China enters mass defaults due to its over-built properties. Their property market is pop. Yet, some believed their government figures a way to save the market but other doubt the government can do anything. What just happened?
Chinese hot property market
The property market in China is red hot. It goes out of control. Every asset will trace back to the property because they believe it is the safest. It is an unspoken insurance policy to hold up your asset value.
China bypassed Housing Crisis in 2008
While the rest of the global was in the housing crisis in 200 dragged by the United States, China was continue rising economy without interruption. Everyone believes that was a miracle to survive in a housing crisis.
Not a miracle
It turned out that was not merely a miracle but because China had not yet integrated the economy into the global trade. Once they did, they will have to experience the up and down like the rest of the world because we are all in the same boat now.
The current housing crisis in China
China did not print that much money as the US did to devalued the fiat currency. However, they did print money in other ways, the more hidden ways, through private corporations, specifically Real Estate Corporations.
Chinese Real Estate is a Disneyland
Because people believe Real Estate will never devaluate, they use properties to hedge and issue bonds overseas for the rich to purchase and to earn higher interest rates. Not only you can earn a dollar which more valuable than Chinese currency, but you can also enjoy high-interest returns.
High risk, high rewards but unsustainable
There are only a handful of players who knew what corporations did overseas and they anticipated gaining rewards. However, the money ran out quickly and corporations only had limited money to give out.
Everyone copied and everyone got trouble
The entire housing market in China copies each other and wash their cash overseas. It can only sustain for short periods of time until the market got a correction.
Crypto can help but they do not want to
China may try to tap into crypto and enjoy the ride of valuation while continue washing their currency using crypto. However, the central government did not like crypto and was afraid of decentralization.
If not goes up, then it will come down
The government needs to find a way to fill the financial hole. Printing money is not an option because the government has kept its currency at a low rate for a long time.
Don’t trust experts
Many experts say China will be alright. They are right. If other countries will continue buying in. But the world has changed, and we are heading towards decentralization. The surveillance state is dangerous and we need to be aware of what future we choose to live in.
In conclusion
The Chinese economy is broken because of their “creative ways” of printing money. A centralized economy will experience a similar crisis while crypto can avoid such a downturn and bring a more healthy financial system for everyone to anticipate.
Photo by Tim Mossholder on Unsplash
Note: the post was shared on multiple platforms.
Related articles to reference here ⬇️⬇️:
-------------------------------------------------------------------------------------
Stablecoin
Stablecoin is Not So Stable
Stablecoin: We Ever Need Them More Than CBDCs
Poker Chips Economy
-------------------------------------------------------------------------------------
CBDC
CBDC: Stablecoin 2.0 or Stablecoin Killer
Chinese CBDC: the Ultimate Financial Weapon or Just another Copycat
CBDC vs Cryptocurrency: the War of Privacy
Game of Three Kingdoms: CBDC vs. Cryptocurrency vs. TechCoin
Why Crypto Got So Political Suddenly: The Beginning Tale of Government Crypto Surveillance Program
CBDC's Cross Border Payments System: Worse than Crypto
CBDC is Likely Only Last for 10 Years
Cryptocurrency Coexists With Fiat From Now On
CBDC: One Currency for All
-------------------------------------------------------------------------------------
Defi
DeFi Swap: Great Returns come with Great Cost
Defi: A Rainbow 5-Layers Cake
Robot Sucks: How Lousy Jobs AMMs Did to Ruin the DeFi
Defi Winter: What May Come After the Bubble Pops
-------------------------------------------------------------------------------------
Defi Manual
Defi Manual: Part 1 - Cefi vs. Defi
Defi Manual: Part 2 - Regulations
Defi Manual: Part 3 - Financial Weapons
Defi Manual: Part 4 - Market Manipulation
Defi Manual: Part 5 - Synergies
-------------------------------------------------------------------------------------
Inflation
Inflation vs. Bitcoin: How Speculation to Hedge Inflation has Failed in Short Term but may Create Opportunity in Long Term
Hypothetically, What if the Fed Fails to Control Inflation, Will Crypto Save Us?!
Currency Debasement: Cryptocurrency Inflation Hedge Hypothesis Still Hold
-------------------------------------------------------------------------------------
Gold
Gold vs. Bitcoin: Digital Twin or Enemy
-------------------------------------------------------------------------------------
Volatility
Volatility of Bitcoin: Threat or Opportunity
-------------------------------------------------------------------------------------
Recent News
Lesson Learn from Robinhood IPO: Era of Crypto Exchange Comes to an End or a New Beginning?
City Coins: Are they the Era of New Coins?
The End of Era for Crypto Exchange Platform?!
Crypto Hacking: How Did it Really Happen?
Jack Dorsey’s Ambitious: Twitter wants to Become a Place of Freedom of Speech
Legendary Hacker: the White Hat into the Rescue
The Future of Cardano: as Clear or as Uncleared?
Patent the Blockchain: the Nonsense Action Shows a Worry from Big Tech Companies
Forget about Trade War: New Era of the International Trade
Epic Games vs. Apple: Tech Companies Crypto Adoption May Begin
Litecoin Fake News: How Fake it is?
Robinhood vs. Coinbase: The Future of Crypto Exchanges
What Have We Learn From Twitter Bitcoin Tipping Integration
So the Stock Market is Rigged, Then What?!
What Have We Learned from Facebook Outages
The Fed’s Concern Reveals the Crypto Future
El Salvador’s Bitcoin Adoption Turns Sour
Executive Order Just for the Crypto
-------------------------------------------------------------------------------------
China FUD
China FUD: Are We Done Yet?
Bitcoin Mining Recover?! The Chinese vs. The U.S Strategy of Blockchain
Red Alert: Lesson Learns from the Nearly Cashless Nation
Have We Ever Learn Anything from 2008?! To Print or Not to Print?!
Crypto's China Syndrome May Never be Recovered
End of the Big Bank Era
China Ban Ban Bang!
Lesson Learn from China's Crypto Ban
-------------------------------------------------------------------------------------
SEC FUD
SEC vs. Ripple: the Endless Game of War
SEC vs. Defi: What is the goal of the Defi?
The SEC Defi Investigation: The Decentralization Theater
Coinbase Regulation Probe: The Future of Crypto Lending
-------------------------------------------------------------------------------------
NFT FUD
NFT: Digital Solution or Delusion?
NFT: The Future of Gamers' Assets
NFT Bubble: Does it Really Matter ?!
NFT Bubble May Just Almost Pop
Are We Popping NFT Bubble Yet?!
-------------------------------------------------------------------------------------
FOMO FUD
The World Without An Expert: Expert ≠ Rich
Satoshi Nakamoto's Statue: Should We Worship Him/Her?!
Tech Coin: The Coin We May Not Want to Own
Crypto Companies: Another Tech Giants or New Era of Tech
-------------------------------------------------------------------------------------
Miscellaneous
Where are We Position Crypto at : the Problem with Money and Wealth
What Categories Does Bitcoin Belong to or Does it Really Matter?
Quantum Financial System: The System Lost Itself in Quantum World
Crypto Hot Hub: The Best Place to become Crypto Incubator
Break the Fourth Wall?!
We Are Short for the Dollars: The Dollar's Liquidity Issue
Fiat vs. Crypto: Religion vs. Science or Vice Versa
Crypto Movement: From Consumerism to Anti-excess Movement
Wisdom from Steve Jobs to Satoshi Nakamoto
Fiat Squid Game: Crypto Comes for Rescue
Your Pet is Your Trade Partner
Definition of Money has Changed, Thanks for Cryptocurrency
-------------------------------------------------------------------------------------
Post Quantum Cryptography
Future Consensus Algorithms Power by Influencers or Capable to Resistance of Quantum Attacks
Technology Race: Quantum Computing vs. Cryptography
Prepare for Post Quantum Cryptography
-------------------------------------------------------------------------------------
Bitcoin Digest
Is Bitcoin Untraceable Anymore?! It Depends!
Currency Comparison: Bitcoin vs Dollar
Bitcoin ETF May Not Be Such a Great Idea
Bitcoin Lightning Network Explain
-------------------------------------------------------------------------------------
Ethereum Digest
Ethereum London Hardfork: How Hard does It Actually Fork?
Did the U.S. government just thumbs up on Bitcoin and down on Ethereum after the London Hardfork?
EIP-1559: The Future of Ethereum Economy
Ethereum Got Update Bug: A Blockchain Synchronization Problem
Buterin's Regret: Ethereum 8 Co-Founder Things
Can Cardano Really Kill Ethereum?!
Cardano is Smoking or Vision the Future
-------------------------------------------------------------------------------------
Shitcoin Economy
The Legendary of Shitcoin: Meme to the 🌓 or Unique of 💎 or Simply just 💩
Crypto Economy: the Untold Speculative Financial System We will Live?
Shitcoin Economy: Part 1 - Category
Shitcoin Economy: Part 2 - Regulations
Shitcoin Economy: Part 3 - Environment
Shitcoin Economy: Part 4 - Technology
Shitcoin Economy: Part 5 - Detokenization
-------------------------------------------------------------------------------------
Doge Economy
Doge 2.0: Who Let The Dog Out?!
Dogecoin 2.0: Doge Breeder Era
-------------------------------------------------------------------------------------
Energy FUD
Bitcoin's Energy Concerns, Scalability and the End of Bitcoin Prediction
Unknown Author’s Hypothesis: Creator of PoW and PoS Hybrid Blockchain
-------------------------------------------------------------------------------------
Tokenoconomy
Tokenism: An Old Idea Get A New Invention
-------------------------------------------------------------------------------------
Crypto-regulation
Legal Framework of Virtual Currency
The Cantillon Effect: The 18th Monetary Curse About to be Broken
-------------------------------------------------------------------------------------
Machine War
Artificial Intelligence vs. Blockchain: the Future of Machine War
Crypto War I: Birth of Public Key Cryptography
Crypto War II: Birth of Decentralized System
Crypto War III: Decentralized Hunger Game
-------------------------------------------------------------------------------------
Disclosure: The article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters. You should not believe any words this author wrote or you may experience similar symptoms or even possibly become a nut job.
