ECONOMIC CRISIS: The Truth About China's Real Estate SCAM

Chris unpacks China’s worsening financial and property crisis, where cash-strapped local governments are now paying bills with unfinished apartments. From years of reckless real estate debt to intellectual property theft enabled by past U.S. policies, this barter system signals a steep economic decline. Is Beijing’s development path crumbling? www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact that we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
China's financial world's fiscal woes are getting worse instead of better.
How is this? China's went on for size. Their local
governments are in such dire straits that they're paying their
bills with unfinished and unbought apartments. That We've spent some

(00:38):
time talking on China's property crisis, financial crisis that has
been some time in the making. This again, this is new, okay,
this is you know, kind of barter that and it's
almost primitive to some degree. There's an interesting column about

(01:02):
this and the Epic Times written by Milton As Roddy said,
this speaks to how far China has fallen and how
much Beijing needs to do to get back on an
acceptable development path again. Years of excessive promotion for residential
real estate development again, the easy financing terms again. China

(01:28):
watched us do this crap and watched it blew up
in our face again. Hu Jintao is in charge at
that point in time, he wanted to do the same thing.
It's again, it's like the people that again it's like
the people believe in communism. Ah no, it's never worked before,
but we're the people that can actually make it work

(01:49):
right right, right Because of all the support that the
Beijing put into residential real estate, developer could offer attractive
deals to home buyers, driving up purchases, taking advantage of
the favorable situation by using debt to finance as much

(02:10):
development as possible. Now, local governments they were the ones
that were selling the landoff. That's where they generated their
income from. They borrowed against this. At the height of
the real estate development in China, it was twenty five
percent of the entire economy. Most developed economies rarely dedicate

(02:39):
more than five percent of their gross semestic product to
real estate development. But again, no, no, no, no, no, no, no, no,
you know, because they're smart over there, the Xijinping is
a genius. Because that's as what we're told by the
mainstream press. I mean, they're just geniuses over there. We
can't handle how smart they are over there, right right,

(03:01):
They saw what was happening, then all of a sudden
they pulled the rug out, and you know, we've seen
the pictures, We've covered it here on the program. Again,
I look at this as an opportunity. Quite frankly, you
want to again, we want to do business with China,

(03:21):
We want to do business with the entire world. You
can change the nature of this relationship. But obviously they're
going to have to meet us halfway. Actually probably a
little bit even further than halfway. We all know about
the various different intellectual property theft that has taken place
over the past several decades, which again we've allowed to happen. Yeah,

(03:42):
Trump is right when he talks about that to some
degree about them being smart. We basically said sure, sure, yeah, yeah,
we'll show you what the secret sauce is. It's like
Coca Cola given up their formula or KFC giving up
what's in the chicken whatever. Maybe we did that. We

(04:03):
did that. I I remember, I remember during the Clinton administration.
I remember them giving all this technology from the raw
space over to China and speaking with people, you know
when when when even North Korea is testing various different missiles,

(04:23):
it was all a technology that we gave them. We
allowed it to happen. Remember remember al Gore was also
getting money from Buddhist temples in China. Remember that whole thing,
that whole controversy as well. Yeah. Again, sometimes people will
sell their country out for a buck, but neither here

(04:44):
nor there at this point in time there in they're
in dire straits. They're in dire straits. I know. Sometimes
we might be amazed, Wow, look at what Deep Sake did,
Deep Seek did this new AI technology? Again, everyone's all
of a sudden kind of skeptical about where, you know,
did they developed that or was it all stolen? The

(05:06):
chips go through Singapore to get to China, which allowed
this to happen. They basically just copying you know, Open
AI and and GROX homework. Starting to look that way again,
I don't. I don't think that there's this necessity which
has been perpetually pushed on us the major networks that

(05:29):
we're going to have to go to war with China.
Uh quite frankly, I don't think that they're interested either.
Watchdog on Wall Street dot com