Chinese developer Sinic defaults; Evergrande on the verge of bankruptcy -IMF says ‘risks are contained for now’
/By Stan Szymanski
S&P Global Ratings lowered the credit rating of Chinese real estate developer Sinic from ‘CC’ (otherwise known as ‘junk’) to ‘selective default’ after the company did not make the interest payment nor the repayment of principle on its 250 Million Dollar denominated bond that was due on October 18th.
According to The Straits Times: ‘A senior official with the International Monetary Fund (IMF) said risks to China's economy from an Evergrande meltdown are "contained" for now.
"People understand that the government has the tools to contain the risks going forward," IMF's China mission chief Helge Berger said on Bloomberg Television.’
What do the people understand? What kind of baloney is the IMF putting out to try to manipulate the indices to keep a stampede out of the markets from starting? Just a few days ago (10/13/21) The Epoch Times reported in ‘‘Broader Financial Stress May Emerge’: IMF Warning About Evergrande Crisis’: …’“While the authorities have the tools to step in if the situation were to escalate, there is a risk that broader financial stress may emerge, with implications for both the Chinese economy and financial sector as well as global capital markets at the extreme,” the IMF said in its Global Financial Stability Report published this month.’…
So in less than a week the International Monetary Fund is engaging in doublespeak.
A week ago it was ‘implications for both the Chinese economy and financial sector as well as global capital markets at the extreme’ and in the last 24 hours it is ‘"People understand that the government has the tools to contain the risks going forward,".
The systemic risks to equity, bond and real estate markets are now being understated by the Masters of The Universe because in reality, it is impossible to overstate them. No financial entity wants to preside over a financial catastrophe, but that situation is now looming on the horizon like the bright orange sun that rises in the East.
There is only a few days left before the 30 day grace period is up on the unpaid obligations of China’s 2nd largest Real Estate developer, Evergrande. If they don’t pay up, it’s bankruptcy.
Do you live in America? Do you notice that it is primarily the -dollar- denominated securities that are not being paid by China? No matter what side of the ‘jab’ debate you are on you would be remiss to recognize that the Chinese had a role in its development (’devil’ OP ment). There are thousands of Chinese containers just sitting off the shore at Los Angeles and Long Beach that are creating shortages in the USA. Do you think that all of this is a coincidence? Apparently, this is a coordinated operation against the United States to destroy its finance, its people and its commerce.
Preparing for the worst would, it seems, be prudent. Please consider food, water (and purification thereof), energy, shelter and security to be matters just as important as the numbers on your 401(k) statement that have you mesmerized, lobotomized and hypnotized into believing the hype (This is not financial advise; please consult your financial advisor).
Will you trust the IMF and your 401(k) statement or will you recall the wisdom and lessons that your parents or grandparents who survived the Great Depression shared with you?
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Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.