffing my bags weekly. im currently at 3200 ZED400X and hoping to double that by yrs end

[triskelion]

People has been talking about the Chinese collapse since over 20 years ago and it still don’t happen. I’m from Colombia living in Guangzhou and I have lived in the US and Germany too, and I can tell you that everything here is working good. I haven’t seen a single homeless people, very very low criminal rates, no drug addicts or dealers, zero shootings, plenty of jobs, plenty of food, plenty of development going on etc.

In my opinion the theory of the Chinese collapse works very well since it gives hope to Americans that feels their country is going badly (which is true) but in reality China will be unstoppable in the long term due to many reasons I’m not interested to discuss or to convince anybody. Actually I like the fact of western countries constantly underestimating China to comfort themselves in their mediocrity.

Think whatever you want guys, reality will hit stronger than narratives.

[OitaOscar]

The same paranoia-to-panic cycle happened back in the 80s when the concern was the Japanese economy. First people were concerned that Japan was going to overtake the US (a highly unlikely prospect) then when the Japanese economy collapsed people panicked that the Japanese collapse will take down the US economy with it (another highly unlikely outcome). Then, as now, some analysts predicted war, bloodshed, and strife, none of which materialized.

[an_insane_rogue_ai]

I thought China was 29 days away from collapse when you made your video last year? Can't wait for them to be on the brink of collapse when you make another China video next year, and for them to still be about to collapse when you make a video the year after that