China will not become this century's Superpower, nor will the Renminbi become the world's reserve currency . . .
China Evicts Investment Firms Amid Fears of Unrest
. . . China might not make it through the decade!
These are the actions of a totalitarian government facing down the barrel of a deadly existential financial crisis. The CCP is tap dancing as fast as they can, and this might just give them the slightest bit of breathing room.
"China’s authorities, seeking to forestall potential social unrest due to growing failures of investment firms and online lenders, are ordering many to break leases and close their storefronts on busy streets -- lest they become magnets for protesters.
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Now, with almost 1,000 online lenders having collapsed in the past year and fraud becoming more prevalent at China’s countless wealth management firms, authorities are acting to curb their growth and head off potential instability.
"The tightening control against P2P lenders highlights the growing concerns of the government that such operations can get hairy and out of their control," said Hu Xingdou, an economics professor at the Beijing Institute of Technology. "Such P2P operations could involve hundreds of thousands of people, and could easily cause social unease if the companies run out of cash.'"
Pray tell what do you mean, "if the companies run out of cash"? Perchance did you mean, "when" they run out of cash? Because absent the CCP tossing a few billion at it this, it is only going to grow, and metastasize.
"Then things started to unravel as angry investors, mostly the elderly, started showing up to demand their money back from some failed firms, and police visits became more frequent, Tao said. The district government forced the companies to break leases and leave the downtown area late last year for fear that more failures would stoke social unrest and hurt the image of the city where the G-20 summit is to be held in September, he said. Now all those finance startups are gone, leaving massive vacant space and the rent plummeting, Tao said."
You know, if you relocate these businesses out in the middle of nowhere, it will likely draw protesters there, and the CCP could simply cap the protesters one by one as they come out to protest. No one would even know! Just make sure it is by a rail head or better yet a biowaste incineration to electricity plant. The electricity plant would be brilliant since you could just fork the bodies right into the the burner and turn the waste calories into electricity! This would eliminate the debt problem, resolve the protesters concerns, and lower the price of electricity, threefer!
Black humor aside, China has a host of serious problems from monetary flight, to bad bank loans, to a rapidly slowing economy, to growing unemployment, to a near infinite number of financial shenanigans, and that is barely scratching the surface. I am expecting a hard landing, and with the way the CCP is acting, soon.
China Tells Economists To Be More Upbeat, May Take Stakes In News Websites
The Great China Ponzi—-An Economic And Financial Trainwreck Which Will Rattle The World
Rattle maybe, but the US will not be particularly "rattled" by this unless it triggers a truly massive war in Southeast Asia, then maybe.