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10 NEW Signs Of China Imminent Economic Collapse & China's Yuan CRASH!

The Analyst (New Real Media)
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Published on 07 Mar 2020 / In Film and Animation

Will the Chinese economic collapse happen in 2020?

China is the second largest economy in the world and in the last two decades, China has experienced a significant economic growth. However, the China has many problems like enormous debts, bank runs, an aging population and many others. The growth in China has been fuelled by debts and poor policies and this has created a hyper bubble that will burst with a china's yuan crash. People are always asking when the economic collapse will happen in China.

For the last several years, we have seen several Chinese banks being shut down. Banks like Baoshang, Jinzhou and other banks have been shut within a very short time. These are some of the cases of bank collapse in China and economists are predicting more similar cases in days to come. Experts are saying that the China bank regulators have already flogged at least 500 banks for collapse and this shows that many banks will experience bank runs or experience a total failure. This financial mess can be way too extensive than what most people think. Based on the report given by one of the leading French investment banks called Societe Generale, the Chinese banks have already accumulating a whooping loss of about $1.7 trillion. When put into perspective, these losses are equal to the entire GDP of Australia. This means that approximately 60 percent of capital in all Chinese banks is at big risk as the administration begins a tricky process of reining an economy that is already in debt to the maximum. For many years, the government has been excessively lending itself a lot of money beyond what the Chinese economy can support and this has created a big bubble that will cause a major Chinese yuan crash. The China banking sector already has big financial owes many of which are undisclosed by the government in an attempt to avoid an imminent economic collapse. By understanding what is happening in the financial sector in China, it easy to conclude that a new financial crisis is coming to China if no elaborate actions are taken to immediately remedy this condition.

Investors have become very suspicious of the Chinese economic growth and this has made some of the big hedge funds and global institutions sell some of the stocks they had bought from Chinese companies. A lot of money is being pulled out of the Chinese stock market and the stocks as investors fear that the worse will happen in China’s economy. Recently, China has found itself in the middle of an economic downturn after the markets reopened after the New Year holiday. The stock market has been steadily fallen and as per this point the market is at a six year low level. The Shangai Composite index has fallen by multiple points and the stocks of various Chinese manufacturing companies have lost a lot of value. Companies focusing on consumer goods have been the most hit and maybe the worse is yet to come. The People’s Bank of China (PBOC) has already lowered the short term interest rates as a way of stimulating economic growth amidst the current slowdown. The government has already pumped over 150 billion Yuan ($22 billion) to the markets to ensure that the financial system remains liquid. Still there are plans by the government to inject more money in the near future. This will continue creating a bubble in the stock market and it will only be a matter of time before the chinas yuan crash.

Well, no one can exactly predict when this will happen but I will show you 10 new signs that are clearly pointing that a big economic collapse is coming to China.

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Music:
CO.AG Music https://www.youtube.com/channe....l/UCcavSftXHgxLBWwLD

For more economic collapse news visit our website: https://www.epiceconomist.com

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