Cathie Wood: China Already COLLAPSED!! You Just Haven’t Seen It Yet…

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China’s entire economy is about to collapse and instigate the largest global recession. Recent economic data coming out of China is exposing the country’s serious weakness. The Chinese Communist Party is trying to save the economy, but the truth has already come out. Cathie Wood manages almost $20 billion and has quickly recognized the pain that the world is about to face. Economists now see the US GDP growth outpacing China’s for the first time in almost 5 decades. So what’s really going on in China? This video will unravel China’s frightening situation and the shocking data pointing toward the country’s collapse.

After China began to open its economy in 1978, the country experienced unprecedented levels of growth. China’s GDP growth averaged at a rate of roughly 10% per year. This brought substantial prosperity to Chinese citizens. Over 800 million people escaped poverty. Healthcare advanced immensely, education became prioritized, and technological development accelerated. China’s unrivaled growth has led the country to become a manufacturing powerhouse respected by all economists. But as you all know, there’s no free lunch. The reason behind China’s unparalleled prosperity centered around its growing liabilities. When the economy thrived, those who took out loans experienced a quick appreciation in their net worth. This incentivized others to do the same, causing the economy to grow even faster. This caused even more Chinese citizens to take out loans. The cycle represented a positive feedback loop that caused China to experience exponential growth. This model has worked for many decades, but China’s debt has grown to a point that isn’t sustainable. China’s government debt to GDP ratio has increased to over 66%, which was built over the many decades of growth. The total public Chinese debt to GDP has also followed this trend to over 300%. This is almost 60% higher than the global rate of debt to GDP and is almost double the US non-financial corporate debt to GDP. Such a large amount of liabilities is obviously not sustainable and China’s recent issues are revealing this. China has been attempting to implement what’s known as the zero-COVID policy. The zero-COVID policy gives China’s government a simple target of zero COVID cases. The only way to get remotely close to this goal is to implement harsh regulations, which have severe economic implications. Banks and economists worldwide have continuously cut their GDP forecast for China due to strict COVID regulations. More importantly, China’s crackdown on overleveraged companies could instigate the opposite of the positive feedback loop we talked about earlier: a negative feedback loop. People defaulting on their loans causes the economy to slow down. That leads more people to default, which slows down the economy even more. President Xi has a simple goal of common prosperity and has been implementing a vast array of regulations for this campaign. One of these sectors is real estate. Real estate prices are the epitome of uncommon prosperity. Speculators have made a disproportionate amount of capital appreciation from rising property prices. President Xi is attempting to crack down on this by implementing new property taxes. Another policy that Xi has been implementing to crack down on within real estate is the three red lines policy. The three red lines put a ceiling on the amount of debt that property developers can have. All of these policies are causing housing prices to drop at extremely fast rates. The volume of new home sales is also experiencing a similar downturn. New home sales in early-May 2022 are down by 33% in 23 major Chinese cities. Real estate accounts for 25% of China’s GDP, so a 33% drop in home sales would result in a 9% drop in China’s GDP. China’s government recognizes the country’s impending disaster and has been doing anything in its power to prevent a further collapse. While the US Federal Reserve has been raising interest rates, China’s government has been cutting interest rates to save its economy. China’s loan prime rate for households and corporate loans is currently at 3.7%. This number is only expected to drop even more as time goes on. The country recently cut its 5-year loan prime rate by the largest amount since 2019. Most investors look at this crash as an isolated failure that won’t affect other countries. Contrary to this, China’s economic collapse could cause the entire world to enter a severe recession. The US Federal Reserve is raising interest rates and strengthening the purchasing power of the dollar. This directly weakens the value of the Chinese yuan in comparison to the US dollar. China’s weakening currency will lead its purchasing power to drop substantially while the Chinese economy is already crashing.

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  1. America has been in a recession since democrats run it now . Everything they touch becomes a mold.

  2. I think u r overstating problem — COVID reaction & Ukraine war petrol price hikes caused recession. Hiking interest rates increases prices due to higher corporate costs of goods .. major change from petrol to electric will cause layoffs but better in long run short run recession. l😄ower transport costs in the end.

  3. Sounds like propaganda! He's praising president Xi….and telling that he's lowering interest rates….and saying U.S. is raising interest rates.

  4. God is protecting the world,don't worry,we will survive and so will the system this time round.

  5. Individual stocks is bad advice. Also not recommending bonds is bad advice. I'd forget bitcoin and gold.. depending on your age.. 60/40 or 70/30 ETFs to bonds and the 3/4 months of salary kept in cash as an emergency fund.

  6. Yo! It has been 2 months now.. When this collapse going down exactly?

  7. I'm getting tired of this channel. It's all just clickbait titles and doomsday prophecies.

  8. "demand is falling" This is what's happening. I sell a lot of goods online and its clear to see, people have stopped spending money. Jan 2023 will show this after Christmas hits the west hard.

  9. hehehe , see GBNEWS hehe honey and milk on the western side heee

  10. Brad gristner and Bill Gurley are obviously guys who have billions of dollars to fool around with you can tell because no one has told them their haircuts look that way and they're completely oblivious to it look at the look on Bill gurley's face in that picture he is completely confident and at peace with his haircut

  11. China borrowed itself into prosperity. Thanks to Xi, debt, real estate, and China Flu ruined it.

  12. Expect this country and others to declare bankruptcy.

  13. Smart people kept their money away from China.
    The vast majority of China wealth was a Ponzi scheme and the rest of it had 30% corruption

  14. Anyone with a Chinese lunch should not repay because it was a debt trap…. and anything China has claimed to take percentage of or all of such as in Sri Lanka should be torn up and ignored until China leaves Sri Lanka alone and gets out of trying to dominate the Seas

  15. Before reporting about China can you really tell about America’s 30tn national debt why it couldn’t collapsed.

  16. I have been hearing this from channel for few months now. China is going to collarspace, give me a time frame please, thanks

  17. Being in a ressetion does not mean your purchasing power is drying. China is still recieving a ton of foreign currencies.

  18. I saw testimony of how economy helped a man make -$50,000 weekly Profit I tried now am also sharing my testimony with over,$10,000 from the company thanks for the good did he has done for me for this short period of time

  19. We are in a recession now. It's a depression that is coming, just say it dude.

  20. The front page is misleading; in that it purports to be by Cathy Wood, when it is not.

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