There have been several reports that Communist China’s economy is on the verge of collapsing.
It started when real estate prices started plummeting earlier this year, and has since spread to banking as developers defaulted on their loans.
Many banks are either outright refusing to allow their customers to withdraw money, or limiting how much money they can take out.
The Daily Wire reports:
Chinese developers have lost at least $90 billion in the last year, according to reporting from Bloomberg, as home prices have gone down for the last 11 months. Dozens of developers have defaulted on their debts, and many of them have stopped work on unfinished housing, which has sparked mass outrage and even protests as more than 80% of Chinese homebuyers take out mortgages and begin paying them down before their prospective home is completed.
This arrangement, which was once a source of easily accessible capital in a red-hot housing market, has left countless Chinese consumers holding the bag on half-finished homes that may never be fully constructed. Thousands of homebuyers are refusing to pay mortgages on unfinished properties in a mortgage boycott that has spread to nearly 100 cities and has affected over 320 development projects.
READ: Chinese Real Estate Collapse Throws Economy Into Crisis
The Ikea COVID stampede
Of course, this collapse is not being helped by the Chinese Communist Party’s tyrannical restrictions implemented due to COVID.
There was an interesting story recently about what happened after authorities discovered that a person within an Ikea store in Shanghai had come in contact with a person with COVID.
At that point, they decided to lock the store’s doors to stop the customers from leaving. This resulted in a stampede as people rushed the doors, being blocked by security, in an effort to escape. READ: Panicked shoppers at an Ikea store in China were locked inside for more than 4 hours because of a COVID-19 infection risk, report says
For the cynical
And only the most cynical among us would believe that the Chinese Communist Party’s (CCP) sword rattling over Taiwan is a blatant attempt to distract everyone from the CCP’s incompetence in handling the Chinese economy.