Gordon Chang

But the problem is when you're a consumer, you don't buy things when things get cheaper because you're going to wait six months or a year until prices are lower. And so what we're seeing is a large portion of the Chinese economy consumption is now, I think, shrinking. And China is now in a debt deflation sort of cycle. We should know about this because that happened to us in the 1930s.

So the way to put it to Mike Baker, the economist, is China is looking at the Great Depression.

So the way to put it to Mike Baker, the economist, is China is looking at the Great Depression.

So the way to put it to Mike Baker, the economist, is China is looking at the Great Depression.

Yeah, it's big. It is very big. And it has a lot of money. It's not spending. And the other thing about the middle class, it's getting poorer. About 70% of the wealth of the Chinese middle class is property. Property prices are plunging because there's too much of it. Give you an example of how much is too much. or how far they're in it.

Yeah, it's big. It is very big. And it has a lot of money. It's not spending. And the other thing about the middle class, it's getting poorer. About 70% of the wealth of the Chinese middle class is property. Property prices are plunging because there's too much of it. Give you an example of how much is too much. or how far they're in it.

Yeah, it's big. It is very big. And it has a lot of money. It's not spending. And the other thing about the middle class, it's getting poorer. About 70% of the wealth of the Chinese middle class is property. Property prices are plunging because there's too much of it. Give you an example of how much is too much. or how far they're in it.

Last September of 2023, a former senior statistics official in China said that there were enough vacant apartments to house the entire Chinese population of 1.4 billion people. Although this official said there are other estimates that show that there are enough vacant apartments to house 3 billion people.

Last September of 2023, a former senior statistics official in China said that there were enough vacant apartments to house the entire Chinese population of 1.4 billion people. Although this official said there are other estimates that show that there are enough vacant apartments to house 3 billion people.

Last September of 2023, a former senior statistics official in China said that there were enough vacant apartments to house the entire Chinese population of 1.4 billion people. Although this official said there are other estimates that show that there are enough vacant apartments to house 3 billion people.

Now, the law of supply and demand doesn't work exactly in the same way as a command economy like China's, but it does apply. And that means property prices are going down, which means that 70% of the wealth of the Chinese people is shrinking.

Now, the law of supply and demand doesn't work exactly in the same way as a command economy like China's, but it does apply. And that means property prices are going down, which means that 70% of the wealth of the Chinese people is shrinking.

Now, the law of supply and demand doesn't work exactly in the same way as a command economy like China's, but it does apply. And that means property prices are going down, which means that 70% of the wealth of the Chinese people is shrinking.

And a lot of Chinese people are not very happy about this situation right now, which is the reason, and here this is for Michael Baker, the economist, that's why we're seeing record amounts of both legal and illegal capital flight from China. That doesn't happen when you're growing at 5%, as Xi Jinping claims, which is his target.

And a lot of Chinese people are not very happy about this situation right now, which is the reason, and here this is for Michael Baker, the economist, that's why we're seeing record amounts of both legal and illegal capital flight from China. That doesn't happen when you're growing at 5%, as Xi Jinping claims, which is his target.

And a lot of Chinese people are not very happy about this situation right now, which is the reason, and here this is for Michael Baker, the economist, that's why we're seeing record amounts of both legal and illegal capital flight from China. That doesn't happen when you're growing at 5%, as Xi Jinping claims, which is his target.

It happens when your economy is about zero, which is where China is right now, because of the deflation, and you've got the debt overhang. So this is a pretty grim situation. It's not insoluble, but it is insoluble if it's countries led by a malice. And that's where China is right now.

It happens when your economy is about zero, which is where China is right now, because of the deflation, and you've got the debt overhang. So this is a pretty grim situation. It's not insoluble, but it is insoluble if it's countries led by a malice. And that's where China is right now.

It happens when your economy is about zero, which is where China is right now, because of the deflation, and you've got the debt overhang. So this is a pretty grim situation. It's not insoluble, but it is insoluble if it's countries led by a malice. And that's where China is right now.

A lot of it is going out to Hong Kong, which is part of the People's Republic, but it's outside of China's currency walls. And then from there, it goes all over the world. It goes into the United States, goes into Europe, goes into... Southeast Asia. But money is leaving in really big numbers.