Chinese Savings Rates, The Digital Yuan and the Chinese Communist Party Social Credit System, Challenges For Chinese Investors cashing out with Renminbi – December 27, 2020,
The Chinese Communist Party has a corruption problem and the only reason the U.S Fiat Federal Reserve System worked was because of the perceived ‘independence’ of the Federal Reserve, which to its credit doesn’t always specifically serve or benefit the U.S People.
As demonic as the aforementioned sentence may sound, the United States exports its currency, and as long as your country is not in direct conflict with U.S interests you can spend U.S greenbacks anywhere. When it comes to China, their government has already shown its hand with its social credit score system, in which it can put restrictions on Chinese citizens who disobey government SOCIAL orders.
Now, in the West the whole purpose of money is for a sense of freedom, in China, it appears that they’re setting up a system in which money could be a burden. I do a lot of digital transactions, however, I still hoard and save cash, because I’ve experienced grid failures, I’ve experienced incompetent governments and I’m well versed in hyper-inflation.
The Chinese People do a lot of saving and the Chinese Government for the most part has been UNSUCCESSFUL in stimulating the Chinese economy, what the Chinese Communist Party has done an excellent job doing is printing money, which during a moderately inflationary global economy can be hidden, but the world is heading into a period of overt deflation and there’s nowhere for the Chinese Communist Party to hide.
Most people aren’t noticing it, but I can see it clearly, that Chinese Communist Party propaganda has become acceptable in Western Media. Because their propaganda has worked, they’ve been getting ahead on stories, the economic collapse that’s on its way could be covered up and prolonged if the narrative is presented to the investing public in the right way.
The Digital Yuan is one of the scapegoats of the Chinese Communist Party, however so is President-Elect Joe Biden, whom the CCP feels more comfortable negotiating with. From the information I’ve been presented, Joe Biden is compromised and corrupt, but in my opinion even if he wasn’t, I personally think both Joe Biden and Kamala Harris are too stupid to see what the CCP are doing.
A few members of Joe Bidens administration in which I’ll write about in later posts in just world would be considered compromised, but in this era where economic crashes are a thing of the past, everybody wants the party to continue so most people will turn a blind eye to in your face corruption.
My problem with both the Digital Yuan and all of these bad loans, is that both Joe Biden and Donald Trump have every intention on growing the size of government, I personally think under Trump the global economy would crash before the U.S economy would crash, however under Joe Biden, I think it will be the U.S economy that will crash first.
One of Joe Biden’s first actions as president will be to trap American energy in the Paris climate agreement, this will be bad for the U.S dollar in my opinion and as the dollar goes down, it will provide the Chinese with cover.
Now, once the U.S economy deflates and the Federal Reserve inevitably reacts, nobody knows what could happen, what everyone knows will happen is the cost of living will be forced up for America’s working class, and because most of the world is dependent n the U.S consumer, I suspect currency wars will ensue and that’s just when things will get really ugly, I think once the race to the bottom currency wars start we fight even forget about China.
I do think Chinese derived loans will go bad, but that will be least of people’s concerns because I think the U.S economy will be in free fall, but this may also trigger a global crash, it’s just ugly, I personally can’t predict exactly how it’s going to happen but it will be ugly. I highly recommend the reader, read the article below. Because it gives you a glimpse into the future especially if Joe Biden wins the 2020 election.
Chinese banks to feel fund-raising pain as investors fear bad loans | reuters.com
Interesting times ahead