How China’s Model of Dictated Economic Growth Blew Up, by Wolf Richter | STRAIGHT LINE LOGIC

https://straightlinelogic.com/2021/10/23/how-chinas-model-of-dictated-economic-growth-blew-up-by-wolf-richter/

The Chinese government steered prodigious amounts of debt towards real estate, and now China is paying the price. Perhaps a planned economy isn’t such a great idea after all. From Wolf Richter at wolfstreet.com:

The debt-fueled property & construction bubble that drove its growth turned into a huge explosive mess with an enormous amount of debt.

It’s mind-boggling just how important the residential property sector is to the Chinese economy, to what extent government-dictated economic growth was achieved by building more apartment towers, and it’s even more mind-boggling how much debt residential property developers have racked up, and how much household wealth is tied up in the property sector at multiple levels. Then there are the demographic headwinds the property sector has been facing for years, that are coming to the forefront. So now there is a property crisis in China that is making the US mortgage crisis of 2008 look like child’s play in terms of magnitude. The central government has been trying to deal with rampant real estate speculation and prevent it from going even more haywire and take down the financial system and the economy.Continue reading→

America Hit By Recession! | Call Me Stormy

https://callmestormy.net/2021/10/22/america-hit-by-recession/?amp=1
In a SHOCKING new report, a Dartmouth professor says America is in a GREAT RECESSION. Professor David Blanchflower warns that the US will enter a recession by the end of 2021. Learn about the coming recession and what it means for you! In other news, Jen Psaki, the spokeswoman for the deadbeat Biden administration, gets SLAMMED by critics after downplaying the supply chain crisis...

China Jawbones Coal Markets With Meaningless “Market Intervention” Headlines As It Becomes Desperate 

https://www.nationandstate.com/2021/10/19/china-jawbones-coal-markets-with-meaningless-market-intervention-headlines-as-it-becomes-desperate/
China Jawbones Coal Markets With Meaningless “Market Intervention” Headlines As It Becomes Desperate What’s wrong with communism? The latest example comes from China, where central planners told state-owned energy companies to panic buy coal which sent prices to the moon. Now the communist government is battling market forces with meaningless headlines to jawbone prices lower. …

OUR ECONOMY IS STARTING TO BREAK DOWN ON A VERY BASIC LEVEL – Nwo Report

https://nworeport.me/2021/10/11/our-economy-is-starting-to-break-down-on-a-very-basic-level/

Source: Michael Snyder

Do you remember how much optimism there was last January? Many Americans were entirely convinced that really bright days were just around the corner, but instead, things have taken a dramatic turn into the dumpster over the last 9 months.

The Afghanistan debacle was the worst foreign policy embarrassment in modern American history, the Biden administration is trying to deal with an unprecedented crisis on our southern border, and the way that our politicians are handling the pandemic is causing extremely deep divisions throughout our society. In addition, our economy is starting to break down on a very basic level. On a widespread basis, goods are not getting to the places they need to be when they need to be there, and services are often not available when people need them. As time has passed, the “malfunctioning” of our economy has spread, and now the coming mandates threaten to make things a whole lot worse.

Just look at the chaos that was caused in Florida on Sunday

Southwest has canceled 1,018 Sunday flights as of 2 p.m. ET, according to flight tracker FlightAware. That’s 28% of the the airline’s scheduled flights and the highest of any U.S. airline by a wide margin.

American Airlines has canceled 63 flights, or 2% of its operation, while Spirit Airlines canceled 32 flights, or 4% of its flights, according to FlightAware.

Overall, more than 1,800 flights were canceled during the weekend, and Southwest is publicly blaming the problems on “weather challenges”

“We experienced weather challenges in our Florida airports at the beginning of the weekend, challenges that were compounded by unexpected air traffic control issues in the same region, triggering delays and prompting significant cancellations for us beginning Friday evening,” the spokesperson told FOX Business.

“We’ve continued diligent work throughout the weekend to reset our operation with a focus on getting aircraft and crews repositioned to take care of our customers,” the spokesperson added. “With fewer frequencies between cities in our current schedule, recovering during operational challenges is more difficult and prolonged. We’re working diligently to accommodate our customers as quickly as possible, and we are grateful for their patience.”

Of course, that is complete and utter nonsense.

A large number of Southwest pilots in Florida engaged in a “sickout” over the weekend to protest Southwest’s vaccine mandate, and apparently, at least some air traffic controllers joined them…

On the record, they’re denying any sort of protest — but there are reports, citing airline sources, that a massive “sickout” went down, and that ripple effects are still being felt.

Regardless of what the truth here is … it’s screwing a lot of people, and causing a lot of problems. And, IF there is merit to the sickout speculation — it could also be a bad sign of what’s to come in other industries that might try to enforce vaccines on employees.

As I write this article, there are rumblings that pilots at American Airlines are organizing similar efforts.

Good for them.

In fact, we need bold people in every industry in America to start doing this sort of thing.

Perhaps if enough people start standing up, those that are trying to impose these mandates will start backing down.

Right now, we are already facing the most epic labor shortage in U.S. history, and economic activity is badly gummed up as a result. If millions more qualified people are thrown out of work in the months ahead due to these absurd mandates, that is going to cause unprecedented chaos all across America. A weekend of canceled flights might be bad, but it is nothing compared to the complete and utter nightmare our society will be facing if all of these mandates go through.

Even the military will be deeply affected. On Sunday, it was being reported that “hundreds of thousands” of our service members have chosen to resist the mandates…

Hundreds of thousands of U.S. service members remain unvaccinated or only partially vaccinated against the coronavirus as the Pentagon’s first compliance deadlines near, with lopsided rates across the individual services and a spike in deaths among military reservists illustrating how political division over the shots has seeped into a nonpartisan force with unambiguous orders.

So what would it do to the state of our military if hundreds of thousands of service members are kicked out in the months ahead?

That is a question that we need to be asking because it appears that this is actually what is going to happen.

On top of everything else, now we are facing a severe global energy crisis

Energy is so hard to come by right now that some provinces in China are rationing electricity, Europeans are paying sky-high prices for liquefied natural gas, power plants in India are on the verge of running out of coal, and the average price of a gallon of regular gasoline in the United States stood at $3.25 on Friday — up from $1.72 in April.

Most Americans may not realize it yet, but this is a really big deal.

There are more than 1.3 billion people living in India, and coal is in such short supply there that officials are warning that there could soon be widespread blackouts

Just like Chinese authorities ordering energy firms to conserve supplies at all costs, numerous power plants across India could be forced to adopt rolling blackouts as coal supplies run low. A minister in Indian capital New Delhi warned Sunday that blackouts could rock the massive city over the next two days. But the nation’s capital city isn’t alone in suffering energy shortages: it joins two Indian states – Tamil Nadu and Odisha – which have issued warnings about the growing possibility of blackouts due to dwindling coal supplies.

Other nations are facing similar issues. In fact, Lebanon just emerged from a blackout that lasted about 24 hours

LEBANON has finally got the lights back on some 24 hours after the country was plunged into total darkness by fuel shortages.

The Mediterranean country is battling one of the planet’s worst economic crunches since the 1850s in the wake of last year’s devastating blast that levelled a huge part of the capital Beirut.

If things are this bad already, how crazy will things get in the middle of winter when demand for energy is at the highest?

People need to wake up because the times that we are moving into are going to be completely different from what we have grown accustomed to.

It isn’t just the U.S. economy that is crumbling. Literally, the economic infrastructure of the entire globe is falling to pieces, and experts are warning that things will continue to break down in the months ahead.

So many of the things that you have been warned about are starting to transpire right in front of our eyes, and this winter looks like it will be very dark indeed.

Treasury confirms it knew government was paying out billions in JobKeeper to firms that ‘may not need support’ – ABC News

https://www.abc.net.au/news/2021-10-11/jobkeeper-treasury-report-firms-revenue-stimulus-josh-frydenberg/100529436

  • Treasury
    has defended its decision to advise the government to keep paying out
    JobKeeper after the first three months without imposing a test based on
    ‘actual’ turnover
  • Its report suggests that a different design of the scheme would have cost jobs and delayed economic recovery
  • Treasurer Josh Frydenberg says the scheme saved more than 700,000 jobs

APRA’s mortgage crackdown catches out hopeful home buyers – ABC News

https://www.abc.net.au/news/2021-10-07/apra-crackdown-on-maximum-borrowing-limit-hits-first-home-buyers/100518444

… this week, the financial regulator announced banks would have to start
demonstrating, from next month, that new borrowers were capable of making mortgage repayments if home loan interest rates rose 3 percentage points above their current rate…

‘China’s financial system could collapse’: What the Reserve Bank’s Evergrande bombshell means for Australia – ABC News

https://www.abc.net.au/news/2021-10-08/chinese-property-evergrande-collapse-damage-in-australia/100521564

… “If they act too quickly in addressing these

vulnerabilities, confidence in the implicit guarantees that underpin much of China’s financial system could collapse, which would lead to

financial distress,” the RBA says.

“In contrast, if they act too slowly, the probability of more severe financial stress in the future will increase.

“Continued bailouts also risk further entrenching perceptions of implicit guarantees.”…

After Evergrande, Chinese developer Fantasia can’t pay its debts either. That’s stoking real estate fears – Muunyayo

https://muunyayo.com/2021/10/06/after-evergrande-chinese-developer-fantasia-cant-pay-its-debts-either-thats-stoking-real-estate-fears/

Bisaya News

Fantasia Holdings, a Shenzhen-based developer, has failed to repay $ 206 million in bonds due on Monday, the company said in a listing. It is now assessing ?the potential impact on the Group?s financial position and liquidity,? it added. The property management company of Country Garden, China?s second largest developer by revenue after Evergrande, separately said in a filing that Fantasia failed to repay a corporate loan of around 700 million yuan (US $ 109 million). Fantasia had told the company that it was likely to ?fail? [its] External debt, ?added Country Garden Services.

S&P and Moody?s have given Fantasia “default” credit ratings, stating that failure to pay the principal would likely cause the company to default on its remaining bonds as well…

Evergrande shares suspended from trade in Hong Kong… – ABC News

Comment by tonytran2015: the end phase of a company following its bubble phase

https://www.abc.net.au/news/2021-10-04/evergrande-hang-seng-asx-rba-rbnz-interest-rates/100511914

…It follows Evergrande missing a second offshore bond payment late last week, failing to pay some of the interest owed on its roughly $400 billion in debt.