Why You Should Be Worried About China's Debt Crisis | Economics Explained 

EE, can you do a video on organisations or regions such as East African Federation etc.

The thumbnail has a typo. It should say built not build.

Over the top protectionism? EU increased tax on non-EU imports from internet shops. Now even a few cent products will be taxed (before under 22€ was tax free, no need to enforce procedures regarding paying the tax).

Can you provide a little more info about the 'up to' $70 in free stock and fund with 'as little' as $1 I couldn't find and detailed info on the link. Thanks :)

The thumbnail, shouldn't it be 'built' not 'build'?

It's a giant ponzi.

It is. Value is created by speculation on future profits. The entire economic system is built on having endless growth on a planet with finite resources.

And therein lies the root issue of capitalism

@@bee5440 Governments coercing big corpos to do their bidding, giving them free money while legislating their small competition out of the market is somehow capitalism's fault.

@UCx9OE9wFJsBp8xL3ThEqSrA it's not capitalism it's globalism. And the U.S. economy isn't even capitalism it's a free market,so f off

No need, they got the US who would buy up Australia exports.

Yes, no, kinda. June ‘21 monthly stats were total exports $41B ($19B from China), imports $28B ($7B from China) and a $13B monthly surplus. China goes we’re bugged short term but it won’t be the end of the economy. We’re taking steps to diversify as quickly as we can and leave the ball in their court. Terms are now cash and carry…

@@andriod8014 The US already has all the natural resources that Australia produces.

@@nathancloete9932 Yes but it's cheaper to get it from Australia. The UK has a ton of coal still but we import from Aussie land because it's cheaper

@@rreinehr1 What percentage of total exports per year goes to China? About 36% according the last full year stat I can find. That's not even taking into account the Services Industry. How much Chinese money is invested in services e.g. Chinese students at Australian Universities, Tourism, Banking, Insurance??? If China tanks it's taking Australia with it.

I have a question about the on child policy that would require too much research.. Do you know if the population of China has decreased in the last decade? As people have died and only one child from each set of parents get to live.

@@dagfinissocool I Believe that is a problem but also the male/female ratio as the last time I heard it was like 8/1 I only heard this so some research is required

@@dagfinissocool the one child policy started in about 40 years ago, and china’s population doubled during the period.

@@JohnJohn-bf7lh I just checked my own country and the population hasn't even close to doubled in the last 40 years. I feel like China has been lying to us..

@@albertohernandez3487 That ratio is only in the major industrial cities like Beijing and Shanghai, or maybe Guangdong. Its because more males leave home to work in the major cities than females. The actual ratio for the country is more like 51:49, but that 2% swing represents 37 million more males than females.

Wait… 18 hours? You test mattresses for a living? 😂

So less of a Black Panther party activist as a lazy tabby cat protest?

@@TheFalseShepphard They’re dying to make a difference

@UpNorth lying flat statue?

Lying flat is not being lazy though. The main idea is more like minimalist for life: the society sucks, I'm just gonna hang in there, but nothing more. Some people are putting more effort into Lying flat. One guy (the same guy who really popularized the idea of Lying flat) developed a system to nurture Chlorella in water as his food source, and claims that "I will never starve as long as there's sunlight". What did he do? He calculated that the nutrition (excluding sugar) to sustain one human for 1 day needs to come from one 2L bottle of Chlorella, which takes 4 days to nurture. In order to keep up with consumption, you need to nurture more than 4 bottles simultaneously (he was gonna prepare 8). Problem is, by the time when you have consumed the first 4 bottles, other bacteria in the water have also reproduced to the point that the Chlorella water is not potable in the other bottles despite the fact that he has preemptively disinfected the chlorella. Therefore, you need to speed up the production. By his calculation, every bottle needs to receive at least 20hr of sunlight per day. So he installed: 1x 50W LED fill light, 1x smart switch with programmable timer, 4m^2 of reflective plastic film, 1x aeration fan, 1x aquarium air pump, 1x thermometer. All these allow him to lie flat. Here's a video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-IEr93xVuZsQ.html

Yep, that's what brought me here.

What happened? (Excuse my ignorance)

Lots of information is not even close to truth...

@@joneywins Evergrande is China's second-largest real estate developer and it's drowning in debt. If it doesn't pay its obligations within this month it could go bankrupt. Most problably take a lot of other real estate developers with them. Millions of Chinese would loose their investment. It would make any other economic depression look like a stroll in comparison.

@@FredrikHaugen "Lose"

Lebanon pulled a Venezuela? I didn't know about that, wow. I'm sorry to hear that

I know it must sound meaningless coming from some lad over in Europe but I hope you manage to recover. I’m sorry

​@@colatf2 Yup. Lebanon continues to hustle for those infamous records. Top 5 largest explosions, top 5 most expensive telecom, top 5 hardest economic collapse... stuff like that. Right now we have electricity about 2 hours every day. Fuel shortages mean people are queueing up for 3+ hours to refuel their cars, if they're lucky. Hospitals are short on essential supplies, like vaccines for children. Fuel & electricity crisis means some medical centers are having to shut their doors and ditch patients that will die without respirators or life support. On and on.

That sounds horrible. Heard a little bit about it after that awful port explosion. Hope things get better for you. Most of what I know about Lebanon is from being keen on archaeology and pre-history.

At least you aren’t Gaia online, now that is an economic crash. Fight on man.

I’ve visited China a few times, the wealth equality is so extreme from an outside perspective. The poorer families or middle class is limited to 1 child while paying rent. On the other hand rich families with government connections have 3 or more children driving BMW.

A few punches to the face and they'll do anything.

@@brianyang5075 We see this inequality in over 70% of the countries in the world.

@@brianyang5075 There's is no one child policy anymore in China.. Furthermore 1 child policy only applied to Han Chinese, there are 56 ethnicity groups in China, many people from rural area's often had 2 or 3 children and they weren't rich or driving BMW's. You think paying rent is weird? Do people live for free in other nations? Looking at your name, you seem to be Chinese... How come you know nothing about China? One thing I dislike most is when Chinese spread fake news about China...

U in China on youtube........ Sure. Just continue doing this

Be careful of anything with "Ever-" in its name.

PEACE PROSPERITY BONANZA FREE THINKING

@@Xalantor everpainful

Evergiving... The humble taxpayer

Violet Evergarden…beware coz u might cry

On the bright side a lot of east asia is keen to fill that void if they actually could is another question

@@dun0790 countries should make their own stuff as much as possible. Shipping things across the world is very damaging to the environment

I always thought that was stupid. Outsourcing jobs are done mainly because companies hate creating a safe work environemnt domestically, so they use sweatshops for the cheap labor and unregulated conditions. Disregarding the morality of it all, we basically gave our economic independence away. We rely on these products coming overseas to the point the domestic industry collapsed and will never be able to remotely compete.

@@Esternos2891 Ai can easily make up for it.

@@wafflecopter9296 Ever heard of a competitive advantage? Have fun buying an iPhone made by Americans getting paid $15/hr.

One year has passed , and turn out it's US facing economy crisis and banks collapse 😁😁😁 Fancy video editing and advanced economic verbs didnt mean the 'prediction' is valid 😁😁😁

Remove the shitty govt regulations. Listen I hate trump, but there is no denying the economy grew. Every bracket of the economical ladder saw an increase. And all he really did was slash back govt restrictions. Which Biden reinstated as it was an executive order (which I detest any president using them.)

@@crillianmarvin6256 bruh I'm not even american

I am providing a solution that had visible effects. Not saying it would work for your nation. Economics is a complex beasts. Consider it a nugget to research and mull on and reach your own conclusion should you be so inclined to do so.

It happened in the 1920s in the USA, leading to the Great Depression of the 1930s... Who knows, maybe the 2020s will be China's 1920s...

@@TEverettReynolds The US housing bubble burst in 2008 leading to the Great Recession. Congress and the Federal Reserve bailed us out preventing it from being a depression.

@@bobs182 That was not a Great Recession.

🔺SERCH ADITYA RATHORE- HE ALSO MAKES INFORMATIVE CONTENT LIKE ECONOMIC EXPLAINED

@@TEverettReynolds The difference is that USA did nothing to prevent or postpone the collapse and were caught flatfooted, the CCP know that their economy could implode for about a dozen reasons and they do anything to prevent that. China might be able to hold on for several decades and then face a even worse collapse. Another problem is that they focus more on keeping their growth than improving the lives of their citizens, which leads to increasing frustration in the population, which in turn causes the CCP to tighten their grip. China will become even worse long before it suffers any real setback.

What meltdown, can you explain

@@darthplagueisthewise8880 I'm guessing Evergrande

That remains to be seen. I think China will power through this one like it always has. Government will bail out the financial institutions and continue pouring money into infrastructure and public projects. Once time comes to pay the piper, Chinese authorities will just remind us that capitalism is a construct and the final word in all matters is the Chinese state. That's why I think China's authoritarian retrenchment over the past few years is partly due to its structural concerns--they're preparing for any number of future calamities that are easy enough to see coming.

@@nerdonword561 and they would just contributing to the housing bubble and the debt it accumulates

tbh, they had issues since 2020.

Good point.

The assumption is that the CCP will have to renew at least a majority of leases, or the economy will collapse as so much money is tied, directly or indirectly, to the real estate market. Or that's what a rational government would do. With the CCP, we'll have to wait and see

@@talltroll7092 yeah, and it's likely a safe assumption. Wonder if there'll be a redistribution in some way, like change certain residential into commerical/industrial/etc to counter the ghost cities. It's just interesting to remove the "almost sovereignty" in the form of title, from a real estate asset.

But let's be honest, who does that? Basically no one.

@@user-wb7ez9ud4p and the ones who do just click the first link that supports their world view

It's a clever way to avoid backlash over getting things wrong

EE has had a lot of backlash for making up false conclusions on his channel before.

@@zachmason868 sure he has

Bailed out

@@zacksmith5963 has that happened? Got a link?

@@zacksmith5963 the Chinese government has said they won't bail them out looks like they are gonna collapse before the Gov will do anything to improve the situation cause Evergrande executives played their political cards poorly and the CCP disapprove of them lately

@@rishiarora3589 "Zack Smith" gets 50 yuan per China-simp post, don't expect anything.

@@oxcgen8592 The Chinese government would have to help them, even if they like them or not.

Or cheese since it keeps getting a stronger and stronger smell making it harder to hide

After? It's still ongoing

They age like fine wine. EE is a master vintner of economic content.

“If someone spent his entire time wishing you ill, hoping you would fail, and shorting your stock, when he makes a pronouncement or assessment, assess something, makes a judgement about your present, your future, it’s probably a fair bet that the opposite is true.” ----- Eric Xun Li

Evergrande is nothing compared to GFC Leveraged derivatives that scale like a nuclear chain reaction

This is good.

Congratulations.

What kind of home is that?

@@Ayvengo21 a 2 Room apartment that doesn't have major problems

A clássica história do sonho americano. Tem que estar dormindo pra acreditar...

@J Kairos Actually, they're really quite amazing. They have really good engineers and automation that allows them to see a lot of data that helps them predict the future of where industries are moving. This year they will be able to increase their GDP by almost 3.5 trillion, which means they are essentially adding an entire Germany GDP of income to their pockets. I work with manufacturers quite closely and with information platforms in Asia, they're not the only ones looking at the future. They are in the space ahead and able to jump ahead, like how America created credit cards, but China decided to go almost all digital. They are leap frogging the technology. People have been looking for the downfall of China for over 40 years, so I wouldn't be waiting anytime soon, China will probably grow long after we've all passed away.

@J Kairos you are absolutely right about the education reforms... I remember when china was all about economy. That was the only thing people cared in china and still do (money and family). But the thing that happened with the education absolutely destroyed a huge part of the education industry (private education). Many private centers declared bankruptcy and closed down. Thousands and thousands of people lost their jobs (I mean Chinese people) overnight and the government will lose a lot of money it would make taxing. So now all of a sudden ccp doesn't care about money? Ccp doesn't care people lost their job? I know why they say the policy is in place but there must be something else that they are not telling...

@J Kairos I was born in Hangzhou in 1996, absolutely amazing transformation of living standard under Chinese government! I travel back and forth between Hangzhou and Toronto, Toronto is no better in terms of infrastructure. Any statement that tries to slander China's economic achievement is garbage, I witnessed it, I felt it, it's very real!

@@zkh173 he didn’t slander your countries economic achievements he said your government is full of sick and twisted individuals willing to do anything it takes to achieve world domination, and with you being a Chinese citizen that gets to leave I hope you understand that there is no dispute for that. You will never have the same freedoms in China that you have anywhere else if the status quo is maintained

@J Kairos I was trying to be nice and civil about it gotta go one step at a time with heavily indoctrinated people

When the two fishes in the pond are too drunk to swim, a German must've passed by

@@appleslover Maybe a Russian passed by, well actually the fish would be dead of radiation poisoning if a Russian passed by.

@@dawudsandstorm7852 the fishes would have red books beside them while spouting how the tyrant bourgeoisie is taking the liberties and hard earned effort of the gentle laborer

When critics of US foriegn policy disappear or die mysteriously the CIA must have passed by.

@@j.grimes4420 Or when critics of US foreign policy suddenly receive massive shipments of arms and start killing US citizens abroad.

Can you think China will be replace USA or EU

And here goes the doomer mentality of incoming china collapse again How many times is this? 6? 7? Maybe let china collapse for once before drumming and celebrating

@@metagde6402 so you shill campaign continues haha working extra hard to play janitor for the CCP, are we?? Haha Wumao

@N Fels cnbc and abc reporting it though . actually alot of outlet so far no bailout yet wumao

@N Fels Evergrande hasn't been bailed out yet what are you talking about?

You got to admire those buildings, joining all those young people on their protest.

nah we just couldnt afford one

Hard to talk when we got similar condos in Florida and no public infrastructure development to speak of for decades

You never actually own any piece of land beneath the dwelling. The authoritarian government could just take it away from you anytime they want.

@@tomaszyarlett8681 But why would they?

This is perhaps both the most depressing, and dumbest timeline.

Every problem is also an opportunity.

China going down will be collectively good for all of us!

@@Kushagra.j you sure about that from an economic perspective?

@@Kushagra.j except the U.S. is likely going to blow first. Then China. All these capitalist countries are built on houses of cards for us, and another world for them.

also like how some businesses in the US dump their own products rather than donate them just to chase profit, even though donating cost nothing.

@@Krasnoye158 Ya I do admit some parts of capitalism has this issues. Food produce being wasted and bleached (to prevent homeless people from taking it) and amazon destroying their inventory in order to maintain the supply side of supply and demand.

@@Krasnoye158 when your currency is the world reserve currency you can pull such stunts and get away with it China does not have such a luxury

Do note, some products, like raw milk, are dumped because it turns rotten/bad if nobody can process or store it. The places with pasteurizers and fridges aren't able to just run and donate 24/7 without bankruptcy on the horizon rn with our setup.

@@Krasnoye158 That's what happens when monopolies take over and there is only one supplier. In a normal functioning economy with open and free market competition that would never happen.

If you trust them to actually do that... After 99 years I would expect they'll just take the land back and resell it.

@@michaelf.2449At least you got it now

"I'll look at all the pros and cons of their style of government, and finally.. give communism a Doug score"

😂 agree. We need Doug Score for countries

Grandstianding is very popular.

Quirks and features of China's debt system & real estate market

"This.... is China and today I will show you the different quirks and features of communism.....with chinese characteristics." ~ Doug

Gordon Chang: predicting the imminent demise of China for twenty years and counting. Eventually, he'll be right.

@@kenban8533 That's like all the people predicting the world will end. Eventually one will be right and he can call himself the messiah. Here I'll make a prediction myself. "China will collapse 1 million years from now."

Predictions with no time limit are useless, given a million years, everything will eventually happen.

@@karlcarlos8516 yes, exactly

@@ritwikreddy5670 That is not completely fair, if you get the mechanism of the collapse correct. you can't put a time on these things, mostly because simply making the prediction effects the outcome. People screaming about how the government is going to take are freedoms and it will be like 1984 in large part are the reason they have been wrong (well up till now), they themselves were resisting the change and falsifying their own predictions.

I think Evergrande lost cant impact China economic 🥲I think it make us see China politic very power and it control all business

@@ashleyashley369 u 'think' lol good one bot, account created Sep 12, 2021

@@v000000000000v yo good catch!

@@v000000000000v just look at that grammar. Tells you all you need to know already

@@ashleyashley369 you are really out here simping for china in random youtube comments? CCP payed?

This video would sadly be quite depressing in some aspects

@@mframedeye37 yes but it would be cool and show some light on our modern day banana republics

@@AC3pog ye I would love to see more videos on southern and Eastern Europe

What's going on in Yugoslavia?

I second this suggestion.

Ask spain

Ask the Denver & Vegas areas

@@sideshowbob ask china

Sit back and watch the dominoes fall and if the ccp should fall remember you almost had it all !

@@johnerdelyi48 i sm sitting bsck and watching usa fall . Ccp is kaughing as well

But what has happened in the least 6 years then? Do you have any idea on that something big? Will it cause the economy to fall back?

Culturally yeah, not economically. It's regression for us foreigners not the locals.

@@Krasses It's getting more and more complicated for foreigners. Bit by bit. I know a lot of people who left, who are planning to leaving and some who since the pandemic can't come back even though their life is all here. But the most annoying is when you are running a WOFE (Wholly Foreign Owned Business) here in China, you have lots of issues, inspections, anonymous complaints especially if you are successful. Outragious enough: your local competitors can be non compliant but they face no issues. Last thing to notice: there are incentives, wording, speeches... to push Chinese to buy Chinese products not foreign brands with the underlying idea that foreign brands are bad and harmful (hilarious).

@@Krasses what happened? Xi became emperor.

@@nicoz4122 so they're acting like USA lately??? 🤔

Sounds like it enforces an apartheid system between rural and urban residents

@@timothydee1507 that’s exactly what it is and it helps limit the freedom of movement especially considering that it was one of the first long term policies that were implemented by the communists it’s just that the Hukou system stuck around unlike other polices such as killing all the birds…

@@timothydee1507 POV: you don’t know the definition of apartheid

@@augustuspetrov7844 not apartheid in the literal sense maybe segregation would be more suitable?

@@augustuspetrov7844 sounds like u missed the point

💀💀😂

time for the glorious empire

Could you please elaborate?

The GDP that china published is simply a blatant piece of bullshit. They have being declining for a few years now they just don't admit

@@DavidSmith-nx3zw last time I heard that china should become a developed country and was hiding the actual GDP, under reporting. Whatever.😂

@@DavidSmith-nx3zw to be fair whilst China is only seconded by the US as to how shut capitalism uses GDP, they have taken the most amount of people out of poverty. If we took China out of the total there would be a % increase in poverty

@@MikeSpike117 They took people out of poverty by lowering the threshold of what being "in poverty" mean. It's like moving "being fat" from 90kg to 120 kg. That's how they beat poverty.

Well it’s getting worse and worse under the current dictator. It wasn’t this bad 20 years ago when China just started open to the foreign market.

It’s a matter of degree China was less authoritarian a decade ago than it is now but was never a free society

Problem?

There was hope few years back, but now every chinese have a red book to learn from school called "Xi Jinping 's thought". Fail to know the red book, you fail exam. Oh and if you dont know it well enough in corporate world, well you can kiss your career goodbye as you gifted your colleague your well derserved promotion. History repeats. Especially in a country where history is either forgotten, rewritten or censured.

Well, I grew up in China. There was a time back in 90s and 2000s when China was headed in the right direction, slowly becoming more open, free and even tip toes in a bit of democratic reform at a very low level. But then Xi came to power, and he started to reverse all that -- more central authoritarianism, less personal freedom, more censorship, propaganda, antiwestern nationalism, clamp down on businesses...it's getting worse and increasing feellike Mao's cultural revolution 2.0.

Or the impending collapse of the global economy is driving demand for Economics Explained videos. Occam's razor. You pick.

@WorldFlex the ending should tell you all you need about this channel, it's not interested in economics but fear mongering in order to get clicks, "who will they blame when you only have 1 party" while an American flag is in the background, not only implying "this can never happen in the west as you have 1 side blaming the other until we vote" but is also making an ominous remark how China will enter into a possible war with the US over its own economic hardships. Pure fear mongering!

A drumstick?

Crazy, right?

Hope you enjoy your freedom in WA.

It's clear to me you're Australian government has completely bent over to the CCP so good luck...

I'm sure AU would rebound quick, because America would definitely push to take china's place in the economy

China built more ghost cities all over southeast asia, look it up....if they go down, they drag down everyone with them 😬

Australia should diversify their economy and export and should start looking for new emerging markets like India, Mexico, Vietnam, Brazil, South Africa etc..

@@Weeee439 I assume so, just alerting the creator so he can fix it

@@dan203 Good lad! Should be an easy fix. 🙂👍

It is true that China owns ~1Trillion USD worth of US debts among others but the fact is, the US can always pay her debts because she can “technically” generate the currency needed to pay off these debts, for as long as inflation is in check, they can print them. Ive read about this in a book called “The Deficit Myth”.

China is actively undergoing socalist transformation, they have harnest the productive power of capitalism as well as the exploitative and damaging aspects of it as well, the party is there to manage these contradictions while they capture foreign capital to build their country legally and through contracts with big businesses. There will be a time when they nationalize housing or provide cheap and affordable housing for all, eventually though, debt is not a concern.

@@aaron3951 and china can print their own money too. But nobody wants to accelerate inflation

It's not hard. Chinese people and local governments borrowed money from the state via banks. Foreign governments like the US or Sri Lanka also borrowed from the Chinese state. In short we are all owned by the Chinese central government (Central Committee of the Chinese Communist Party). The debt issue of US is if it cannot repay on time it'll have to print more and that devaluates the dollars. If that happens too quickly people and foreign governments will ditch the dollars. That further accelerates the inflation and the devaulation of the dollars. The debt issue of China is if the people and local governments cannot repay to the central government the Chinese state owned banks will collapse. To prevent that the state has to increase the supply of yuan's and that increases the inflation, the property prices and the wealth gap since the poor are the furthest away from the printed money. What's worse the citizens and the local governments will borrow even more as the state punishes those that don't, so you end up with an even bigger debt problem.

that's where you need actual numbers to make sense of things.

Nah... not the same thing.

Based on EE's explanation, it seems closer to Japan's Hikikomori phenomenon

Lying flat in American be like: STOP RESISTING STOP RESISTING🧔🏿🦵🏻

Interest in those theft, always accusing others of stealing like all the Americans always blames everyone else, but itself. a nation failed 365 degrees around, but the only resource is pointing the filthy finger to China as a scapegoat.

@@joellis5915 there are only 360 in a circle mate

Moreover, they had 30years to get property as there were no property for 50 years if not a 109years. That property rights are someting very real jow but was not before

Do not worry my man, officially the world as of now had 210.000.000 cases and 4.100.000 deaths. China had....4000 cases...with 0 death...hmm.

I've been watching documentaries saying how precarious the economy of China is, how bad the choice they made are, how it will backfire and hurt the world economy for at least 20 years. 20 years later, they are still catching up on developped countries. I can't believe the irony in the fact that developped countries keep bashing China, and are still not even close to do what they are doing in term of economic growth and social improvements. Western societies are basically stuck in statu quo arguing on bs like "is a mask really effective", while the only care of their governement is to get reelected..

@@pascalladal8125 previously due to there are new investment filling the game it is like a ponzi scheme.....when there are new comers, the scheme can still works. Most importantly, it is China government want to "kill" the rich tech giants for it's own gain via communism tricks that scares investors.

China sucks

@@pascalladal8125 Not all of us are stuck on that mask BS...

Press pause mate

Use your space bar

@@8Scientist that’s why he said it’s a suggestion, There are always ways to make good use of a bad product, nothing wrong with giving a suggestion to improve.

@@rahulray5411 It's not improvement if everyone else don't like it

@@alan5506 are you saying others enjoy looking at background filler stock footage more than actual data the video is based on?

When I was in Chengdu a few years ago the western press were all talking about the imminent economic and probably political collapse of China. I always stay well away from foreigners when in China, only saw one were I was living in 3 months staying with a Chinese friend. I remember a 30+ apartment high rise was being built at the time, the work went on 24/7, it was example of just how hard the Chinese work. I though then that the 'west' particularly 'western' economists just do not get China, its people, its culture, its history.

@@savageideas Hey nice explanation. Just curious how do you use RU-vid from China? Guess you are not staying in China rn? Apologies for my ignorance though. Just curious

@@prajnaprayas7425 would like to know aswell, especially since it's not a pro china video

@@prajnaprayas7425 Maybe they live abroad. Plenty of Chinese do, and I start to see why...

1. and there ghost cities and overall if u compare income to house prices china is waaay to expansive 2. the elders dont have lots of money to give to the young ones, also 1 child has to support 2 parents and 4 gradnparents - putting great strain on the state 3. there are houses for 80 million people where nobody lives in. They build more so it will total to 300 million whyle the population shrinks. The stock market will blow up eventually

Actually came down here to point out that typo in the thumbnail too.

how do you figure?

or a ponzi scheme that still holds up for 40 years

Egypt was built on sand and it was around for a while...

@@elmohead glass building built on sand maybe?

Ofc it's just a speculative asset flip if that pos isn't even your own. You only lend the land and never own it so there's a deadline to any home ownership. You basically have to buy and sell off again within that timeframe. What a stupid concept.

PEACE PROSPERITY BONANZA FREE THINKING

Just like a Florida condo. Or Florida pedestrian bridge.

@OrzTech Tbh I don't know as I haven't heard the original Chinese, just English translations, but hearing that my guess is it is is poetic slang due to the similarity. My memory is fuzzy but I feel like I've heard of other examples of that in Chinese before.

Literally same problem in most of countries….

All it's ever been, really. Though a lot of it is also Xi Jinping's strongman tendencies scaring outside investors and drawing international ire. Hu Jintao was able to keep the act up much more convincingly.

The problem with commercial real estate valuation comes from the fact that 5gere is more KYC due dilligence in a 100k retail brokerage account than there is in a $100mm commercial real eatate transaction.

This is why you work in real estate and not as an economist. The world has printed trillions of dollars during the pandemic. What do you think that does to real estate prices? The building is not worth MORE - the currency is simply worth LESS.

​@@gooel The Us government has been printing money and giving it out to people as "free" and now they are gonna pay the price. Also, many of these people for the last year or so have been living basically rent free, when the tenants eventually get booted off, many of them will likely thrash the place as a form of retaliation, and many of these landlords will just sell their properties and dust their hands off, while making some good money, and that will be the last chance to get a house at an affordable price. Then prices will increase and basically never go back down again until they stabilize again. Hope the "free money" was worth the years of probable stagflation we are gonna get. And the average dude is just gonna tell how this was a "failure of capitalism" what a load of bs, these people don't even understand the most basic things about economics. Why is college expensive? Is it a failure of capitalism? Or is it because the government mandates that everyone gets a shot at it if they want even if they normally would not meet the standards? Why do you think they keep lowering the standards for getting into college? That along with the fact that they basically nationalized the student loan industry, and they wonder why college is expensive, failures of capitalism. Or healthcare being expensive for pretty similar reasons, basically obamacare, the government mandates that you cannot turn anyone down for insurance, so who do you think has to pay for people who cannot? And if you cannot turn anyone down, that also directly results into people caring less about their own health and trying to stay in shape, because if they cannot turn you down, why even bother trying? So is it a failure of capitalism? Or simply the government mandating things thinking that they will make things better, while in reality they make everything worse? In the end capitalism is simply competition, to embrace equality is to embrace failure, because to have equality you must bring people who are above you down to your level, and when you do that, you ruin your economy, because no competition means stagnation, you wonder why the rich is getting richer, but you never stopped to think, is my standard of living lower than someone from the fifties or sixties? Because i assure you it is not. Because while it is true that the rich is getting richer, the poor is also getting richer. And that is in spite, of the welfare they are pushing, all of the socialism which is getting to the point of borderline communism, capitalism is that effective. But it creates wealth inequality which is why people hate it. It's really funny to see some of the wannabe economist that talk about how we need to address income inequality and all that trash, in the end you are just looking for an excuse to steal from someone that is more successful than you because of envy and resentment, it's really pathetic.

@@gooel This has been an issue in the making since before the pandemic.

Commercial real estate is imploding because employees are demanding more work at home ability, & employers are seeing that they are saving $$$ on not having to maintain offices whilst not losing much in the way of productivity. Of course there are old school boss holdouts (like my last 2 Horrible Bosses) who resist this change, but change is always Inevitable.

he has a seemingly deep understanding of things on paper

@@jasonzhang3775 I‘d say this video is quite comprehensive and contains enough information for a 15 minute long educational video. Most, or I'd argue all the information mentioned in this video is accurate. For deeper analysis I'd recommend essays specifically written for the analysis of the Chinese real estate market.

As a Chinese person on China or a non resident?

@@jasonzhang3775 Because your government hides the skeletons in the cupboard.

What will happen when the golden generation needs to retire? Is this discussed in China?

Hopefully the US can avoid any kind of economic crisis... We still have the demographic crisis, an economic one will just compound the issue.

yea, no boring shorts

Japan had been at continuous war for over 30 years by the time 1930 rolled around.

Or Japan post-WWII until the 90s... They've stagnated ever since.

@@18pluskiddo Is that reallly bad though? They have one of the best HDI scores and have the 3rd largest economy. Plus the median wealth is larger there than in Germany or the States. Can you really expect to grow infinitely while having finite resources?

Well I think China is fine. Their civilization has been in existence for 5000 years to prove that. The western civilization on the other hand are only 300-400 years at most. I suggest the west worry about themselves instead

@@blardymunggas6884 China destroyed its cultural history under the CCP. The nation itself will fall. The people will rebuild.