Bank run currently happening in China?

[whatchamacallit]

There’s a run on Chinese banks and it’s being ignored by the world

https://www.asiamarkets.com/chinese-banks-run/

[joypog]

Yikes. I've been wondering how the real estate semi-defaults in china might play out. Heart-wrenching.

[barrett]

Here in the US a lot of people had their right to work taken away from them for part or most of the pandemic, but there were payments from the government to at least partly cover that disruption. The Chinese government has done nothing similar as far as I know. The "virus" lockdowns have been brutal there with hundreds of millions of people being affected. And the people know that banks in China have a history of shady behavior. For example, those 4% annualized yields that were mentioned in the article (they are basically CDs) are made possible by a kind of Madoff scheme. They are not based on, say, banks being able to lend at 7%. Combine not having an income with the general knowledge that banks are operating in an opaque manner, and it's only natural that people want to get out whatever they can ASAP.

By the way, I put the word 'virus" in quotes above because, according to my Chinese friends, what's really going on with the lockdowns is a struggle within the Communist party before they meet later this year to either extend Xi's reign or kick him out. Xi is more or less taking an extreme action and paying very close attention to who is following and who is not. Those that are not suffer severe consequences.

[Kbg]

Interesting post and replies folks, thanks!

[joypog]

By the way, I put the word 'virus" in quotes above because, according to my Chinese friends, what's really going on with the lockdowns is a struggle within the Communist party before they meet later this year to either extend Xi's reign or kick him out. Xi is more or less taking an extreme action and paying very close attention to who is following and who is not. Those that are not suffer severe consequences.

To be fair to their government. From waht I know, the lockdowns are targetted against the virus. It's heavy handed where it shows up because "show's up" as defined as anything more than zero. But elsewhere, people are living more or less like normal.

What I find aggravating about their management of the pandemic is their low vax rate in their population - only 2/3rd of their 65+ pop is vaxxed. If you are going to put entire metropolises on house arrest at a moment's, then FFS you should be able to force everyone to take the vax. Zero covid, 100% vax.

Their unwillingness to take the logical next step in the process lends credence to the theory that this is some more of a power play within the party (which was fracturing before Xi) than a coherent anti-covid strategy.

[dualstow]

Wifey said some people traveled to complain about the bank run only to discover that, despite being perfectly healthy, their official health app suddenly told them they were not safe to enter the area and thus could not complain or make a withdrawal.

[joypog]

Wifey said some people traveled to complain about the bank run only to discover that, despite being perfectly healthy, their official health app suddenly told them they were not safe to enter the area and thus could not complain or make a withdrawal.

The commies have finally implimented CONTROL's cone of silence in IRL!

[dualstow]

[barrett]

By the way, I put the word 'virus" in quotes above because, according to my Chinese friends, what's really going on with the lockdowns is a struggle within the Communist party before they meet later this year to either extend Xi's reign or kick him out. Xi is more or less taking an extreme action and paying very close attention to who is following and who is not. Those that are not suffer severe consequences.

To be fair to their government. From what I know, the lockdowns are targetted against the virus. It's heavy handed where it shows up because "show's up" as defined as anything more than zero. But elsewhere, people are living more or less like normal.

What I find aggravating about their management of the pandemic is their low vax rate in their population - only 2/3rd of their 65+ pop is vaxxed. If you are going to put entire metropolises on house arrest at a moment's, then FFS you should be able to force everyone to take the vax. Zero covid, 100% vax.

Their unwillingness to take the logical next step in the process lends credence to the theory that this is some more of a power play within the party (which was fracturing before Xi) than a coherent anti-covid strategy.

Don't want to get too far into the covid weeds in this thread but just a couple of points:

I think Omicron and it's sub-lineages are so damn contagious that there is just no controlling them, at least not over an extended period. So it doesn't just "show up" in Shanghai, Beijing or wherever. It's everywhere. Wife's sister and mom live in Shenyang in the Northeast and were locked down for about six weeks. Now they are free to move about but have to show up to be tested three times per week. This massive & ongoing obligatory testing is going on throughout China and is putting a huge financial strain on municipal governments. And the CCP are saying that it will continue indefinitely. But they are just pushing back the inevitable. What happened in South Korea a couple months back and what is going on in Taiwan now (lots of cases and lots of deaths) will almost certainly happen on the Chinese mainland. It's just a question how long it takes. By the way, I am not a virologist but I did stay at Holiday Inn Express last night!

Sinovac is way less effective than Moderna or Pfizer at preventing severe disease & death UNTIL three doses are administered. At that point it's apparently equal to the mRNA versions. Yes, the older people are more reluctant to get a second or third shot but I do wonder if that is partially to do with the side effects suffered with shots one and two. My MIL had a terrible reaction to the second dose and is hounded endlessly by the authorities to get a 3rd shot.

Alas, when we speak with my wife's relatives on the phone, we are not free to really ask them anything. And we don't for fear of getting them in trouble. So we have to piece things together over time.

Anyway, I think having written this all out, I am not really disagreeing with you on much of anything except the idea that Omicron can actually be contained.

[dualstow]

Interesting!
We’re also very careful on the phone.

[joypog]

Anyway, I think having written this all out, I am not really disagreeing with you on much of anything except the idea that Omicron can actually be contained.

Oh I agree completely with you on this as well. It's just a matter of time. I was merely noting that they have been successful-ish so far in at least one major city outside of Beijing and Shanghai. But that's not going to last, its just a question of when and how bad the hurricane will be when the dam bursts (gotta mix those metaphors!).

[boglerdude]

> Xi is more or less taking an extreme action and paying very close attention to who is following and who is not. Those that are not suffer severe consequences.

Well our party of empathy, the Left, would never allow a purge in the US. btw the covids are surging, mask up.
https://news.yahoo.com/covid-reinfectio ... 29351.html

[barrett]

Another thought I had on this is kind of conspiracy-ish, but here it is. Paying with cash used to be the way most transactions were settled in China but the CCP has been trying to make that more difficult. Not saying they are causing whatever is going on with cash withdrawals… just that they may not be super motivated to intervene.

[dualstow]

It continues
https://www.cnn.com/2022/07/10/china/ch ... index.html

[Smith1776]

Fascinating stuff. Corruption and impropriety both span the globe, but I personally would be very sketched out at the idea of keeping capital within China's banking system. These types of banking crises are exactly what Harry Browne warned us about, too.

Dare I say... hopefully some of those folks diversified across some other institutions or have gold.

[I Shrugged]

Maybe one day they will push the serfs too far.

[glennds]

It continues
https://www.cnn.com/2022/07/10/china/ch ... index.html

Just imagine if something like that happened in the US. And consider that bank reserve requirements were dropped to zero in March 2020 which where they remain today.
Money "printing" gets a lot of attention, but very little talk about the zero reserve requirement. Just think about the money multiplier effect and how much money creation happens in the course of bank lending in a zero reserve environment. And then think about what would happen if there was a run of customer withdrawals?

[dualstow]

I try not to think about it

[boglerdude]

Reserve requirements havent mattered in a while. Its capital requirements ie the bank owners amount of skin in the game. The social credit system is the thing to be concerned about. Unless you think its good. http://forgifs.com/gallery/v/Political- ... e.png.html

[I Shrugged]

Reserve requirements havent mattered in a while. Its capital requirements ie the bank owners amount of skin in the game. The social credit system is the thing to be concerned about. Unless you think its good. http://forgifs.com/gallery/v/Political- ... e.png.html

I’ve been thinking that the social credit system will first be implemented in USA for vetting for gun ownership. But that’s for another thread.

From the link:

[boglerdude]

> the social credit system will first be implemented in USA for vetting for gun ownership

It started with the cold/flu shots

https://old.reddit.com/r/Libertarian/co ... es_square/

[dualstow]

Sometimes I wonder about my wife’s family’s social credit score in China.
So far their bank situation is ok, but I’m a bit worried.

[Smith1776]

Sometimes I wonder about my wife’s family’s social credit score in China.
So far their bank situation is ok, but I’m a bit worried.

I worry about my family there too.

[dualstow]

I’ve been thinking that the social credit system will first be implemented in USA for vetting for gun ownership. But that’s for another thread.

From the link:
http://forgifs.com/gallery/d/376369-1/S ... actice.png

I’ve been working on the characters that I can make out at the top of the billboard. Came up with something like, Untrustworthy Individuals Exposure Station

[I Shrugged]

I’ve been thinking that the social credit system will first be implemented in USA for vetting for gun ownership. But that’s for another thread.

From the link:
http://forgifs.com/gallery/d/376369-1/S ... actice.png

I’ve been working on the characters that I can make out at the top of the billboard. Came up with something like, Untrustworthy Individuals Exposure Station

That would fit. It looks like a wall of shame kind of thing.