Truth about Evergrande: Chinas housing crisis, Soros says BlackRock’s investments ‘tragic mistake’
so what is evergrande guys give you a quick summary evergrande is a property developer the largest in china and currently it has total liabilities of more than 300 billion and nearly 800 projects across china and its shares has recently fallen by 80 percent because in august it was warned there's a risk of default and there is also another property company called fantasia and that's defaulted on 206 million uh on on a lot of his offshore bonds so it's all of the papers in the western papers um first of all a lot of these western papers um are worried because a lot of western banks and investors have invested into this company and they could lose all of that money in fact they have lost a lot of money so a lot of them are worried and then you have all of these other china haters who are like yeah this is gonna cause china to collapse this is the beginning of the end china's going down china's gonna default you know they're gonna have a recession see all of these china haters they need all of these investors and even to this day there's articles all about evergrande so why is it led to this guys why why has it come to this this is because the chinese housing bubble is a big issue and the chinese government know this because you know the past few years um the property prices have gone through the roof in china and is way way above what people can afford i think it's 40 sometimes 50 times what people learn in china while in london it's around um 13 to 15 to 20 times so it's almost double really well obviously you know the london people do get higher salaries but in china the salaries are lower but it's you know 40 50 times where you can afford is it's really is too much and and and the gdp has been growing in china and most of it has been based off on property values as well and property investments and speculation so there has been a lot of changes that the government has been doing the government has seen this and what they want they want they want a gdp growth which is based on proper doing work rather than speculation on property prices and things like that so that's what the government is doing and this year they're doing a crackdown on a lot of companies and one of the crackdowns is it's called the three red lines and they basically want to stop a lot of these chinese companies from getting too much debt so evergrande has been basically getting a lot of debt to pay off other debts and pay off other property i mean buying of other property land and also doing construction work so they've been buying debt to pay to basically service their debt and also service their apartments as well um so obviously evergrande has grown very fast in a very short time and he's one of those companies who has really taken advantage of the huge bubble um property problem that china has has gone into so things are changing now guys because um what the chinese government has realized is having a huge huge private debt like this and having property bubble based on speculation it's not good for the chinese government not good for its people and if he carried on doing what he is doing he would have eventually bought down china with a big bang so they're stepping in now and stepping in now might be you know might be a good time to do it i mean might cause some some downturn that might cause some issues but in the long term it's a good thing guys because you cannot have these huge companies and property conglomerates racking up huge debts and you know putting big financial risks on the country like what lehman brothers did you know you know once laymen brothers went down see the financial crisis that happened in 2008 to the in the west took him years to recover from that so you you know you don't want any of that china doesn't want any of that so they had to put a stop to it somehow and um and this stop would cause some hardships some people would lose money um but you know they will get get out of this crisis and they will be better for it because if they didn't do anything everything would have just spiraled out control to be honest so i want to kind of talk about i want to talk about george soros and many of you know that he's one of the great american investors so he's recently come on board and said blackrock's china investments are a tragic mistake so he's also saying that the blackrock initiative imperiled the national security interest of the us and other democracies because of the money invested in china and will help prop up president xi's regime which is repressive home and aggressive abroad so why is it saying this i also want to put your eyes into this article as well geosaurus dream to turn china into a neoliberal gravitization of so i want to kind of explain what this article says and i'll try and give it to you in my own words so basically what he's trying to say is he wants china to become like the soviet union or russia back then when yeltsin opened russia's stock exchange to the american investors so back then i think it was between 1994 1996 russia's stock exchange was one of the biggest in the world so what soros wants to do is take all the riches like it did with russia take all of the riches make get all of the profits and then you know send it to all the capitalist companies all around america sen make the rich go richer in america and he wants china to open up his borders and open up his financial system so that these americans can get rich so that's what he wants so he wants to take all of the riches from china and he wants to destroy the economy as you know you know the rich american companies are the ones that get the rewards not not china so back then when yeltsin was in power the russian stock exchange between 1994 1996 you know was opened up and you know what that's one of the reasons why russia economy is doing so badly right now is still not recovered you know literally america's took all of their wealth and then put loads of sanctions in their next couple of years and throughout the throughout the history and completely destroyed the economy and they are still destroyed and that's the plan with russia when it was you know in the cold war and that's exactly america's plan what it wants to do with china so soros is furious that china has not opened up its financial system so american investments bankers would get rich from it he's not he's very angry that china is not following the capitalist and neo-liberal policy that the america american systems are running on um china is currently following a socialist policy to keep economic benefits at home to benefit his own citizens so that's what china is focusing right now you know soros wants sanctions and he wants companies to stop investing in china because he's not getting what he wants you know he's like a little kid throwing his um toys out the pram because um china is not making him any money so he wants to steal all the riches like he did with russia and even japan even you know one of the reasons that japan's economy has not been been doing well america has been stealing japanese money for years as well you know and the same with korea you know these um vessel states who open up the economy so that americans can get rich you know but it's not happening to china it's and china's not gonna let it happen so as you can see from this article he's asking black rock as well as other investment companies to stop investing in china and stop pouring billions of dollars into into china so what's wrong with his thinking then so i'll tell you what's wrong with his thinking he thinks that china needs american dollars to build factories he thinks china needs american money it does not he may have needed it 40 years ago 30 years ago even 20 years ago but it doesn't need it now mate you've got you know 1.4 billion people coming out of poverty and most of them are in the middle class you know china is moving from low wage into high skilled high wage and also high technology products you know the he's thinking that china is the same old china 40 years ago where he needs american money it doesn't need it so that's why it's wrong it's very old-fashioned you can see he's an old man old senile basically like biden you know he's very old-fashioned with his thinking doesn't think about the modern china he doesn't know anything about the modern china he thinks china will fall apart without u.s capital and without us investors you're wrong mate you're absolutely wrong you know he's living in a dream world where he thinks you know he thinks he like for example he has a girlfriend and he thinks his girlfriend needs him because he's all the money and he's like go then you know go leave me then you know what what are you going to do without me what are you going to do without all my money you know you you know you're not going to leave me you need me you need my money i'm rich blah blah blah and next day he turns up into his apartment and she's gone you know you basically think that people need you you think that countries need you well they don't you know china is well capable of standing up by itself and look at china right now compared to 40 years ago 30 years ago 20 years ago even 10 years ago look at that technological advances china's system has changed now you know it doesn't need blackrock's money you know it doesn't need americans money at all so him asking chinese businesses to stop investing in in china that's just gonna affect chinese business i mean that's just gonna affect american businesses because where else you're going to get 1.4 billion people you know you got access to a huge market there i mean recently with all this coronavirus stuff you know there's films coming out in hollywood like james bond and goldie's um you got shang chi and all you know black widow all of his films coming out in hollywood they can barely make about 100 billion in the box office and look at china's latest film the the the battle where it was a battle about chinese soldiers fighting in north korea and that film has grossed over 500 billion and is still making money you know it doesn't china doesn't need american dollars anymore china doesn't need anything from america so people think that china is about low-skilled labor um cheap factories infrastructure what people don't understand is china has some of the brightest minds in the world um governing its economy and and these mines have been studying abroad they've been studying in china they've been picked the best of the best you know people that work in these industries you know they're hand-picked you know even president he's been hand-picked to be the best of the best you know each person for each role in china is hand-picked it's not like in america you go to an interview or basically your dad's famous or your dad's got a bit of money and you know that's it you get that position no it doesn't work like that in china you have to work for for your positions you got to be the best of the best for whatever position you're in and the and and these chinese um think tanks have looked at the western model for years and they've looked at the western capital model and they've looks that we they look the american model and they've seen there's a huge gap between the wealthy and the poor and the gap is growing the poor are getting poorer the rich are getting richer people like jeff bezos and making billions while there's people starving and all of america and people dying um you got hundreds and thousands of homeless people all over america the middle class is just basically becoming homeless because you know first of all if you lose your job you basically lose everything in america you lose your health care you can't pay your rent you're basically on the streets so a lot of people are becoming homeless in america and and you've got to look out there kind of oppo deaths and covet deaths you know kobe desp over 700 000 and people dying of heroin and other opioids over a hundred thousand this year already and you know then you call the murders and things like that and and and don't forget about all of the people in incarcerations as well you know when people are you know having poverty where where people are in low income when people are homeless you know they do they do crime and and it brings the rest of the society down while jeff bezos and other million billionaires are you know basking in the wealth but china doesn't want that guys you know china trying to build a system where everybody wins and i love how china basically brings people out of poverty gives them prop gives them houses to live in gives them away to make money and you know he's trying to share the wealth amongst his people but china can see that there is a big problem with the property market in china as you know the property market has gone way way out of control and especially with everground and when blackrock first went into china last year i think it was last year early this year i can't remember the exact date at that time you know the chinese property market was still very very hot and and blackrock was really happy they were just rubbing their hands in glee they think yeah you know we're going to make a lot of money and this is when over the last few months china china started clamping down and um so they started clumping down and companies like evergrande are being affected and then blackrock is also being affected because they've got a lot of money into property sector in in china as well so they thought they want to make some easy money and and with black with blackrock you know they are very much speculation they do a lot of speculator investments so it's easy money for them to put it in property because they know property prices in china has been shooting up last few years so a lot of their money is in property and evergrande so this is why blackrock's you know really worried and soros is really angry because he thinks all of this money that blackrock's been putting in they're going to lose it and rightly so so without the granddaddy house prices over the past few years have been rising because of speculation and so you buy land or property and watch it go up in value without working and there's obviously two ways to make money in china you can work hard for a living or you can buy property and watch the you know price go up and rental and things like that so there's hard-working ways to increase gdp and there's the soft work in ways to increase gdp by doing nothing basically just sitting on land and watch the price go up so that's the difference between you know china really and and the west china is doing something about it they look at the western system and they can see it's hugely flawed and the flawless has been popping out over the last 10 20 years and is very very very visible now especially with amount of people that have gone into poverty in america from from the middle you know middle class system is very very flawed so what wall street wants they want to grab these chinese assets on the cheap so they can sit on it and do nothing and get the profits so let the chinese do all the work while these wall street sharks get all their money basically so that's what they want so without the grande she said you know properties are there to be lived in not speculation so the reason i said that as you know that there has been a lot of ghost cities all over china the last couple of years few years 10 years even 20 years and you know all of these property companies have been building apartments thinking you know eventually someone will live there based on speculation and he doesn't want that and he says you know these properties are for chinese people to live in they're not based they're not there for pro speculation they're not there to be kept empty while property prices rise you know you can't have a system like that you know if you build a property people need to stay in it you know and that's that you know that's how you should be and and china knows that you know with increased you know price of property the cost of living goes up and inflation goes up so they're trying to put a stop to it and which is good you know best time to do it is now in the uk we have million pound houses all over the river thames and they're always been built and then you know if you look at the prices they're over a million and you know some of them even 2 million 10 billion even you get penthouse apartments but when you drive past in the night there's no lights on on and you think you know what's going on or is it nobody live in these apartments and then you contact your local estate agent or you check the internet and you see if there's any properties available in that apartment and every single property is sold so why is it all empty and while everything is sold you know why is it all empty why is there nobody living there because you have speculators from all over the world buying up these properties around london not living in them and just sitting and waiting you know they they don't even rent them they're just waiting for the house prices to go up and go up and uh and that's what that's what it is in in china and exactly the same system in uk and it's a huge problem it's a huge bubble hub that's happening all over the world and and this is gonna cause a huge crash in this in the future um you know layman brothers is nothing to compare to what's coming so as you can see china is trying to do something about it um china wants its gdp to grow the right way not through property speculation so that's why the you know china is clamping down on everything it's clamping down on companies such as evergrand and bloody evergrand i mean come on these guys you know they're opening their own ev company and all of these other companies they bought a sports team with you know debt it's not even their own money they bought you on debt it's crazy i mean you can't let chinese companies get away with doing things like that so if ever ground does fall it would be a good like lesson uh not only just no not only to have a grant but to also other chinese companies as well not to get into huge debt so it would be good for the future of china if this happens i mean in the short term there will be a lot of people angry there will be a lot of people who have lost money but the long term this would be going to be the best for china and and sometimes you know you have to do these things to think about the long term short term it might cause a lot of you know anger but you know this has to be done because you cannot let these companies get into huge financial debt which can cause a huge issue to the chinese system in the future so that's what i wanted to say really about evergrande and all of these chinese haters or anti-chinese who are saying this is going to cause china to collapse and this is gonna make china go into recession it's not gonna go into the recession it's not gonna collapse guys you know this is property basically what china is gonna do they're gonna get hold of all of these properties uh get them finished and sell them off um they might not make a profit because i hope property prices have gone down but these are actual assets you know once they sell off they'll make money um everground itself will be broken down into different sections uh there'll be a section for the ev and there'll be the properties market and property uh development company will be broken down and sold off yeah there will be some heartbreak but this isn't layman brothers guys this is not going to be layman brothers and um china has got deep pockets and he can overcome crisis such as this and to be honest this was coming sooner or later so it's best for this to happen now rather than later and it's a good thing that china is clamping down on it now rather than five years down the line or ten years down the line ways it's going to be even a huge risk you know you cannot let companies such as this pick up you know debt after debt after debt somebody had to put a stop to it and they're doing it now so so yeah um those people who are going to say that china is not going to gonna china's gonna collapse no they're not gonna collapse mate you know this isn't it's gonna take a lot more than that so keep dreaming anyway i'll see in the next video and i'll um see you guys soon take care for now bye
2021-10-11 17:42
