Bank Collapse in China?

Bank Collapse in China?

Here we want to discuss the Youtube video “Bank Collapse in China”. We often heard the story of Chinese state banks financing bankrupt SOEs and facing a financial crash in China which might trigger an international financial crisis many times in the last 3 decades. Nothing happened. The doomsayer failed. However, the exponential debt growth, the cyclical downturn, overcapacity and overaccumulation of capital and the Sino-American trade war could make a difference. The CPC tries to solve this by more injections of new credit, take over of the failed banks by the state, mergers, stimulus programs and the New Silkroad. But the failure of three banks, the Bank of Jinzhou, Hengfeng bank and Baoshan bank alone are not enough to come to a crash conclusion. But it could also be US disinformation propaganda. However, a crisis in the financial center Hongkong might have an impact on the financial system in China which might be a reason that China yet has not intervened in the special administration area. One indicator is interesting. The decline of private households saving rates in China. How to interpret this? More domestic consumption or the Chinese have to spend their last money? And what about the real estate bubble? On the other side, the New Silkroad is an outlet for the Chinese cyclical overproduction crisis and brought some economic stimulus as did China´s WTO membership 2001 before. But the New Silkroad/BRI/OBOR is not mentioned in the video with one word. Its perspective of success, a new debt trap, etc. are also not analyzed in the video. And I think you could make a similar video about a coming crash of the US financial market as the debts and debt ratios are also rising, be it consumer credits and private debts or state debts or about the Eurozone or Latinamerica. However, we want to recommend this video as it brings some interesting facts, but in our opinion not the whole picture. As we have just experienced the video was removed as a link from our website. Maybe the authors have problems with their own description of a coming Chinese bank crash.

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