The Chinese economy in danger for 100 years!

The sky is darkening dangerously above the Middle Kingdom. Indeed, according to the alarmist forecasts of the famous investor Ray Dalio, all the ingredients are now in place for an economic storm of rare intensity to hit China. Worse still, this turmoil could well have devastating repercussions for the entire century to come. An apocalyptic scenario to say the least that the billionaire details without tongue in cheek.

The deadly economic spiral of debt

At the heart of the future explosion is first of all the unsustainable Chinese debt problem. According to Ray Dalio, this has indeed reached levels that are far too high, both for businesses, households and local governments. An explosive cocktail dangerously weighing down the balance sheets of the Middle Kingdom.

But the worst is yet to come. Because this explosive situation is accompanied by a vicious chain of events in which each element aggravates the previous one. On the one hand, the violent collapse of real estate and stock market prices is drastically impoverishing the Chinese, eroding their confidence and consumption. On the other hand, this recession inexorably leads to an increase in unemployment and downward pressure on wages. A vicious circle devastating the economy.

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When demography increases the threat tenfold

But that's not all. Other cataclysms, demographically this time, also seem to be shaping up to complete the Chinese economic structure. With the problem of accelerated aging of the population due to the old one-child policy, the Middle Kingdom is facing a planned collapse of its working population. A massacre predicted for the country's vital forces.

Furthermore, the merciless rivalry between the United States and China is pushing many Western multinationals to desert Chinese lands. A hemorrhage of damaging foreign direct investments which adds to the accumulation of calamities. At the same time, other low-cost countries such as India or Vietnam appear as increasingly attractive alternatives, further accelerating the inevitable Chinese economic decline.

In the end, China indeed finds itself confronted with an economic surge of a power rarely seen. Between the abysmal debt, the impoverishment of households, galloping unemployment, demographic decline and the flight of foreign investors, all the destructive elements seem definitively united. Better yet (or worse), this economic tsunami is only just beginning, according to Ray Dalio. Because the billionaire warns that this chain of scourges would only represent an initial stage, before the final blows of climate change and the future trade war with the United States arrive.

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