China’s Credit Bubble Too Big for Their Foreign Exchange Reserves & Physical Gold to Cover? (Video)
China’s Credit Bubble Too Big for Their Foreign Exchange Reserves & Physical Gold to Cover? Video – Wall St for Main St
Jason Burack of Wall St for Main St says China is doing this because the normally opaque Chinese government desperately needs the influx of US Dollars and foreign capital. This would be the bailout before the REAL major bailout. Using other people’s money (OPM) for a bailout is preferred by the Chinese before they do a major RMB devaluation in the near future. Also, given how China’s current government is normally not very transparent about much of anything, it is VERY highly unusual for high ranking Chinese Communist Party officials and high ranking members of the People’s Bank of China (PBOC) to give public warnings and talk about Minsky moments, credit bubbles, and unsustainable levels of debt in their financial system.
Other experts like Kyle Bass, Daniel Lacalle https://mises.org/wire/crisis-or-stag…, and Louis Cammarosano of Smaulgld https://smaulgld.com/chinas-gold-save… just to name a few also agree that China does NOT have enough foreign exchange reserves from many years of trade surpluses and physical gold to cover their enormous credit bubble, which according to the PBOC website now stands around 220 trillion RMB ($40 trillion US Dollars) in size.
What do you think China will do to handle this credit bubble? RMB devaluations? Massive bailouts?