There have been worrying signs about the world’s economy for some time.
Well, it looks like the worst-case scenario for the world economy has finally hit the news, and people need to be prepared for what could come next.
One of the largest companies in China is now teetering on the brink of collapse that could cause a worldwide economic crisis.
It has gone wrong before; will it happen again?
All it takes is one event in the international state, and the world’s economy will go into a complete spiral to the bottom.
This is especially true for the economy when it is already crippled with a recession.
Just look back at the stock market crash of 1929.
The world economy was already struggling.
But once the big investors in the economy lost everything in the stock market crash, they stopped investing in the economy, stocked up on as much cash as possible, and just watched the system burn.
Some speculate that such an event could happen in the United States and around the world over the next couple of years.
The media might not want to admit it, but we already are in a recession.
Just ask the average American family, and they will tell you just how bad it has gotten between inflation and the lack of opportunities to advance in their careers.
You will be hard-pressed to find anyone who will actually tell you that things are going great in our economy.
Even Democrats are willing to admit that Biden’s economy is an equality race to the bottom.
But then people are asking, what event is going to trigger the House of Cards to collapse in the economy?
Well, it looks like we may just have had the event that could bust the world economy.
China’s Debt Giant Collapses
China Evergrande Group is a real estate company out of China and is one of the largest companies, not only in China but also throughout the world.
For years, they have dominated the real estate market in China, building up the communist nation to meet demand for housing and commercial development.
But recently, Evergrande has mustered a whopping debt of 333 billion dollars.
To put that into perspective, according to Business Insider, Evergrande’s 333-billion-dollar debt is more than the combined national debt of Vietnam, Philippines, Laos, and Cambodia.
In fact, it is the largest privately held debt collection in the world, with seventeen billion dollars in debt being owed directly to American companies.
Well, this Chinese giant in China is done for.
A judge in China has ordered for all of Evergrande to be liquidated.
That means that nearly all of the 333 billion dollars in debt will go unpaid to foreign investors.
China’s largest developer headed into liquidation with ($333 billion in debt)… Evergrande’s $17 billion in USD bonds is trading below a penny. Equity was halted at 16c. Total system wipeout as its CEO is also under police control. China’s so-called ‘miracle’ was just a mirage.#China pic.twitter.com/nqtJaipqjS
— 🇺🇸 Kyle Bass 🇹🇼 (@Jkylebass) January 29, 2024
And that doesn’t even begin to measure the impact that shutting down China’s largest real estate company will have on the communist economy.
All this while the United States sits on a debt bubble with our nation sitting on a debt to gross domestic product ratio being at 123 percent.
If this gets bad, it will get nasty really quickly.