China's Dangerous Turn: Central Bank Breaks Rules, Ignites Risky Money Printing

[@tondo6912]

Excellent analysis that has not been picked up by western analysts

[@paulmaher3358]

Thanks Don

[@goldengregory1]

Brilliant

[@controllerplayer1720]

massive printing of money cannot help the economy of Central Party Committee..

[@nfuryboss]

China can learn from Zimbabwe for change.

[@animejanai4657]

You cannot predict how much money was printed by looking at the highest serial number. China has printed currency notes with DUPLICATE SERIAL NUMBERS. That was mentioned in other youtube channels including the ones by Serpentza and Laowhy86.

[@TomTomicMic]

It does in the short term help the CCP, in the long term it's another disaster, but the CCP are blinkered to that, Xi's economic "savvy" is Zero, he thinks double entry book-keeping means you can spend the money twice!?!

[@araara4746]

Smart people want to hear the truth, stupid people want to hear what they want to hear, therefore stupid people are the biggest market for people who make money on KZbin by lying to their viewers.

[@nfuryboss]

What's more surprising is that Xi managed to come up with US$50 billion in investment loans to whet the appetites of the African delegates to the recent Africa-China Economic Forum in Beijing. The money must either come from printing or common Chinese bank savings! This mirrored what mao Zhedong did in his Great Leap Forward of sending grains to Russia while tens of millions of Chinese starved to death at home.

[@richardsilljohnson6377]

You nailed it - timely and significant- Thank you for that service.

[@DK-ev9dg]

😮😮😮how about America?

[@powershift2024]

@@DK-ev9dg it's fine and has been for 250 years, always comes back bigger and stronger. China? It's not even a developed country and already bankrupt. Back to the gutter oil noodles champ.

[@CogentMind]

Good analysis thanks

[@djparn007]

Thank you, Don. 👍

[@ryanreedgibson]

It would be nice to see the people stand up against the CCP.

[@TomTomicMic]

Nice would not be the ideal word as any protest or insurrection of the Chinese citizens most probably would end up in a bloodbath (Although the mass protest at the lockdowns caused the CCP enough consternation to drastically change tack, but I suppose a lot of elderly people died!), can the CCP avoid the mayhem it is heading to on the economic front, unlikely with Xi in charge and "previous" investors clearing off, but it will have to get a lot worse, but I suppose as a majority the Chinese support Xi at present (Although One can imagine that this support is waning due to more citizens suffering from economic hardship), so it's a conundrum with Chinese Characteristics, as Confucius most probably said "they make their bed, they lie in it" but "We" don't have to, something the Chinese Leaders should take on board but for some reason they think they are going to ride roughshod over us!?!

[@mikeboate208]

I see that you didn't get the memo . THE CCP ARE THE PEOPLE .

[@araara4746]

Smart people want to hear the truth, stupid people want to hear what they want to hear, therefore stupid people are the biggest market for people who make money on KZbin by lying to their viewers.

[@emptiester]

How about you let china worry about china and dont pretend that you are the arbiter of political systems on different continents. What has china ever done to the united states besides sell stuff below domestic price?

[@Dragonbhat]

​@@emptiesterit would be good to see people rise against Budens stolen election. It would be good to see citizens rise against Starmer. These people can't question their own leaders and talk down to other countries. The above would be locked by FBI or Starmers police in a second.

[@powershift2024]

Extremely informative video Don. Thank you.

[@DK-ev9dg]

😂😂😂😂😂

[@powershift2024]

@@DK-ev9dg that's a lot of laughs. you caught a glimpse of yourself in the mirror again. 🤡

[@garyonuma]

thanks for the deep dive! aloha fr hawaii!!!

[@DancingShiva788]

I always look forward to your insights.

[@kensmith8152]

So much for BRICS

[@ItsJoKeZ]

sank like a bag of:

[@brianboye8025]

Now Turkey wants to join.

[@SeeLasSee]

It’s just a forum to meet and talk. Also a small international development lending facility which is not bad. But the countries have little in common.

[@mikeboate208]

No , I disagree . You cannot seize a nations assets , sanction who they can do business with , and threaten them with DEATH , and expect that people will TRUST you . The US dollar is garbage , the country is BROKE ! The US has weaponized the dollar into a control mechanism , The US decline has begun .

[@DK-ev9dg]

Loser

[@RajivSharma-en5lx]

Excellent.

[@DK-ev9dg]

He is thug

[@JJFrance]

Thank you

[@mskmsk7174]

Another great presentation.

[@nunuabiznus]

Great video!

[@JamesBrown-p6e]

Wow!That sounds like a really bad situation. Thanks for letting us know.

[@DK-ev9dg]

What would you do now?

[@powershift2024]

@@DK-ev9dg go to Taiwan, the real China. 👀👀

[@freepoet6737]

Good video, I wonder what the BRICS nations think of this?

[@markgarin6355]

Nah, they will just print up some more money....and reinvest in them bonds...

[@mennobaron975]

Essential info you find nowhere else!!

[@drcovell]

Soon enough, the 1000 yuan note will make eye-catching toilet paper. This type of fiat money leads to what happened in Zimbabwe!

[@BLTchemistry]

I think China may be trying to bring down the cost of its exports against a,weakening $

[@luminyam6145]

Oh dear, this is just going to make things worse.

[@GSXSF-250]

Do NOT accept Chinese money!

[@wenhu]

Looks like they learned from the US Federal reserve too.😂

[@midimusicforever]

China goes BRRRRRRR

[@trevorzealley729]

Which has the greater value , the bean counter or the beans ?

[@LivingWithGout]

China is facing a dual deflation and external inflation.

[@DK-ev9dg]

Ok fatburger

[@syjiang]

In other words, very low domestic consumer demand but excessive money supply in international market not commiserate with the level of export demand.

[@dendarius9906]

Thanks for the info. I wonder how are they going to deal with the massive local banks failure and the local government bankruptcy? The state selling land for money to run its business might have reached it limits as the value of properties decline due to over priced housing and a declining economy. What you said all played a role in their current problems notwithstanding the raising number of seniors citizens (about 500 million) due by 2040 and declining population that will put more pressure on local government.

[@syjiang]

What they have done in the past is get the state owned larger banks to take over the operation. Issue is unlike what happen in the 2008 where private banks took one look at Lehman's books and said no, these SOE banks cannot refuse the central government's demand and have to soak in the absolutely rotten non-performing loans and spread it wider into the financial sector. As for the local gov, they are squeezing the local population with all kinds of shenanigans like fines and tax audits to drum up revenue, coupled with massive reduction in spending. Some cities have shutdown local public transport.

[@DK-ev9dg]

128 banks are failing in USA. Don't worry about China

[@jennyvandermerwe9952]

What is happening to the excess stock (EVs PV etc) that China is producing where China cannot Export their overproduction?

[@parrotraiser6541]

On the bright side, people will be able to play Monopoly with real banknotes, worth as much as the ones that come with the game.

[@DK-ev9dg]

Clown, bitter and jealous

[@prime8krish]

Everything is a joke as end of the day, it is what the supreme leader wants. everything else is just for show.

[@DK-ev9dg]

😢😢😢like joe?

[@powershift2024]

@@DK-ev9dg Joe momma??? Exactly. 🤡🤡🤡🤡

[@davidgoold492]

I, as a regular viewer, would far prefer to see you speaking than watch endless video clips of bank notes being counted by hand or in machines

[@mattg8431]

Japan has been doing it for decades, US is running 7% deficit and it's getting closer to the moment when Fed starts buying government bonds since the private markets cannot absorb such quantities. The world is getting closer to the full scale money printing, China is not an exception.

[@bjrnhjortshjandersen1286]

Pissing in the pants to keep warm...

[@mikestewart4752]

Why are they printing more ¥? No one, not even the Chinese want that crap. I was in Niagara Falls 2 weekends ago and I visited 6 current exchanges looking for a 100¥ note. I got laughed at. They laughed at me Don! …. 🤔

[@TomTomicMic]

The Yuan is widely traded in Countries between a rock and a hard place, like Russia. The US Dollar is the World's reserve currency, the Yuan is the currency of last resort for foolish leaders who have fallen foul of the major financial institutions, however this is not the foundation to launch a new world order, most probably paving the way to the poor house!?!

[@syjiang]

fiscal shortfall. Government running out of money from loss of revenue after the real estate crashed and downturn in domestic enterprises.

[@mikeboate208]

Why would ya do something like that in Canada ? what did you expect ? I laughed too , and shook my head .

[@mikestewart4752]

@@mikeboate208 I want to put it in a frame along with a note that explains how many people Mao is responsible for killing. I have 2 teenage boys with LOTS of friends who come over. It will be a way to get these young minds to think about China’s current leadership in a way that will oppose their propaganda.

[@crosslink1493]

@@mikestewart4752 That's a good idea. I've got some old Venezuelan 'Bolivar' notes from a trip I went on down there when they were actually worth something. Today they're probably worth nothing more than the paper and ink value, but would look nice in a frame.

[@BeelP.]

Dangerous? China earns USD7bil per day from exports. They are monetizing just less than 2 weeks' export earnings. What are you talking about?

[@stingray9225]

Ccp is now in war economy

[@DK-ev9dg]

Ok fatburger

[@GeoffreyBrown-hq8vm]

Get set for currency devaluation

[@icls9129]

Same as every other government these days.

[@12wonton]

China stock market will continue to fall, but at faster rate.

[@DK-ev9dg]

Ok clown

[@chanakya_nan]

I keep looking at the Yuan to Dollar conversion... it seems quite stable to me - between 6.5 to 7.25 over 5 years. Even in the last 20 years it is stable. What am I missing?

[@syjiang]

That is the point. Their currency should not be doing that in normal market conditions. With the last 2 decades of massive rise in manufacturing export, their currency demand was rising rapidly as importers seek Chinese yuan to pay for goods which should have resulted in commiserate rise in currency conversion value. Over time that increases the overall prices for importers making their goods gradually more expensive overseas, while also making foreign imports cheaper for domestic Chinese consumers. End result is that their trade surplus SHOULD have slowly narrowed. It is a self correcting mechanism. But the central gov wish to preserve the massive trade surplus and maintain competitive export advantage based on low prices so they have been engaged in currency manipulation to keep the exchange rate fixed at those bands. If you look at Chinese M2 supply compared to the US M2, you will see Chinese yuan growth significantly outstripped the US and this is in context where USD is the most important international reserve currency most widely used in international transaction. Where do you think all that excess money supply is going? Their economy certainly have NOT grown large enough to justify that level of expansion. It is going to come back and bite them now. Decline in demand for Chinese export couples with falling demand for Yuan and leads to steep fall in Yuan value. Since China is now massively dependent on imports of oil, semiconductor and food, they need to defend exchange rate with foreign reserves to ensure those imports remain affordable. They have dumped a lot of Yuan out there and now we shall see if they can defend it or whether they will have to take a painful devaluation. Its also why they sold so much US treasury at significant discount last year, they needed the extra USD.

[@albertosanz8446]

​@@syjianggreat comment!!!!

[@OrionXpress]

Please also do similar study and comment on America

[@kimiyounasarukun]

Engagement for the engagement god, likes for the like throne.

[@kevoreilly6557]

It’s a shame that the people commenting on your well research insight shrub absolutely no understanding about what you said Key here is no one wants Chinese debt - this is the first step to inflation which is good given the deflationary pressures in China l, but points to hyper inflation in late 2025 and 2026 They key is people want USBonds - China doesn’t realize this is the difference

[@syjiang]

His research insight is quite good but I am not certain you fully grasp the key issue here. Government bond isn't the problem here, perversely there is actually a lot of demand for Chinese bond as they are viewed as the last safe refuge and domestic deflationary pressure make bonds an even safer bet for many financial firms. A few months ago PBOC took issue with how popular bonds became and tried to stop firms from purchasing more bonds. The key problem is how institutionally weak PBOC is and that once they circumvent the two key rules, their credibility as a central bank to not screw around with money supply is in jeopardy. Governments issuing bonds and repaying it with interest at maturity has no meaningful impact on the money supply. But if central bank comes in and start buying government bonds with money they magically conjure out of thin air while possessing no ability to force the government to be fiscally disciplined and repay the bond on maturity, we basically have unrestricted money printing. Domestically China is experiencing deflation due to significantly demand side loss but that doesn't mean the currency itself is appreciating in value. They have to commit significant foreign reserve to defend Yuan value if Chinese export doesn't grow after all these money printing.

[@MrBlaxjax]

It’s an interesting development. China appears to be suffering deflation so a bit of money printing might actually work. Seems doubtful as it’s more akin to magic than to regular economics but who knows.

[@syjiang]

No not really. Nudging a number around does not address underlying fundamental issues. Inflation/Deflation are just proxy metrics that needs to be interpreted with care. China's domestic deflation in their economy stem primarily from falling consumer demand, which comes from a combination of aging demographics (large chunk of population moving past peak earning/child rearing phase which represented highest consumption point in their life), job market insecurity, and no social security that necessitate massive saving for expected healthcare and retirement expenses. Had the CCP funneled money directly into the population's pocket books then yes perhaps the deflationary pressure could have eased. But they poured the liquidity into state sector enterprises, banks and investment entities. None of which is able to address the underlying demand slump and mostly used the funds to service previously accrued debt. More importantly it does minimal to improve future productivity. Internationally the currency will devalue and certain foreign imports that China cannot substitute like oil, semi conductor or food products will be more expensive, adding to consumer's pain.

[@merlingeikie]

He he Hitler tried that. Sold lots of wheelbarrows.

[@therealscot2491]

That was Weimar before Hitler.

[@Vancouver.Canadian]

I need to see hard data because I have not a clue where he got his information from.

[@riwjin]

That's not different from what others are doing, especially the US.

[@SeeLasSee]

Yes. China has more debt and a less balanced and mature economy. They are more dependent on food and energy imports.

[@cat-vv9xb]

The difference is the extent. The extent is in magnitudes of hundreds and thousands. It's like the difference between taking an xray and taking a thousand xrays at once.

[@syjiang]

It is quite different.

[@DK-ev9dg]

American debt is actually 128T not 36

[@powershift2024]

@@DK-ev9dg must be why all their banks are going bankrupt, oh wait, that's China. 😮

[@d-1beats]

The United States does the same thing with the dollar especially when it bails out Wall street and most recently durinf the pandemic

[@DK-ev9dg]

And causes the wars

[@mikeboate208]

This printing fiat money story is getting out of hand . The US has been doing it for 50 years , and is doing just fine . China has been adding to its gold reserves , and using dollars for foreign investment , reducing the counter party risk of the Dollar, by giving them to some one else . Dont discount the 100 billion trade surplus as an "anchor " . US seizures of Russia assets ,Iraq oil money , bank sanctions ,Venezuela , South China Sea , Taiwan , Swift and on and on ... makes this protection of the economy necessary ,don't you think ?

[@kmich7660]

Lavish bond issuances and financing for local governments should keep the US$18 trillion Chinese economy stable this year despite a festering property crisis, an IMF Asia official said on Thursday.18 Apr 2024 . Hmm! Official not digging? Tell us about US money printers running non stop.😊😊

[@勝則平川]

ドル・本位制を　捨てた・中国 ・ 同時に　空室・ビル　情報から　３５００・ゴースト・シティ情報へ　昇格

[@ciabuster6109]

'There was a historic surge in U.S. corporate bankruptcy filings in June, with the highest number recorded in a single month since at least the start of 2020, new data shows. ' - Fox10 News

[@n.k.8530]

Wumao

[@powershift2024]

​@@n.k.8530 poor little feller is trying to get his 50 cents.

[@cat-vv9xb]

You are right, but Chyna is far worse with multiple bank runs.

[@DK-ev9dg]

But this clown is China hater

[@DK-ev9dg]

​@@powershift2024yiu are fatburger, western shill and 10c keyboard warrior

[@BaronEvola123]

It's on purpose. Africa and the other BRICS countries will set up shop all over China and China already invested in The other countries.

[@chuckley99]

Thanks Don