The Evergrande Special
China’s biggest realty conglomerate has filed Chapter 15 bankruptcy in New York. What does this mean for the US dollar? And why is this insolvency claim allowed from America’s greatest adversary?
The self-harm that America is inflicting when it comes to economic policy almost seems too ignorant to be natural. China is being allowed to file bankruptcy in America for their failed business ventures, while the American people are drowning in debt. Americans are living in an America where other nations and foreigners from those nations almost seem to get a free-pass when it comes to America’s own laws and principles. America’s small business owners are held to a better standard than even the nations the American government labels “the enemy.” Now the American financial system has to handle the burden of failing Chinese Communist companies in a market that is neither free nor prosperous.
With friends like the American Government, who needs enemies? The crony-capitalist system is once again rewarding those who have the most money and continues to stomp on the tiny people just trying to survive. Every drop of loyalty to actual Americans is gone. The American financial system is better friends with its enemies than it is with the American people. While Hawaii was burning from “wildfires” for what many speculate is because of residential land, New York was forgiving the Chinese Communists for faulting on their loans by American financiers.
Not even days after Maui residents’ houses burned down Newsweek reported that investors were “calling Maui wildfire victims to buy their Hawaiian land.” More than 800 people are still reported as missing from the fires that burned over 2000 acres of land with 2,200 structures completely destroyed. Multiple posts on Social Media confirmed that calls by investors and realtors were looking for newly homeless families to sell their burned-up property just days after their whole lives were destroyed.
In this newsletter it is well documented that a parasite-class of wealthy billionaires are willing to do anything to make money off of the misery and fear of average Americans. The hypocrisy of a nation that is built on freedom, possibly allowing or perpetuating the destruction of residential neighborhoods for profit is appalling to say the least. That would be something a political scientist would expect from the Chinese Communists, but not from America.
Were the fires set on purpose? Nobody knows, and nobody is willing to say anything, yet most people wouldn’t put it past the current American regime to burn down entire neighborhoods to make a couple bucks on the market. This elitist establishment regime constantly spits in the faces of the American people, and then tells them to mask up to slow the spread.
Last week, the Chinese real estate Evergrande Group filed for Chapter 15 bankruptcy protection in New York, according to Forbes News. After years of financial struggle that facilitated “China’s ongoing property crisis” the delinquent Chinese Communist Corporation has been given what is basically a blank check as it does a “restructuring plan.” Apparently the filing was made days after another Chinese real estate company called Country Garden “saw its stock plummet to its lowest price ever.” It is now more than evident that China’s overpriced property market has completely collapsed in a communist system where everyone should get a free or fair-priced high-rise apartment.
The amount of net losses that Evergrande is responsible for are about $81 billion dollars according to financial records made in 2021 and 2022. The question is: who is going to pay for it? Somebody has to pay for it and the answer is quite clear, the American people. We the people, are going to have to pay for China’s bad returns on investment as it is racked up on our insurmountable debt.
American investors that should be held responsible for their own disloyalty to American realty markets are not going to be held responsible because responsibility has been abdicated to the US court system from a country that has no court system at all. In authoritarian systems like China’s, the prosecutor is always right, and you are guilty no matter what; there is no jury, there is no retrial.
The Chinese Government is its own financial system that literally acts like a corporation that is only beholden to itself. Imagine a company that is never obligated to record losses, that can buy and sell its product at any price it chooses for no reason at all. China has Cart Blanche when it comes to the narrative that its nationalized corporations are making money and can fudge all the numbers that say otherwise. The difference with Evergrande is that there were so many “return-less” foreign investors that they couldn’t create a lie good enough to cover up the economic calamity.
Whatever China decrees is “the numbers” is the unrelenting false truth when it comes to the giant corporation known as the Chinese Communist Party. But in actuality, the CCP is beholden to the American dollar and western investors. Without the American dollar and its western foreign customers backing the Chinese Communist corporations, the house of cards that is the Chinese Communist economy would come crashing down. This is the Matrix world financial system showing its real infallibility and false dichotomy when it comes to the capitalism vs. communism rivalry of debate. Also, this is the reason why China is so heavily invested in the perpetuation of the BRICS alliance and their aspirations for currency creation.
In a fit of sadistic surrealism the American system has to be the adult in the room and protect its assets from a country that despises the very system it is using to destroy its own fri-enemy, America. American taxpayers are once again footing the bill and racking up a debt from a country that its own politicians claims it is indebted to. I’m sure many Americans have heard that “we as Americans are in debt to China,” meanwhile China is filing bankruptcy protection in our own financial system.
The Chinese Communists have to be mocking Americans and laughing at them as they use the un-free free market against us. Would an American company ever be able to file for bankruptcy in China? Or would any other nation be able to file? This American self-debilitation and self-flagellation has to end at some point in time; it won’t last forever and will end with the demolition of the dollar. Once the dollar falls world markets may never reconcile, and at best, the world will be thrown into despotic chaos. Sadly, Evergrande filing for American bankruptcy is just the start of the ensuing economic insanity.
With the Evergrande Special, America will be covering the bill as the Chinese walk out the back door with the food. Forget eating our lunch, they are eating our future lunches and every lunch we eat forever. According to uscourts.gov, Chapter 15 was a U.S. domestic adoption of “the Model Law on Cross-Border Insolvency promulgated by the United Nations Commission on International Trade Law in 1997.” This is another example of self-defeating financial laws that the US has forced upon itself.
Surreptitiously, the burden of insolvency was placed on the American financial system by the United Nations over twenty years ago. The International business clauses of debt-burden were arranged around the same time that the Clinton administration negotiated the horrible terms of NAFTA. The basic description of Chapter 15 claims that “The US court is authorized to issue preliminary relief as soon as the petition for recognition is filed,” meaning Americans are going to be paying for the Chinese Communists bad business decisions.
In the run up to the bankruptcy, the unaccountable Chinese government was criticized for creating bizarre conditions of aptly named “ghost cities,” where entire skyscrapers lie vacant because greedy communists charged too much money to allow average Chinese citizens to afford nice living expenses. Most Chinese citizens live in suburban shanty-towns and farms with dirt floors as these words are being written.
Wait I thought with Communism everyone gets a free house? Well, that turns out to be a fairytale told by fantastical ideologues. In a report by allthatsintersting.com, the Chinese government had over 50 abandoned cities with giant empty buildings that “painted a dystopian landscape.” The backwards communist society built giant metropolises as it continued to lie about the impoverished communities that could barely afford to eat, let alone live in a high rise apartment 50 stories up.
The Chinese Communist government does not acknowledge the poverty of its own people because it doesn’t have to. It claims its middle-class is the biggest in the world, yet the average worker can’t afford to live in a nice government-supplied apartment. The CCP pays for crony-capitalist propaganda campaigns from the World Bank to put out fake news that China is an upper-middle-income country where 800 million people have lifted themselves out of poverty. Yet it is more than obvious, when you look at the average income of a Chinese worker it is marginally less than the income of working Americans or Europeans. The Chinese Communist Party fudges the numbers and the facts as it pretends it is doing favors for its non-existent “upper-middle class.”
In reality, China has some of the worst working-conditions and the lowest average incomes for its workers as their population is steadily declining. Even when you account for their higher than usual populations their numbers still don’t add up when it comes to their middle-class claims. Pretending is their strong point as nobody gets a free meal in China, let alone an affordable high-rise apartment. The Chinese Communist Party should at least have rent control for realty developers considering the party man-handles every business in China. There is no such thing as a free or fair market in China as they attempt to money scam their own citizens on rent prices and property market-value.
American should not be facilitating its so-called adversaries to help impoverish their own people with unaffordable housing. America has an affordable housing crisis of its own that it needs to focus its financial power on solving. Our so-called enemies should have to handle their own finances, and bad American investors should have to pay for refusing to invest in America. We shouldn’t be incentivizing outsourcing of what is basically loan-financing to delinquent nations that feel animosity towards our way of life. America is facilitating and financing its own downfall, when we finance delinquent communist corporations like the Evergrande Special.