Part V: The Looming Asian/Chinese Economic Implosion

Wednesday, April 4, 2018
By Paul Martin

SilverDoctors.com
April 4, 2018

capital reserves could diminish dramatically as well as some level of investor panic could set in to drive a “death spiral” type of event…”

by Chris Vermeulen of The Technical Traders

As we, the research team at www.TheTechnicalTraders.com, continue to deliver sections of this multiple part global market research report centered around China and Asia as a catalyst for an impending global market/debt collapse, we want to make sure our readers understand this process will likely play out over many months into the future. This is not something that we should concern ourselves with right away. This is not a warning that “the sky is falling and we need to run to our bunkers”. This is forward-looking research that indicates a strong possibility that China and Asia, along with many other nations in this region, may experience a credit/debt market contraction that could lead to another global credit crisis and we need to be aware of it and plan to profit from it. (Part I, Part II, Part III, Part IV)

So far, we have covered the history of Chinese property and equity market growth from before the 2008-2010 global credit crisis till now and have clearly shown that the Chinese property market is rolling over (downward) after the 2016 regulations were put into place to curtail the mass exodus of capital from within China. We have also gone over many of the correlative economic items that point to the fact that a 15~25% correction in any one market segment, property, equity, credit/debt or global markets that result in capital risks for China, could drive a contagion effect for the Chinese investors/government. In other words, a simple 10~20% price decline in two or more of these markets could put enough pressure on the Chinese that capital reserves could diminish dramatically as well as some level of investor panic could set in to drive a “death spiral” type of event.

Even today, our researchers visited the National Bureau of Statistics in China to continue our research and found the following :

Whereas growth rate of purchases (land), commercial sales and floor space sales and growth rate of fund for development have decreased dramatically just over the past 3+ months. When you look at this data on a year over year context, it shows mild contraction up until December 2017. After December 2017, the contraction in Residential and Commercial real estate activity is dramatic – almost frightening.

The Rest…HERE

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