It ain't gonna fail. The Chinese want to replace the USA, become #1, exactly the same way USA became #1. And what I love about Marxists is they get their facts straight and proceed in a straightforward manner. No hype, no halo on exploitation, no "it's for the children" cant, just "get 'er done."
This reporter hilariously wonders if the efforts of the five Chinese state-owned banks is coordinated: all five have proposed subsidiaries to offload bad debt and funded with ten billion yuan-
ABC Asset will specialize in the debt-to-equity swap business, including acquisition of debt assets, converting debt into equity, holding, managing and disposing of equity in debt-to-equity swap enterprises and other financial business, according to the announcement.Just like GoldmanSachs and Lehman Bros did (does?) secretly, China will be forthright about it. The ten billion yuan is a ludicrous amount to deal with China's credit problem, it is probably just the start-up costs of the office building necessary to conduct the wealth transfers.
The investment, which will be funded by ABC's own capital, "meets the bank's needs to adapt to changes in the internal and external economic and financial environment".
"It will enable the bank to enhance its competitiveness and gradually transform its business model from over-reliance on the deposit and loan business and to carry out integrated operations," the bank said.
"We commercial banks regard this as an opportunity to transform our business," he added.
After the subsidiaries are established, they will raise funds for debt-to-equity swaps from qualified institutional and individual investors.
The sources of money will include insurance funds, pension funds and industrial investment funds that can make long-term investments.
"By setting up a subsidiary, we'll have a professional team specializing in debt-to-equity swaps. Moreover, it will be easier for the subsidiary, as a legal entity, to isolate risks from the bank," Zhang said.
So there it is. The crash is coming, the Chinese will simply raid "insurance funds, pension funds and industrial investment funds" and oblige them to "make long-term investments."
That is exactly what the USofA plans, it is called "opt-in" where they seize your "assets" (ex nihilo credit is nothing but tally of nothing) and turn it into a long term investment, "for the children."
Now you know. Forget about guns and ammo, stocked prepper foods, and gold coins. Start an authentic business, that does not require ex nihilo credit.
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