Continuous Bank Collapses cause Bank Runs in China

"China’s banking sector has been dogged by a sudden surge in liquidity concerns". Where have we heard that before? It's crazy to keep any significant amount of money in a bank. They pay virtually no interest anyway. First, it was Baoshang Bank , then it was Bank of Jinzhou, then, two months ago, China's Heng Feng Bank with 1.4 trillion yuan in assets, quietly failed and was just as quietly nationalized. This Month, a fourth prominent Chinese bank was on the verge of collapse under the weight of its bad loans, only this time the failure was far less quiet, as depositors of the rural lender swarmed the bank's retail outlets, demanding their money in an angry demonstration of what Beijing is terrified of the most: a bank run! Life tragedy mostly happened suddenly, overnight, with no warning. However, the bank run has plenty of warnings for those who can see and paying attention. Disasters are for those who refuse to see and living in limbo. We will pay for letting the government and central bank greed control our lives. Cartels will go free and enjoy the fruit of our labor, while more will be poorer and starve. They have our money converted to physical assets while we are left with federal reserve promissory notes. Liquidity problems in China, Liquidity problems in America. Only one thing to do. Buy gold bitchez. Stick to physical, not that ETF nonsense. If you don't hold it, you don't own it. The exit doors are narrow, and everyone thinks they will be able to get out. I have no sympathy for anyone who continues to hold their nest egg in the banks in the face of such obvious financial Armageddon forthcoming. The peasants are stupid, thinking their cash is in the bank. Welcome to The Atlantis Report. Small Bank Collapse Triggers Credit Crunch in China. A growing number of analysts believe the next financial crisis is likely to start from China and its indebted banking system. A recent incident substantiates these fears. Baoshang, a small lender based in the Inner Mongolia Autonomous Region, collapsed at the end of May, despite its numbers from a few weeks has given no indication that this was going to happen. According to its most recent report filed with financial authorities, the bank registered a $600 million profit in 2017. It also had approximately $90 billion in assets, while its bad loans were under 2%. But then Baoshang suddenly failed, and Chinese regulators seized the bank – the first act of this kind in the People’s Republic this century – quickly blaming its owner of misappropriation of funds. Observers note, however, that the significance of Baoshang’s collapse stems from the fact that it was caused by the country’s first default on interbank obligations. It has since become tough for smaller institutions to access the interbank lending market, on which they are heavily reliant. And while the collapse of an Inner Mongolian bank may not sound like a Lehman-size event, in China, quantity has a quality all of its own. Numerous small and medium-sized Chinese banks combined are, in fact as large as the big players. All of them are now facing difficulties when trying to convince larger financial institutions they are stable enough to receive new loans. This situation forced the People’s Bank of China to intervene and inject 600 billion yuan to sustain liquidity while introducing full guarantees for all retail deposits. Nevertheless, credit has already become harder to get and much more expensive for small banks in a time of worsening economic prospects amid an ongoing trade dispute with the U.S.. Under these circumstances, one thing is sure: trust in the global financial system, based on inflated continuously fiat currencies, will continue to diminish. And while new barriers are being raised to free economic interaction, often out of geopolitical considerations, the need for an independent vehicle for global money flows will continue to grow. Whether cryptocurrencies can fulfill that role remains an open question, the answer to which may arrive sooner than many think. According to McKinsey, in 2012, 54 percent of China’s urban households were considered “mass middle” class, meaning they earned between US$9,000 and US$16,000 per year. But by 2022, thanks to a growing number of higher-paying high-tech and service industry jobs, 54 percent will be classified as “upper middle” class – meaning they earn between US$16,000 and US$34,000 a year. In America, the middle class has been dying since our last manufacturing trade surplus in 1976. Now, we are more dependent on reserve currency and the illusion of wealth. Meanwhile, Chinese consumption (the number of stuff people buys) is expected to grow 9 percent a year through 2020, according to the Boston Consulting Group. Overall, the consumer economy is forecasted to grow by 55 percent, to US$6.5 trillion. That’s an increase of US$2.3 trillion – which is like adding a new consumer market 1.3 times larger than the current consumer markets of Germany or the U.K. And that’s assuming that China’s GDP will grow by 5.5 percent a year, which is lower than the projected growth of 6.5 to 7 percent a year. Still not sick of winning. Another factor that’s supporting China’s consumer spending growth is its low level of household debt. China’s household debt-to-GDP ratio of 40 percent is less than half the American household debt-to-GDP ratio, and is much lower than those of other developed countries. This means that Chinese consumers will spend less on servicing their debt – and that they’ll be able to take out more debt. In theory – although there is some cultural bias against excessive debt – this will support further growth in consumption. Think about it. This is allegedly the biggest boom in human history and their banks are all lined up to walk the plank. If their GDP growth ever drops below "6.5" %, the shit isn't going to hit the fan, it's going to hit the particle accelerator. But on a more positive note ; The Chinese still buy more gold than any other country, biggest savers in the world, they are keen to nationalize more banks. They are growing a middle class, get more of the middlemen out of building a healthy consumer base. This is helping recession-proof their economy; they are hundreds of years tired of being an exporter, dealing with global financial shocks, they see the smoothing of a consumer and service-based economy where things like peer to peer transactions are encouraged. China has no external debt, so they literally could print more money and save any bank in default. The Chinese re more protected than Americans. Our dollar is backed by nothing, banks in debt with derivatives totaling 300 trillion now add unfunded liability likely close to 600 trillion. We will never pay our debt that countries hold. Western Banks will go before eastern banks, and that's when a gold back note will like take shape or gold back blockchain that can not be manipulated by any one country. The real story here is do not have a lot of money in your bank! Debt-based money systems are frauds, top to bottom. Laugh as China, and the same thing is engineered to happen here, eventually. Oh, and your house and cars are collateral for the government debt. Go ahead and hide from that reality, but it will be smacking your ass in the face when Money Power Empire kicks you out of your home under the pretext of government debt the way Nazis kicked Jews out of their homes under the guise they were a threat to Germany. Maybe Money Power Monopolist Empire will create work camps for the dispossessed. For those that don't remember the last run on a bank was a Chinese owned bank in New York when the rumor spread the bank President was involved in some suspicious activities. China has traditionally not trusted the government or banking, and I am anticipating large runs on banks as things collapse in China. Although the Social Extortion Score will undoubtedly be used to try to influence against this, proving, of course, that the government can not be trusted. In anticipation, China has rolled out a social credit scoring system that will down check you if you make a run on your bank. Putting the Chinese citizens between a rock and a hard place: run to your bank and withdraw money for food, or lose the right to take a plane. Citizens will be getting restless as the rock, and hard place get closer together. We're their largest debtor, and they are slowly unloading the US debt because they need more foreign reserves. They are even limiting Chinese citizens' ability to withdraw US dollars from their US dollars denominated bank accounts. Run the bank, then! What happens when depositors realize that their money, as they suppose, isn't money but a future claim against labor unperformed? And it is infinitely able to be diluted, infinitely inflatable. Indeed, a great discovery. Banking, checking accounts, the scrip of the state, etc. It is the province of abilities and powers beyond open sight. This token of exchange forced upon you and pushing you forward for life's necessities is beyond your control. It is only worth what you, at the very moment of exchange, take it for. It will be degraded, maybe even destroyed, momentarily. As with many troubled banks in China, improperly collateralized loans were approved without verification. Indicators from before 2016 pointed to trouble in the sector. Corporate governance structures are able to affect lending decisions with respect to collateral requirements and that the degree of influence depends on the controlling shareholder type, as well as problems with associated agencies. The reason the problem is so significant is that rampant corruption allowed these banks to operate for years. Meaning the problem only got bigger. Never only one roach under the fridge. That is the time for people to begin growing their own food and bartering with their neighbors in earnest. Society was maneuvered into cash dependency and can just as quickly learn to do without money. It's the parasites at the very top who cannot survive without it. Sincerely though, I do believe they may be getting ready to force a digital monetary system globally. After the Bank Bail-ins, of course!!! Bye, bye cash. Who in their right mind would leave money in an institution that can only stay open because of QEternity . They are merely surviving on confidence, and when that evaporates, so will your savings.












The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more