ER Editor: We smell many things coming to a head, including: Assange’s release (thus the release of data on the deep state?); the UK and French post-election situations (waking up the normies to the perniciousness of the fake, globalist left); public exposure of Biden (ditto); Orban mobilizing Putin and then Trump around peace efforts; Trump’s iconic near miss with a shooter (‘near death experience’). The financial situation has to factor into this. Somewhere, we believe, the financial situation has already crashed to the detriment of the cabal and been replaced; it’s now that we’re hearing about it. This is our belief only, we hasten to add.
Our thanks to observant New Zealand blogger Robin Westenra for drawing attention to the Chinese situation below. Here’s a relevant tweet mentioning both the US and China in the context of July 13, yesterday. The text is in full below —
GLOBAL FINANCIAL CRISIS:
· Sat. 13 July 2024: Two of the largest banks in the US, JP Morgan Chase and Wells Fargo, are declaring a staggering $3.5 billion in debts that customers can’t pay back.
· Sat. 13 July 2024: Banks Shutting Down. Banks closed 539 local branches across…
GLOBAL FINANCIAL CRISIS: · Sat. 13 July 2024: Two of the largest banks in the US, JP Morgan Chase and Wells Fargo, are declaring a staggering $3.5 billion in debts that customers can’t pay back.
· Sat. 13 July 2024: Banks Shutting Down. Banks closed 539 local branches across the country in the first half of the year – leaving more and more Americans without access to basic financial services. If this rate continues for the rest of 2024, it will mean more than 1,000 branches wiped from malls, and town and city centers. Bank of America closed the most branches, a total of 90 in just six months. Wells Fargo shut down 62 banks. Chase shut down 53 banks. TD Bank shut down 52 banks. The 17th Letter (JFK Jr.) on Telegram ~ The 17th Letter ~
· Sat. 13 July 2024: 40 Banks Shut Down in Sudden ‘Vanishing Act’ – Absorbed Into Larger Lenders As Economy Teeters in China: Report. Banks are collapsing at an unprecedented rate in China due to a major downturn in the country’s property market, poor risk controls and other issues. In the week ending on June 24th, 40 smaller banks were sucked up by larger institutions, a vanishing act incomparable even to the savings and loan crisis of the 1980’s and 90’s, reports The Economist. Thirty-six of the 40 failed institutions were all absorbed into one giant lender: Liaoning Rural Commercial Bank, which was set up by regulators in September to manage bad banks. https://dailyhodl.com/2024/07/12/40-banks-abruptly-shut… -down-in-vanishing-act-absorbed-into-larger-lenders -as-economy-teeters-in-china-report/
· Sat. 13 July 2024: Emergency Alert: The Rapid Collapse of America’s Bank Branches: Wells Fargo Branch Shutdown, Chase Bank Closures and TD Bank Branch Reductions – Bank closures 2024 – American Media Group (http://amg-news.com)
· Sat. 13 July 2024: BOOM! Putin’s Chilling Warning To Rothschild: “Our Future Generations Will be Born Without Rothschild Chains Around Their Wrists and Ankles.” – American Media Group (http://amg-news.com)
SHOCK REPORT: 40 Chinese Banks VANISH IN ONE WEEK, marking severe consequences for the global economy.
DEVELOPING..
In just one week, 40 banks disappeared in China.
The collapse of Jiangxi Bank severely deepens the financial sectors problems..
After reports that 40 Chinese banks vanished after being absorbed into bigger ones, angry people in China have destroyed an agricultural bank in the town of Bain.
The Rothschild-backed Economist noted that approximately 3,800 banking institutions are threatened in China.
Banks closed 539 local branches across the country in the first half of the year – leaving more and more Americans without access to basic financial services.
Over the past week, a Banking catastrophe has unfolded inside China, with FORTY (40) Banks Failing and having to be absorbed by other banks. Yesterday, Jiangxi Bank – a GIANT – went under causing Depositors to storm the bank demanding their money.
China’s banking sector is facing a full-scale crisis. In just one week, 40 banks disappeared, absorbed into larger institutions.
Yesterday, Jiangxi Bank of China went under, further escalating the crisis.
China’s smaller banks are struggling with bad loans and exposure to the ongoing property crisis.
Scope of the Problem
Some 3,800 such troubled institutions exist. They have 55 trillion yuan ($7.5 trillion) in assets—13% of the total banking system—and have long been mismanaged, accruing vast amounts of bad loans. Many have lent to real estate developers and local governments, gaining exposure to China’s property crisis. In recent years, some have revealed that 40% of their books are made up of non-performing loans.
Bank of Jiujiang, a mid-tier lender, recently revealed that its profits might fall by 30% due to poorly performing loans. This rare disclosure highlights the severity of the situation. The authorities have been pushing for more transparency, but the true extent of the bad debt problem is still emerging. The four state AMCs created to manage bad debts are now struggling themselves, with one needing a $6.6 billion bailout in 2021.
Disappearing Banks!
China’s main way of dealing with small, feeble banks: making them disappear. Of the 40 institutions that vanished recently, 36 were in the Liaoning province and absorbed into a new lender, called Liaoning Rural Commercial Bank, which was created as a receptacle for bad banks. Since it was set up last September, five other institutions have been established to do similar work, with more expected.
The Root Cause: Property Sector Recession
The root cause? China’s property sector is in a deep recession. Overextended real-estate developers and local governments have defaulted on loans, creating a cascade of financial instability. Property prices have plummeted, and construction projects have stalled, further straining the financial system.
Hidden Bad Debts and Regulatory Crackdown
Adding to the complexity, banks have been using asset-management companies (AMCs) to offload toxic loans, creating a facade of stability. These AMCs buy bad loans but avoid taking on the credit risks, leading to a buildup of hidden bad debts. The National Administration of Financial Regulation (NAFR), a new banking regulator, has been cracking down on these practices, issuing fines and increasing oversight.
What is Coming?
This regulatory vanishing act will probably pick up pace. S&P Global, a rating agency, reckons it will take a decade to complete the project. While fewer bigger banks are easier to regulate, combining dozens of bad banks only creates bigger, badder banks.
The fact remains that the Chinese economy is in an extended and pretend state. Years of credit-fueled growth has finally run its course, and the result will be. lower growth for China and a negative impact on the global economy. Slower growth of the Chinese economy will, in turn, exacerbate their banking problems too.
This will very likely end in massive liquidity injections, stimulation of the economy, and investors flocking to hard assets.
ANALYSIS
This is not only happening in China; It is all over the world. Crises will happen one after another.
This is why more and more individuals and central banks are trying to hold more hard assets. But, those who hoard gold will also have a hard time as Bitcoin is monetizing gold.
My question is: will China be able to contain this by themselves? If so, then nothing to see here. If not, this will spread, worldwide, fast.
The crisis that started in the real estate sector in China spread to the banks as well. 40 banks in the country declared bankruptcy. When the people flocked to withdraw their money, the security forces protected the banks with tanks.
In China, the collapse in the real estate market is turning into an economic crisis, TRT haber reports.
Banks are also stuck when homebuyers refuse to pay their mortgages for unfinished apartments .
Increasing pressure on 40 banks declared bankruptcy. Depositors, whose deposits have been frozen since April 18, flocked to banks to withdraw their money.
Tanks deployed in front of banks
A clash broke out between security guards and protesters in front of the branch of the People’s Bank of China in the city of Zengzhou.
While the police detained many people, tanks were deployed in front of the bank after the brawl.
Chinese authorities took a new step to quell growing anger. It was announced that the depositors whose deposits were frozen in two cities would be reimbursed.
US DECLINE: Massive Bank Crashes, Economic Downturn Accelerates | Prof. Richard Wolff (Part 1)
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“Conservatives table bill to prevent Bank of Canada from replacing hard cash with a digital currency”
https://www.youtube.com/watch?v=6-HtpE2kigE&t=7s