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welcome to Crossroads the banking system in China is starting to collapse and as this happens there’s growing concerns it could have a ripple effect not just the Chinese markets but also throughout the global economy in a single week in June this year 40 banks in China closed down and were absorbed into bigger ones the Chinese Communist party has proposed solution to this well very likely it’s going to make investments in China much less appealing especially in a time when they’re already drisking in other words pulling out of China and meanwhile firms that have tried showing what happened and what’s going on with the Chinese economy they’re now seeing themselves targeted by the CCP and all these incidents are raising growing questions over the stability of the Chinese economy and frankly what it could mean for the world now first let’s have a look at the vanishing Chinese Banks The Economist said this they said the Savings and Loans crisis terrorized American banks for years starting in the mid 1980s a mix of aggressive lending growth poor risk controls and a property downturn contributed to the collapse or consolidation of over 1,000 small lending institutions and they note that China’s smallest banks are now suffering from many of the same ailments but until recently few have collapsed or merged with others and that is starting to change they said they said in the week ending June 24th 40 Chinese Banks vanished as they were absorbed into bigger ones not even at the height of the SNL crisis the one in the 80s in the US did lenders disappear at such a clip and know that China’s Regulators have been trudging through various reforms and consolidations for years and that since 2019 several mid tier banks have collapsed they not that powerful investment managers and state financers have melted down but it is small rural banks that provide the most complex problem and why is that well they say that some 3,800 such institutions dot the Chinese Countryside and they have about 55 trillion Yuan and assets 133% of the total banking system in China and have long been mismanaged AC crewing vast amounts of bad loans many have lent to real estate developers which you know that’s going around China and to local governments which are also feeling the brunt of some of this it notes that gaining exposure to Chinese property crisis now unfolding and in recent years some have revealed that 40% of their books are made up of nonperforming loans cleaning up this mess is an extremely delicate task it says many banks were established in order to serve small businesses especially in China’s poorest areas and those stuck with toxic debts it says struggle to supply firms with new loans which can hurt vulnerable companies and Local Economic growth the worst performing small banks have already threatened social stability the main concern of Xi Jinping China’s leader now it notes that fraud on a large scale caused several to freeze withdrawals in 20122 which Drew depositors onto the streets of a provincial capital you might remember people wanted their money they were demanding it they protested the CCP arrested them I’ll get into that in a bit but it notes further in that state intervention is risky rumors of distress restructuring or consolidation can lead to bank runs already happening by the way now look on the bad loans in particular this has been a growing bubble for a long time in China and you know one of the main methods that the CCP was using to prop up its economy was Mega projects the ghost cities you might remember those right the giant cities they’re building in China that nobody lives in empty buildings empty skyscrapers the whole nine yards the highways and the trains that go to Nowhere uh they build for example like superhighways that just lead to basically nowhere places nobody lives they build airports in these areas that nobody uses and there’s a reason for this these massive infrastructure projects were the way the CCP was you know using essentially to try to pump money into the Chinese economy and the idea is pretty simple right they say that well you take bank money give loans out you pay developers and others for the projects you know the companies doing the constructions the businesses that move in and basically build the whole thing those people then go on to hypothetically spend that money and when they spend the money well what happens the money flows through the economy and the country gets more wealthy at least that’s what they thought the CCP had some real problems with this one problem is that well a lot of Chinese people other than the super wealthy a lot of them have lived through various CCP social revolutions purges you know the cultural revolution a lot of them have seen what it’s like when things go bad and so they don’t want to spend their money they sit on their money they don’t make it flow within the economy like the CCP wanted they put it in the bank and sometimes the ones who have a lot of it don’t dare put it in the bank because another problem is that people who had a lot of money and knew how the system worked they knew the corruption they knew the games and the funny numbers and so on well they tended to not want to keep their money in Chinese assets they don’t want Yuan they don’t want Chinese currency so what do they do well they put the money into things like foreign real estate this was one of the reasons why you have Chinese people or they’re oftentimes the children of wealthy Elites coming to the US or Canada or other countries and they buy up real estate they buy diamonds or US Dollars even they just you know convert their money because they don’t want to keep the money in China they don’t see it is stable for their Futures and so a big chunk of that plan to get you know money flowing internally within the Chinese economy it didn’t work and notably that’s one of the reasons the CCP even rolled out the digital U on because they don’t want Capital outflow they don’t want money leaving the Chinese economy but there’s also other issues you know corruption for example and when the when the CCP delegates money for a mega project the way it often happens is this every single person at every single step of that all the way down to the developers of the bottom they all take a bit of cream off the top they take a bit of money off the top right one one for the patient one for the doctor and is the money flows downward well often times there’s not even enough for the Mega projects this is why you have what they call tofu buildings buildings where you can take your finger and stick it through a wall or you know just swipe away at a beam holding up a big skyscraper it’s because of this the corruption they took money away from the projects to the extent that the projects themselves well nobody wants to live in them they’re not stable but there’s also other things probably the biggest problem of them all in fact the problems of the banks and the loans themselves because look you know normally it’s maybe a good plan you know depending on how you do it if you for example Finance the construction of houses or a big housing project you know in the US for example well you know typically they sell you’d expect people to buy them at the very least the banks buy them or investment firms because they want the assets but what happens if people do not buy them well what happens then is that you spend a whole bunch of money on it and you have the debt but there’s nothing to pay back that debt because you did not make money off the project and because of that of course what has happened is that debt has built up over these bank loans that have been used to build these projects often time it’s the local governments that for example take out the loans to do these Mega projects and because of this the banks themselves have just been taking it on the chin and it’s this crisis that’s now causing the market to reach the furthest limits of this bubble this housing bubble that’s already bursting right the housing bubble is burst the manufacturing bubble is bursting and as these are bursting the banks are the next domino in that line now add to this the other problems again of the housing market crashing the CCP getting embroiled in trade Wars the Aging population younger people people just you know kind of checking out of the workforce they don’t want to be part of the game anymore well take all this into account and you’re looking at the Chinese economy itself being pushed to the brink you know right alongside a banking crisis that even by itself could level an economy but with the Chinese crisis happening right now with the banking system it seems the banks and everything else with all this right The Dominoes in that whole line the banks right now are taking the brunt of it they’re taking it the hardest now remember we talked before about how China was facing possible economic collapse and those of you who’ve been watching Crossroads for a while know that I was talking about this before covid at the time you know 2019 era roughly at that time there was also a us China trade War the ccp’s economy was also crumbling and what was happening because of that it was causing Mass protest there was social unrest there was the protest in Hong Kong for example you had people on the streets of China wanting change the CCP cracked down on them Hong Kong lost its freedom and then Co hit and when the world lock down for covid notably on the recommendations of the China model which the who was taking as the model for the world and recommending the lockdowns happened the Chinese Communist party then came out after the whole whole world locked down their economies and the CCP declared that they fixed everything and they were building back and because they were building back they declared that then was the time for foreign investors to start pouring money back into the Chinese economy because hey you’re going to make money through the process well it didn’t really happen that way the big problem they had is of course well they didn’t really change anything and they kept locking down and then other issues started up and the economy started going south but the big problem now is we see The Return of these problems which never really went away you know aside from the rest of the world probably not wanting to shut down their economies again which the CCP would probably try to use this particular crisis the return of the 2019 impact the one that’s been deferred a bit because of foreign investment this is now impacting the banks and the investors themselves in other words the CCP doesn’t have a way out of like they did last time niik Asia notes multiple Chinese listed companies have warned investors of a potential Fallout from the latest move by the Liquidator of jangu Enterprise Group that’s a bankrupt wealth manager in Shadow Bank caught up in the country’s property crisis it notes in an official report statement last Friday Beijing da Chung Law Offices the Liquidator of the case appointed by the court through an open bidding process process applied to consolidate jangu and 247 related companies as a single entity in pursuing the ongoing bankruptcy process he notes the court documents include da Chung’s description of the jongi group uh companies is having a complicated connected party relationship with quote widespread asset distribution enormous liabilities and their corporate personalities being highly confusing it notes that by Monday evening nearly 10 listed companies had expressed concern over how the move could affect the equity Stakes some of the affected entities hold in them in other words again this is going to impact investors now look on the surface the problems look pretty serious even for the CCP to allow information on an economic crisis like this to let it get out to let the whole world see it that is rare especially when it’s making foreign investors wary of putting their money back into China this goes against the interests of the party and so why are they doing it well I’ll be talking about how the ccb’s own censorship is suggesting that the economic problem in China could actually be even worse than what they’re saying all this though after we come back from a short break experts agree one of the best ways to protect against Financial uncertainty is to diversify your portfolio learn how physical gold and silver can secure your retirement funds from today to’s economic challenges with a gold Ira from American Harford gold you can Safeguard your wealth with no penalties or taxes when you transfer your current qualifying retirement accounts call now and our precious metals Specialists will send you a free information kit no cost or obligation American Hartford gold a trusted industry leader with an A+ from the Better Business Bureau has a five-star rating from thousands of happy clients whether you are getting physical precious medals in a gold Ira or delivered to your doorstep we offer only the highest quality gold gold and silver for your peace of mind we also offer a no fee buyback commitment a low price guarantee along with free shipping and free insurance so don’t wait call the number on your screen today and secure your financial [Music] future welcome back the Chinese Communist party is facing a massive banking crisis now in a single week in June as we mentioned 40 banks in China CL down and there is now growing concerns that this crisis will spread to the global economy this is not just a China issue now on the surface the problem looks pretty serious you know look for the Chinese Communist party for them to even allow information on an economic crisis to get out like this to be seen globally to be seen by Foreign investors especially since it’s making foreign investors wary of putting money back into China when the CCP needs that because the CCP is hurting for that money right now not only because of the banking problems but also because of the trade Wars and other issues but in reality the problem is very likely even worse than what we being shown on the surface you know the surface picture is in the context of the ccp’s cooked numbers the 5% GDP growth hoax and the other claims that frankly a lot of countries and investors have learned over the years that you just can’t trust when it comes from the CCP but even more telling at least in my opinion is the censorship and why is that well because under current Chinese law including some recent changes you are not allowed to question the ccp’s claims on the economy if you say something that contradicts these surface numbers you can go to jail and the CCP is get been getting even more authoritarian on this very lately suggesting they’re trying to cover something up now take for instance the people who went and protested when the banks were having issues and they wanted to get their money out of the banks well what happened the banks in China refused to give people their money many people in China protested over this many of them were arrested and now some have been outright disappeared Reuters said this when o Yong Yun traveled to the Chinese city of jenjo in February to demand recomp Pence after his bank account containing tens of thousands of dollars was frozen his family expected to be home 2 days later to celebrate the Lunar New Year kind of like their equivalent of Christmas it’s the biggest holiday this 5-year-old Twins and it see small business owner from Chang sha never returned o who’s 39 and more than a dozen other victims of China’s biggest banking scandals had gathered outside a train station in Hon’s provincial capital and they said this hen on banks return our savings they shouted that footage of the protest obtained by Reuters showed this in fact and it notes this dressed in winter coats the group wandered about the street for about 30 minutes until one of several unidentified men who had been tailing them shouted close the net and the protesters were pushed onto a bus and delivered to a police station according it says to two people who with direct knowledge of the matter and know that most were released after several days in detention during which they were sered moldy food and had limited sleep but oh this individual and two others defrauded depositors right these people who are defrauded by this are still being held by Jen jaao police the two people said now it doesn’t end with that in fact there’s also the auditing firms now you know normally if there are companies publicly traded on the stock exchange well you know they can be audited investors need to be sure the numbers are real they need to make sure they’re not getting pulled into a Ponzi scheme or something you need to make sure that if a business says it’s making a certain amount of money that they’re telling the truth and that’s the way the stock market Works normally there need to be some accountability but in China the Chinese Communist Party outright blocks audits of many companies even some in the US Stock Exchange for example now you can take what was said last year about some of the problems in China Reuters noted in May of 2023 this they said the US public Company accounting oversight board pcaob found unacceptable deficiencies in audits of ustic companies performed by KPMG in China in price Waterhouse Coopers in Hong Kong the government the government agency said on Wednesday at the time again last year and notes the US audit Watchdog published the findings of its inspection after gaining access to Chinese company auditor record s for the first time last year following more than a decade of negotiations with Chinese authorities it took them you know more than 10 years or around that to be able to properly audit these companies and even that’s based on what they were given and it notes the deficiencies were so great that Auditors failed to obtain sufficient evidence to substantiate company financial statements and notes that pcaob chair Erica Williams told reporters this on Wednesday against last year and it’s the two firms represented 40% of the market share of us listed companies audited by Hong Kong and Mainland China firms she said in other words it’s a black box the CCP prevents proper oversight they prevent audits you can’t actually figure out if they’re even real or not if they’re making the money they claim they’re making many people would claim it’s a Ponzi scheme with some of these companies but since then well things have actually gotten worse the Chinese Communist party now they’ve enacted new rules that make it a crime if you even criticize the Chinese economy New York Times said that China’s top intelligence agency issued an ominous warning last month about an emerging threat to the country’s National Security Chinese people who criticize the economy they note that in a series of posts on its official WeChat account the ministry of State security kind of the ccp’s equivalent of like the CIA and FBI combined it says they implored citizens to grasp president XI jinping’s economic vision and not be swayed by those who sought to quote denigrate China’s economy through quote false narratives and what happens if you do that well they note that to combat this risk the ministry said security agencies will focus on strengthening economic propaganda and public public opinion guidance meaning they’ll tell you what to think they’ll tell you what to say it notes that China is intensifying its Crackdown while struggling to reclaim the dynamism and Rapid economic growth of the past now in notes as well Beijing has censored and tried to intimidate renowned economists Financial analysts investment Banks and social media influencers for bearish assessments of the economy and the government’s policy in other words if you question it if you criticize it if you speak the truth frankly the CCP is going after people for this it notes as well that in addition news articles about people experiencing Financial struggles or the poor living standards for migrant workers are being removed the Chinese Communist party is censoring deleting threatening anything any any individual any information that would show the truth of what is happening with the economy right now now like part of this is being enforced by the CCP through vague and Broad revisions to the Communist regime’s law on guarding State Secrets Al jazer said this in may they say the changes to the law on the guarding of State Secrets enacted on Wednesday at the time come as president XI jinping’s government steps up the focus on National Security including by updating China’s anti-espionage law and increasing the the scrutiny of firms with foreign ties it said this has included police raids on consultancies and arrests of foreign Executives on Espionage charges and further in it states that changes brought to the law by China’s top legislative body in February broadened the scope to include work Secrets as they call them information it says that does not amount to State Secrets but could cause quote adverse effects if Le for example people don’t want to invest in China it says the revisions also require internet companies to crack down and cooperate with investigations into suspected leaks now it notes that in the event of a suspected State security leak article 34 of the revised act the new one states that Network operators shall quote immediately stop its transmission save relevant records and Report the case to the secrets Administration departments or public security organs and State security organs end quote and notes The Operators are also obliged to delete the information if requested so in other words the CCP is carrying out a large scale propaganda and censorship campaign right now focused on the economy now look take that into account with what we know publicly the Chinese Communist party they regard the economy as an issue of nation security leaking information or even just speaking the truth anything that would damage the ccp’s economy could land you in prison or worse they can disappear you and the Chinese Communist party’s top intelligence agencies have now even made it clear that the punishments apply to Chinese people or even foreigners who criticize the economy if you so much as say something bad about it if you so much as question the public numbers you can be punished so given that situation how are you expected to get real numbers on economic growth how could you get accurate findings from audits how can you expect Banks or financial firms to report any data that gives a grim picture if it’s illegal to criticize the ccp’s economy and illegal to leak any data posted online or otherwise that could be damaging to the regime and the economy well look you really cannot publish this information unless you want to go to jail and so that raises some serious questions on whether the real state of the banking crisis and other problems we see on the surface with the Chinese economy whether they could be even worse than what we being told and mind you even what they’re saying on the surface it looks dire the Chinese economy is going belly up even on the surface now of course you know for a lot of us we’d say well well that’s China that’s the other side of the world you know far removed from us well it’s not so simple there are now very real concerns that what’s happening to the Chinese economy is going to spread globally remember because of the massive foreign investments the huge Chinese ownership of foreign real estate and foreign businesses and so many other intertwined finances a financial crisis or banking crisis in China can very easily cause a crisis here as well I’ll be talking about this more exclusively on epct tv.com the uncensored streaming platform of The Epic Times so if you’re watching on YouTube Facebook X Rumble there’s a link in the description below you can click on that to get access to the rest of this episode and not only that you get access also to my whole library of shows but also you know family-friendly movies premium investigative reports hard-hitting documentaries on issues that really matter frankly like the Chinese Communist party’s 100-year plan to defeat the United States which I expose in my documentary The Final War the CCP is one of the biggest threats to this country and it’s playing the long game against us by infiltrating and subverting the systems that underpin our country and the ccp’s unrestricted war against this country is one of the scariest but least understood issues of our time now I spent over a decade investigating the ccp’s subversion and and frankly it’s such an important issue that I’ve dedicated my career to warning people about the threats of the CCP if you’d like to find out more about what’s actually happening and what the CCB is plotting against America watch the final war you can find the link in the description below and I’ll show you all a trailer before we before we go exclusively to epct tv.com for the rest of this episode I’ll see you there the greatest threat facing the United States is the CCP The Epic Times investigation team had studied the CCP for years but what we uncovered was yielding evidence beyond our imagination with chairman ma with the Prime Minister our talks have been characterized by frankness the Clinton Administration said oh don’t worry about it this will be a poison pill for China China’s strategic goal is to make sure that the US has four enemies and one of them must be a terrorist group we are giving of our life’s blood so that the Chinese Communist Party can survive and thrive
Video Title: What China’s Banking Crisis Means for the Global Economy
Video Tags: CCP,China,Chinese Communist Party,banking system,collapse,ripple effect,global economy,Chinese markets,“de-risking”,Chinese economy,Crossroads,joshua philipp epoch times,crossroads,news,crossroads with joshua philipp,epoch times,documentary,the epoch times,live joshua philipp,Live Q&A joshua philipp,epochtv news,epoch, #Chinas #Banking #Crisis #Means #Global #Economy
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Video Date: 2024-07-15 08:28:07
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