As folks from Tahoma and nearby environs know as a result of the Mayor's posts, the economy in China is on a downward trend. This "trend" appears to be a continuing movement. The real estate bubble there has burst, big time. Over 50 companies have disappeared in the last couple of years. More companies will soon follow.
The citizenry has followed a path that challenges the Beijing lead into real estate: folks are no longer buying a place to live, they are renting in a down market for housing. Thousands of "buyers" who took out loans and put down payments on condominiums are still waiting for their homes to be built. Meanwhile, the Communist government in Beijing is tearing down buildings hoping to stabilize the market. Hmmmm. When did this ever solve a real estate implosion?
Now we also have other economic headwinds- those obstinate forces contrary to making headway. The Brain Trust in Beijing, run by the dictator Xi jin Ping, has announced that companies must return offshore funds to prop up the equities markets in the country, including its newest acquisition in Hong Kong where stock prices have tanked for the last couple of years. Oh, well, it's only money and is directed by Xi JP, chief financial officer of the Communist government. He announced that $280 billion must be returned to fix things up. At the same time, foreign companies are fleeing the Chinese economy for more promising venues(Vietnam, South Korea, Japan, Indonesia, Singapore,etc). Valuations of HK companies have plummeted, down 48% in the last year alone. Sure, there are international implications but the most severe are at home in XiJP Land, friend of North Korea and other redoubts of dictatorships.
What went on recently in Davos, Switzerland? A big party, not much else. A few concerns about Gaza, Yemen, Red Sea, Panama, New Hampshire, Atlanta, and maybe Washington, DC. Not much else. Keep an eye on Beijing, more to come.
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