New Found Gold Corp V.NFG

The Big Picture - China 1

[DanKWarren]

Two videos that show the Incredible state of Chinese Real Estate. It appears that much of the Chinese economy has been built upon a Real Estate Ponzi Scheme, creating astronomical Real Estate prices, and construction quality so shoddy that the buildings start to fall apart immediately.  And, even more astounding, a huge percentage of these newly constructed buildings are unoccupied, including ‘ghost cities’, newly developed cities with virtually no one living there.
 
Jim Grant  -  an interview with one of Wall Street’s legends. He’s talking about the US Economy, gold, of which he is a big investor in and thinks is a key holding, now, and Evergrande and China.
 
https://thesoundingline.com/jim-grant-evergrande-is-a-systemic-risk-but-inflation-is-biggest-risk/
 
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Another Video is from these two young expats who lived in China for a long time, and created videos from there. Both are married to Chinese women, and have a long history of living in China. The guy with the short hair is from South Africa. He no longer lives in China, but, he is now ‘hunted’ by the Chicoms (they try to find out where he lives), because his videos embarrass the Chicoms. This particular video shows the appalling shoddy quality of Chinese modern construction.
 
https://www.youtube.com/watch?v=lKbLB_T-IjY
 
What does this have to do with NFG?
I think it is becoming obvious that China’s economy, a centrally controlled communist system which allowed private enterprise, but corralled it into directions the Chinese Communist Party demanded, had massive misdirection of resources, compared to real economies where the market determines the use of resources.
 
With China’s MASSIVE real estate bubble now coming undone, how does this effect China, and the world wide economy?
 
It looks as though the Chinese economy is unraveling, as President Xi creates his own ‘Little Red Book’ that chairman Mao imposed upon China, with XI, trying to recreate Chinese society.  Xi  starts to TRY to deflate the Real estate Mega Bubble WITHOUT deflating the Chinese economy (probably an impossible task, given the huge percentage of the economy that real estate comprises of the Chinese economy, coupled with the unbelievable valuations of Real Estate, shoddy quality of this real estate, and  the vast amounts of unoccupied properties).
 
I don’t know the answer, but the unraveling of the Chinese economy is going to be a big part of the total puzzle of what the years ahead will involve. The real estate debacle in China is just part of their problems. And, they are dead set on taking over Taiwan, and, thus, you can’t rule out more tensions from China arising from the Communist Chinese threats toward Taiwan, including the possibility of an actual invasion of Taiwan. This may be the distraction the CCP (Communist Chinese Party) may need to distract from a disastrous economy, and demolished real estate sector, which is many times the percentage of the Chinese economy compared to Western nations, and many times the valuations which exist in the Western nations, along with terrble quality of these properties, such that many will likely need to be bull dozed.

[likeike]

You got it Dan....ever since Hong Kong was given back they have been trying to tame  capitalism the uncontrollable dragon. They should have read books by realestate tycoons an realize most of them went broke 3 or 4 times before they made it and still do not know how they finally made it. My favorite of all time was looking at the Hang Seng or the stockmarket in Hong Kong Look at those

[likeike]

They did not get just bitten in the ars on this one... they got their whole ars eaten off. IKE

[DanKWarren]

Yep, I don't see how they get out of the REAL Estate Collapse. It seems that a HUGE % of the Chinese economy revolves around real estate, the unbelievable speculation that ordinary Chinese have engaged in, and prices that are many, many times which we see in N. America. And, now, real estate sales are down 30+%, and I read one post from China that said everybody thinks RE prices are going down

[hope21]

The real estate problem in China has been around for awhile. I recall one of consultant who traveled often to China mentioned to me that he did not understand how their were so many office buildings in China that were mostly empty. Now the realty is kicking in.

[Global1966]

China kicked the real estate can down the road as far as they could but now the jig is up. Unoccupied buildings were built into their marvellous GDP growth statistics for decades (fake statistics). The same will happen to the Central Banks and their economies that have let the printing presses run overtime. Stagflation is with us

[Westcoastnewbie]

Well nothing like a good old war to straighten things out. I worry about them attacking Taiwan. I know it seems crazy but CCP seems intent on reunification of that Island.  Just like Hong Cong. 

[Westcoastnewbie]

Sorry. Hong Kong. Shakey old fingers I guess. 

[megacopper]

    Its just not office buildings. There are entire cites built over there with not one single person living in them. 100% empty cities. Most people in the world have no idea what is really going on over there but I think everyone is about to find out and it won't be pretty. I also think this pandemic will be the trigger for much larger issues with the global economy

[hope21]

I agree with you megacopper. Once the folks behind this gold price manipulation are trapped. We all know who they are. Gold will shine again.The truth is Gold exposes the reality and it is a real asset that has true value. Wise folks know that. it is only a matter of time. This board is a great board filled with knowledgeable folks.

[diabase1]

And the FED said inflation is transitory. Oh ya??? For how long? 2 weeks, 2 months? 2 years? And so gold is transitory too, when the corruption stops.

[megacopper]

The Chinese are learning western ways. What better way to get out of a financial mess than starting a war and pump the system with liquidity and keep investors distracted from the real issues. The media will be totally focused on the war and won't even mention how the cost of everything just keeps going up and up. It has worked for the Americans for decades and decades. Rinse and repeat

[Global1966]

It's not all roses in China. If the coming property disaster can't  be managed satisfactorily causing resulting in a wider economic issue and if the current energy shortage means millions freeze over the coming winter, the anti Xi forces in the CCP will rise up. A few of the senior CCP figures have been rounded up on trumped up charges in recent weeks