September 26, 2022
By James Grundvig, American Media Periscope
Under the framework of globalism, everything links interconnected. If the 77th United Nations General Assembly got anything right last week, the elites sounded the alarm on their looming “interconnected crisis.” Everything is interconnected, and a crisis in 2022. The shortlist includes the “COVID-19 pandemic, the war in Ukraine, humanitarian challenges” and climate change.
Of course, the United Nations left out the financial crisis they created and inflated that past forty years, growing it so large that no one is sure how to handle the $300 trillion global debt load, with GDP running only one-third. The UN didn’t do it alone. It had help. The other pirates of the global operation included the central banks, the IMF, the World Bank, the World Economic Forum and other large-scale institutions.
What’s left? When and where will the global contagion burst the bubble and meltdown the financial markets? Take your pick. Will it be China, Europe, or the United States?
This time we are not talking about banks being too big to fail, like in 2008 Fixed Income Crash, but entire nations that will go under crushed by the weight of their debt.
Sounds promising, no?
A Coup in China?
The weekend began Friday night with the “astonishing rumor” that Chinese Communist Party (CCP) Chairman, Xi Jinping, fell under house arrest in a coup carried out by the People’s Liberation Army (PLA).
Epoch Times journalist Jennifer Zeng reported the rumor came from a source in India; many similar rumors in the past proved to be vaporous, not grounded in reality.
China expert Gordon Chang believed the coup speculation was “unfounded” but added something unusual happened in the Chinese Communist Party leadership.
Chang tweeted Saturday morning:
“The lack of news from #China over the last few hours suggests coup rumors are untrue, but whatever happened inside the #Chinese military during the last three days — evidently something unusual occurred—tells us there is turbulence inside the senior #CCP leadership.”
In response to Jennifer Zeng’s video, Gordon Chang also tweeted that a lot of unusual activity occurred in and around Beijing, from the cancellation of 59 percent of its commercial flights to the PLA military vehicles moving into the capital city.
The imprisonment of senior CCP officials gave us a clue , however, to what might have occurred last week.
Without word from the party or any physical evidence that a coup unfolded, the next event to watch will be the CCP holding its 20th National Congress. That begins on Sunday, October 16.
A Consolidation in Power
Cutting through the fog of rumors and speculation, Molly Gambhir, the “Gravitas” show news anchor for the Indian TV channel WION The World is One News, provided an in-depth analysis of what most likely transpired over the weekend.
From a CCP press release, it read:
“All delegates to 20th CPC National Congress elected under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the delegates were
elected in accordance with the Party Constitution, the CPC (Communist Party Congress)
Central Committee’s requirements, adopting methods required by the CPC Central Committee, the statement said.”
China Daily posted Chairman Xi Jinping’s warning to the United States: “A warlike state, however big it may be, will eventually perish.”
Bloomberg News reported, “Xi’s core status reaffirmed as party unveils congress invitees core of the party. It is firmly believed that under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core and through the concerted efforts of all the delegates, the 20th CPC National Congress will be a congress of unity, victory, and endeavor.”
Molly Gambhir added that Xi Jinping purged scores of Chinese police and state officials and their wives who were not aligned with Chairman Jinping or the Chinese Communist Party. “They received sentences that ranged from fourteen years to suspended death sentences, which means life in prison in China,” she reported.
Gambhir’s explanation for the unusual activity in and around Beijing alludes to what happened over the weekend—a communist purge and consolidation of power. Securing power before being “coronated” for a third term makes far more sense for what just happened. Not a silent coup. But a secret purge.
Yet, the Chinese Communist Party isn’t out of the geopolitical woods. There are a host of other unprecedented issues and challenges that Xi Jinping faces this autumn.
China’s Everything Bubble
The problems for China go far beyond a power struggle or purge in the CCP, the PLA, and whether Xi Jinping wins a historic third consecutive term.
The country of 1.4 billion people faces a steep decline in a cratering housing market. That unleashed a one-two punch combo on the Chinese economy. First the long-simmering China Evergrande Group’s crumbling real estate Ponzi scheme. Ensued by the CCP’s “Covid Zero” policy, with a new round of hard lockdowns, ignited a people’s revolt. Months later, the tailwind of the “mortgage boycott” continues unabated, creating a liquidity crisis of epic proportions across two dozen of China’s cities.
The Guardian reported in its article, “A Ponzi Scheme by any Other Name: The Bursting of China’s Property Bubble”:
“About 2 million off-plan homes remain unfinished across China, according to a rough estimate by S&P. That figure will grow if sales continue to fall and developers continue to run out of money to complete projects,” Martin Farrer wrote in The Guardian.
Now word emerged that the United States’ number one and three banks, JP Morgan-Chase and Citibank, warned the CCP that it would “withdraw funds” from the country if China invades Taiwan. Now a new rumor surfaced that Citibank plans to withdraw its business from China altogether.
Today, the receivers of the China Evergrande Group put its “Hong Kong trophy headquarters building on the market as the lenders run out of patience.”
Fire sale, anyone?
Once the world’s largest real estate holding company, with more than $2 trillion in assets,
the scope of an Evergrande implosion remains unknown. Since the global “crisis is interlinked,” the corruption remains hidden, and China’s two-book accounting system defines opacity, would such a cataclysmic event take down global hedge funds and big banks, too?
In short, how much exposure do the United States and the titan funds of Blackrock and Vanguard own in China and Evergrande specifically?
We should find out soon.
Food, Water, Drought Weighs on China
After Chairman Xi Jinping’s coronation at China’s 20th National Congress, coming in three weeks, he and the 90 million members of the Chinese Communist Party must contend with other paradigm-shifting issues beyond war and money.
They include, but are not limited to:
- The worst heatwave in China’s millennia-old history;
- Entire rivers are drying up in the megadrought;
- Looming food shortages and famine;
- Covid lockdowns with the citizenry not ceding ground.
Does this spell the end of the China dream? Will Xi Jinping and the CCP survive or collapse in the ruins of the West’s financial system? And will they attempt to use an invasion of Taiwan to cover up their crimes and broken system of governing?
If the World Economic Forum gets its way this fall and orchestrates the “Great Reset” global collapse, as planned, we will learn the answers to some or all critical questions.