I haven’t been updating every twist and turn of the Evergrande collapse, but we’re going to look at it again because this Peter Zeihan video has a fairly staggering statistic. He asserts that there are 1.5 BILLION (with a B) unoccupied housing units in China. Even though we already knew about the ghost cities, that’s like an entire ghost nation for a China that was already headed down the economic crapper.
“A Hong Kong court has ruled that China’s largest property development group, Evergrande, is bankrupt and needs to be broken up. This is something that the Chinese government has spent a lot of effort on the last two years not happening.”
“There’s two big things that dominate the Chinese economy. The first is something I call hyperfinancialization: The idea that the government both de facto confiscates the savings of the citizen population so it can only go into projects funded by Chinese State Banks, as well as massively expanding the money supply to a tune of like almost triple what we have here in the United States.”
“It’s a public stability political control approach to finance. It’s not about profit, it’s about throughput, because throughput requires a lot of bodies.”
“Number one, you get companies like Evergrande, who gorge on all this bottomless supply of debt to build build, build, build, build, even if there’s no demand.”
“Second, you get a population who knows that their private savings is almost worthless, because the Chinese government is forcing them to keep it in the state banks, and they want to put it into a hard asset that preferably the state can’t control. And if they can’t get their money out of the country, then the next best thing is a hard asset in the country, which typically is property.”
“You have somewhere probably in the vicinity of 1.5 billion units in the country that have never been lived in, never will be lived in. So you’re talking about 100% overbuild, conservatively. Some estimates say it’s as high as three billion, which is just so far beyond stupid.”
“How many vacant homes are there now? Each expert gives a very different number, with the most extreme believing the current number of vacant homes are enough for 3 billion people,” said He Keng, 81, a former deputy head of the statistics bureau.
“That estimate might be a bit much, but 1.4 billion people probably can’t fill them,” He said at a forum in the southern Chinese city Dongguan, according to a video released by the official media China News Service.
That’s people, not homes. Still, even if you cut it in half, to 750 million vacant condos, that’s a huge number. That’s the equivalent of 30 empty Shanghais.
Back to Zeihan:
“Evergrande going down means that their debts aren’t going to be serviced anymore, and the physical assets they have are going to be parceled up and foreign investors are going to be coming in seeing what bits that they can get.” Any foreigners investing in Chinese real estate need their heads examined.
“These things are things that the Chinese Communist Party would not normally allow to happen, so there’s a couple ways that this can go, none of them are good.”
“Option number one is we follow a western style bankruptcy and restitution program where this system is broken up and a lot of their assets are sold at pennies, maybe dimes, on a dollar.”
“You can count on private citizens being up in arms. I mean, the best estimate I’ve seen out of China is at 70% of total private savings is wrapped up in real estate, and most of these assets are worth no more than 10 cents on the dollar.”
“You have a fire sale of the single largest player which controls one sixth of the market, holy shit, things are going to get real very, very, very quickly.”
“Option number two is that the Chinese step in and abrogate the Hong Kong ruling. Now legally this cannot happen, but the Chinese Communist party is not really big on legal details when it comes to Hong Kong in particular.”
“Then Evergrande goes on some sort of state drip and everything with the system just kind of limps on, with the understanding now that Hong Kong has no legal authority over its own holdings, which will start an exodus of what few international firms are still there.”
“Regardless how this goes, don’t expect anything in the market to get better.”
“Evergrande may be the biggest player in this market, but it is by far not the only one who’s been doing stupid things like this, building condos that have no demand or running it like a Ponzi scheme. Every development company in the country basically operates this this way, and the second and third largest players in the industry are state-owned.”
“Even if all of a sudden this place were run by a bunch of Austrian economists, it’s too late.” Because of the one-child policy, there simply aren’t enough people of home-buying age.”
“I don’t want to say anything overly dramatic as ‘This is where it all starts to fall apart,’ because we’ve had a lot of things like that go down in the last 18 months. But this cuts to the core of what enables the average [Chinese] citizen to actually support the government, and there’s no way we move forward from this without a lot of side damage.”
The Chinese economy is already sucking. If the housing oversupply is really as bad as Zeihan makes out, China is in for an economic upheaval that makes 1929 look like a mild case of the hiccups.
Let me start out by explaining how cryptocurrency works: You exchange your money for digital strings of numbers based on math you don’t understand, for one of the following reasons:
A. You believe those digital strings of numbers will be worth more money at some point in the future.
B. You want to buy drugs online in a theoretically untraceable manner (said theoretical untraceability being a key property of the math you don’t understand).
C. You want to place your money beyond the reach of your national government.
There are exceptions to the above (say, you’re mining your own cryptocurrency, or you know enough math to understand exactly the mathematical properties of how blockchain-based cryptocurrency works), but I’m going to guess that one of the three above use cases apply to 95% people using cryptocurrency.
I’m somewhat sympathetic to C, and even understand how A might be tempting (hey, crypto has dropped so much I might buy a couple thousand worth of Dogecoin, just for the hell of it, as a pure speculation play), but cryptocurrencies as a whole are not a proven store of worth on par with, say, a bar of gold, a share Apple stock, or a
Is cryptocurrency money? Sort of.
Cryptocurrency offers something that sometimes acts like money, offers anonymity like money, and offers an alternative to government-backed fiat currencies. Instead of being backed by the full faith and credit of the federal government, cryptocurrency is backed by the full faith of millions of technologically savvy individuals who believe the math is sound.
The math may indeed be sound, but that didn’t save it from the loss of investor confidence of the Crypto Winter we’re now experiencing. And that winter is absolutely slamming the business models of people who sought to make crypto more like other forms of money.
Enter Sam Bankman-Fried and FTX, whose crypto empire just collapsed.
Amid all the jubilation and gloating by Joe Biden, Chuck Schumer and pals over the Democrats’ better-than-expected showing in the midterms comes a disturbing story that may explain something about how they won such a curious election.
Biden’s second-biggest donor, cryptocurrency billionaire wunderkind Sam Bankman-Fried, a k a SBF, saw his business file for bankruptcy days after the election, but not before pumping $40 million into the Democratic Party to spend on “get-out-the-vote” and other shadowy ballot-harvesting mechanics for the midterms.
The shambolic 30-year-old whiz kid, once said to have been worth $16 billion, had spent $10 million helping get Biden elected in 2020.
SBF’s mother, Stanford law professor Barbara Fried, also is co-founder of left-wing political action committee Mind The Gap, which has raised a reported $140 million to help Democrats win elections through the same “get-out-the-vote” grift.
Tree. Acorn. Distances.
A more unlikely billionaire you could not find — and of course his money was built on thin air. A math genius with poor social skills, SBF reportedly lived in a “polycule” — a polyamorous relationship with multiple people — in a luxury penthouse with about 10 co-workers in the tax haven of the Bahamas, where his collapsed crypto exchange FTX was headquartered.
Otherwise, he was sleeping on beanbags in his office, eating vegan fries and, according to his own Twitter feed, popping amphetamines and sleeping pills to regulate his chaotic sleeping habits.
Just the sort of person you want to entrust billions in currency to!
Now Reuters is reporting that between $1 billion and $2 billion of customer funds have vanished from FTX, conveniently after the Democrats safely spent his money.
At last report, SBF and his mysterious co-founder, Gary Wang, were being held “under supervision” by Bahamian authorities after reportedly planning to flee to Dubai, according to fintech publication Cointelegraph.
It is a stunning fall to earth. The financial media and big investors have feted the young billionaire as a saint who shunned earthly pleasures like Lamborghinis and Rolexes, but lived only to give away all his money and make the world a better place.
He was the most famous millennial adherent of a cult known as “Effective Altruism,” which originated at Oxford University, found fertile ground in Silicon Valley — and now has gone down in flames along with him.
“Indulgences! Buy your Social Justice Indulgences here!”
EA is a disguised form of socialism, because all the “good” that is done just happens to match up perfectly with the left’s obsessions, whether climate change, social justice, equity, banning meat or his favorite, “pandemic preparedness.”
In a Nas Daily online video, an awkward Bankman-Fried was featured this year as a role model of altruism for young people: “Sam is not a traditional billionaire because he believes in the concept of ‘earn to give’ … Next decade he will probably give away more than $10 million … He wants to get rich in order to impact the world and change it.”
Some detail snipped.
The sinister neo-socialists at the World Economic Forum (WEF) loved SBF so much, they made FTX a “corporate partner” — but that page on the WEF website has vanished in the last 48 hours, leaving an error message.
Venture capital firm Sequoia was a big backer, investing over $200 million in SBF, a lot of which he then invested back in Sequoia, whose chairman and managing partner Michael Moritz is a big donor to the Dems as well as to anti-Trump hate group the Lincoln Project, and reportedly is a neighbor of Nancy Pelosi in San Francisco.
Russian forces have retreated from a Ukrainian airfield that was key to their original plan of overthrowing Volodymyr Zelensky’s government.
Hostomel airport, just oustide Kyiv, was the scene of some of the fiercest fighting of the Ukraine war, as Vladimir Putin, the Russian president, sought to establish an air bridge to the capital.
Control of the airport, 20km from Kyiv, changed hands several times, as Ukrainians at first defended fiercely and then attacked the Russian occupiers.
Five weeks on, the Russians have moved out having failed in their mission, according to a senior US defence official, as it abandons plans to take the capital and shift forces to the east.
This is a huge win for Ukraine, but it also means that surviving Russian forces can shift over to east Ukraine where the war is still hot.
Also: “Ukraine forces pulled off a rare attack on Russian soil Friday when two military helicopters destroyed a fuel depot in the city of Belgorod, situated roughly 40 miles north of the border with Ukraine.”
A key inflation metric monitored by the Federal Reserve soared 6.4 percent in February compared to a a [sic] year ago, reaching a new 40-year high.
The latest price surge, which affected the price of fuel, groceries and other consumer essentials, represents the largest year-over-year increase since January 1982, according to data released by the Commerce Department on Thursday.
Not taking into account food and energy fluctuations, which tend to be more erratic and can overemphasize inflation, the personal consumption expenditures price index, the preferred inflation gauge of the Federal Reserve, jumped 5.4 percent in February from a year prior. Including gas and groceries, PCE surged 6.4 percent.
It’s gonna get worse…
The Biden Administration is evidently all-in on tranny madness and grooming your children:
The Biden Administration has now determined that "gender affirming care" – including puberty blockers, hormones and surgeries – is a right of trans youth and "appropriate" and "necessary" for their health.
The Biden Justice Department will come after states that disagree.
Speaking of DeSantis, he has some pretty sweet talent lined up for this:
Johnny & Ronnie Van Zant, brother of original Lynyrd Skynyrd lead singer Ronnie Van Zant, made DeSantis’s new campaign video, “Sweet Florida,” replete with shots at the press, a dig at Fauci and loads of beach and flag-waving b-roll pic.twitter.com/Wd3F7u466Q
Through brand names like “comprehensive sex education” and one of its parent programs, “Social-Emotional Learning (SEL),” our government schools have been turned into Groomer Schools, and parents are beginning to notice. What many will not understand, however, is that this isn’t just a fluke of our weird and increasingly degenerate times. It is, in fact, a long-purposed Marxist project reaching back into the early 20th century. In this episode of the New Discourses Podcast, join James Lindsay as he explains the long history of the sexual grooming that has come into our schools through Critical Gender Theory and Queer Theory as they have crept into educational programs.
There’s an hour long video there I haven’t watched all of yet…
Speaking of groomers:
An Oregon elementary school teacher has been arrested near Seattle for two charges of attempted child rape & more. Andrew Bert Hammond, a fourth-grade teacher at Newby Elementary School, allegedly proposed to meet at a hotel & had handcuffs & duct tape. https://t.co/o2aJnzmZpX
Just how bad is the graft, waste and fraud in that $1.5 trillion porkulus bill? This bad. Look over that vast list of special subsidies and ask yourself “How many of these programs are designed to channel taxpayer money into the pockets of Democratic activists.” The answer seems to be “Most of them.”
“8 Joe Biden Scandals Inside Hunter Biden’s MacBook That Corporate Media Just Admitted Is Legit.” China, Ukraine, Russia, etc.
White House Press Secretary Jen Psaki is leaving for MSNBC. So many angles: A.) Rats, sinking ship. B.) That revolving door between Democratic staffers and the MSM continues apace. C.) I hear she has an offer to star in Chairman of the Board 2.
Just when you thought it was safe to go back in the supply chain: “22,000 Union Workers At 29 West Coast Ports May Strike…West Coast union dockworkers may strike if they don’t come to an agreement to replace their existing contract with marine terminals. The contract is set to expire at the end of June.” Labor strikes are yet another part of the classic winter of discontent formula the Biden Administration is using to bring back the worst of the 1970s.
Philadelphia district attorney Larry Krasner has presided over a surge in violent crime, and his new policy promises more of it. Krasner recently announced plans to de-prosecute crimes for offenders aged 18 to 25, ignoring how this age group tends to contain the most violent of criminal defendants.
Krasner’s office has established a new unit that will move some 18-to-25-year-old defendants into “rehabilitative programming” instead of seeking criminal punishments. As Krasner’s data dashboard demonstrates, “rehabilitative programming” is just a euphemism for dismissing charges. Krasner promises that the program will be limited to nonviolent offenses, including drug trafficking and other offenses. (The Philadelphia Inquirer reports that gun crimes will not be included, but Krasner has previously stated that prosecutions for illegal gun possession are “not only ineffective but unjust and racially discriminatory.” The link in the district attorney’s office data dashboard about Philadelphia’s Gun Violence Task Force takes the reader to a page that states “Article Not Found.”)
This new program reflects Krasner’s determination not to think like a prosecutor, but instead to think like the criminal defense lawyer he was. The program was developed by Sangeeta Prasad, a fellow with the district attorney’s office who previously served as a public defender in New York, New Mexico, and Philadelphia. Before assuming her current post, she had no prior experience as a prosecutor, just like Krasner. The chief public defender for Philadelphia has called the new unit “an incredible initiative,” but Philadelphia courts were not invited to the press conference announcing the plan and stated that they were not aware of the experiment.
The new initiative comes at an awkward time. In 2021, Philadelphia experienced the highest number of homicides in its history, and the violence is continuing in 2022. Indeed, Philadelphia homicides have risen every year that Krasner has been in office, as carjackings, shootings, and drug overdoses soar. What makes the policy more bizarre is that it runs counter to decades of criminological research. One of the iron laws of criminal conduct is the so-called age-crime curve, which demonstrates that the majority of serious crimes are committed by defendants between the ages of 15 and 25. This finding obtains around the world and has been replicated time and again.
Speaking of repeat offenders, Millen, Georgia police Officer Larry “Ben” Thompson quit after being caught on tape having public sex while on-duty. Fair enough, but his lengthy record of misdeeds makes you wonder why he wasn’t fired long ago, since he managed to shoot another officer in the arm (“negligent discharge”) and killed a guy in a traffic accident in route to a call. (Hat tip: Dwight.)
Nevada/Utah Ponzi scheme leads to FBI shootout. “The alleged $300 million scheme, run by a lawyer named Matthew Beasley, came to a head when FBI agents went to his home earlier this month and Beasley drew a gun on himself, before pointing it at agents, prompting them to shoot him.”
“[Fort Worth Superintendent] Kent Scribner will leave the district this August instead of in 2024, when his contract ends. In response to recent outcry from parents regarding Superintendent Kent Scribner’s support of CRT-based policies, Fort Worth ISD’s school board voted 7-0 to move up Scribner’s last day as superintendent to August 31, 2022.”
Ouch! Texas “Taxpayers’ Property Appraisals Rising 20% to 50% as Supply Chain Disruptions Meet Population Growth.” Austin-Round Rock is slated for the biggest increase, some 35.4%.
Don’t look now, but there’s another big Zero Day Internet infrastructure exploit out in the wild. “Spring4Shell is a remote code execution vulnerability in Spring Framework that can be exploited for remote code execution without authentication.” Spring is a Java framework that’s almost 20 years old, so the issue could potential be lurking in a lot of places…
Speaking of false accusations of racism, Gibson’s Bakery win over Oberlin in court yet again. “A three-judge panel on the Ninth District Court of Appeals issued a unanimous decision to uphold a 2019 ruling by Lorain County Judge John Miraldi, who initially awarded the bakery more than $40 million in punitive and compensatory damages, Cleveland.com reported. However, the sum was later reduced to $25 million, though the bakery was awarded more than $6 million for lawyers’ fees.”
We were driving on the PA Turnpike when a warning came across about sudden snow squalls and possible dangerous highway conditions. We got snow but nothing like THIS! Prayers for all involved. 🙏🏻 pic.twitter.com/IrNX6inRQi
