   | |||
China Pockets Hundreds of Billions of Dollars! Were The Dollars Used to Buy Gold and Needed Resources?Richard Benson Isn’t Evergrande Grand? Looks like the big real estate heist is in progress in China, and US and other foreign investors for now totally clueless as to the extent and magnitude of their almost total loss. To recap what should be obvious, Chinese property companies ......all to the core under the thumb of Zi Jinping .....borrowed thousands of billions in money– more than can be counted or accounted for, to build houses without end that are used by Chinese citizens as both: 1) places to live, and 2) places to Stash their Cash. Overbuilding was off the charts. Deposits taken from new buyers have been spent. Hello Ponzi Finance. (Bernie Madoff has nothing on this one.) Zi Jinping will set a record and go down as ‘The Man’ who got even for the Boston Yankees and British selling Opium to the Chinese for Silver and sucking the Silver out of China for the Trade with India and the Rest of the World. Sales of completed homes in China will just add to the glut of useless and unneeded assets. Many of the assets are in a very real sdicense not assets but liabilities, as they need to be cared for with no one using them. Revenues will only pay back a fraction of the massive financial claims called “debt”. A dollar borrowed will be a dollar not repaid. A dollar invested will be a dollar lost. Money borrowed that cannot be repaid, will be ‘written down’. Nice language around the capital market and orderly restructuring will mask the raw theft. That is what the Xi government is ‘hinting at’. Restructuring is such a nice word and Wall Street friendly! Who loses first? Why the investors that bought dollar debt and any other foreign currency bonds. Foreigners like to be especial and go first! Well, here you go! Dollar debt will be written down first, and if history of other situations holds to form, the dollar bonds will have a forced exchange into bonds in Renminbi. Next, the Renminbi credits will likely be blocked so they cannot be swapped for dollars or gold, but only used for Chinese factory exports. Gotcha Gringo! Caught you napping for a Financial Pearl Harbor that was just starting to brew on December 7th 2021 was the 80th anniversary!
There are no coincidences here, but a real message to the USA. China is likely warning the USA on Taiwan! Xi is saying Back Off or next we sell out all your Treasuries and swap to gold. So, when will the financial press wake up that there will be hundreds of billions of Write-offs of Dollar assets? Which investors, hedge funds and financial instructions will get hosed? Which will fail and who are their counter parties forced to the wall? If the Chinese quietly swapped the borrowed dollars into gold, you have the biggest dollar to gold heist pulled off right under little Janet Yellen’s nose! Now, what investment do you want to own when you can see a financial storm is looming dead ahead.? Crap dollar bonds, or real gold quietly picked up and tucked away for a rainy day. I feel lucky to have precious metals under my physical control. What is in your vault? BitCon, NTFs, endless ETFs in Meme stocks that have never made money and never will, or the real McCoy? Honest American Gold Eagles! ### Richard Benson Richard Benson is a widely published author on securitization and specialty finance, and a sought-after speaker at financing conferences on raising equity for mid-market finance companies. Mr. Benson is also the author of "Benson's Economic and Market Trends", a newsletter highlighting the economy and world events that greatly influence our financial future. Prior to founding the Specialty Finance Group in 1989, Mr. Benson acted as a trading desk economist for Chase Manhattan Bank and started in the securitization business in 1983 at Bear Stearns. He helped build the early securitization business at Citibank and E.F. Hutton. Mr. Benson graduated from the University of Wisconsin in 1970 in the Honors Program in Math, and did his doctoral work in Economics at Harvard University. Mr. Benson is a member of the Harvard Club of New York. 321gold Ltd |
