– Now A US Govt Official Is Telling Us That Supply Chain Nightmares Could Potentially Last For “Years”
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The Japanese giant has shown off the amazing ability of its next-generation vehicle that could change the cars we drive for good.
This is why you might never have to plug in your electric car.
Toyota has just set a Guinness World Record for the longest distance travelled by a hydrogen-powered car without refuelling.
The Toyota Mirai was driven 1360km on a roundtrip tour of Southern California earlier this year, which far surpasses even the most long-legged battery-powered electric car.
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What will the value of gold be when the dollar goes to ZERO?
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With that preamble in mind, we bring readers’ attention to a little noticed report in Shanghai Securities News, citing China Real Estate Information Corp. research (link), which revealed that more than 90% of China’s top 100 property developers’ sales declined in September by an average of 36% from the same period last year. According to the report:
- Sept. sales totaled 759.6b yuan ($118BN), down 36.2% from September 2020 and 17.7% lower from the same period in 2019, deepening a downward spiral that started in July
- Among companies, 60% of developers saw sales decrease by more than 30% y/y in Sept.
- Beijing, Shenzhen and Guangzhou saw transaction volume of residential properties decline 30% y/y, while Shanghai fell 45%
We had to do a double take when we saw this because these are absolutely terrifying numbers and are, to put it bluntly, scarier than Goldman’s “worst case scenario“; what’s worse this sudden collapse in China’s property market is taking place before Evergrande has even defaulted, an event which would lead to a glacial freeze in the property market as potential buyers hold off expecting liquidation firesales from the property giant in hopes of getting bargains. The problem is that in addition to being the world’s largest asset, China’s property market is also the world’s largest ponzi scheme, and without constant inflow of new capital it would implode, especially when factoring in the 90 million vacant apartment which just sit inert and which would promptly be dumped by anxious owners, flooding the market with excess inventory and sending prices crashing.
It didn’t take long for the market to notice what is going on and otherwise healthy property developers, which are in far better financial health than Evergrande, promptly collapsed: China Jinmao Holdings plunged as much as 10%, China Overseas Grand Oceans Group tumbled -7.9%, Sunac -3.7%, Country Garden Holdings -3%, Agile Group -2.8%, and so on.
No ponzi scheme can continue if the participants lose faith in a favorable outcome, and at $62 trillion, China’s housing sector is the world’s biggest ponzi scheme.
Which is why other experts have said this isn’t a Lehman Brothers moment— it could be far worse, if one views China’s gargantuan real estate sector as rotten to the core.
Which it is.
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