Is China's Economy Collapsing?

I wish you guys wouldn't make these videos so basic. Especially economic ones. And I wish you guys would explain why the stock market is suffering.

I think it would also help if the local journalism would report the issue and not over state the issue. And not focus to much on how the 'crash' would change the value of their money, but instead focus on how to change the situation. I honestly believe that if the news wouldn't have shouted crash crash crash! the impact would have been less as the consumers wouldn't have gotten so 'tight fisted'. Plus ofcourse regulation the professional gamblers at the banks and stock trade centres ofcourse. Being a professional doesn't mean your 'addiction' can't get out of control you know.

These two are not economists or financial analysts and several times when speaking ignorantly they show just that. Stick to talking politics.

wait a minute, "speculation" .... ugh.  Most investments are calculations based on hard variables.  The problem with China is the same issue back in 97, two books.  One that the world see's and the country would like everyone to see and the real book.  The Asian tiger economies paid the price for that in the late 90's going forward, so is China.  Also on point, the use of "regulatory action" is way off in this video.  Everything has inherent risk, "what happens?" As if to say to what exactly?  The video already stated if you have a boom, then you have a bust.  So the argument is already a false premise to try and contradict it or is it to say, a flat line economy, neither booming or busting?  Corruption in China with its two sets of books and its hybrid economy where one side saps the other and too much gov spending, combined with pride and no real way to control its on inflationary issues via the gov spending and currency basket expansion.  Transparency is needed in China and good luck getting that.

As expected, the Liberals avoid mentioning the real problem - Socialism.

China is a command-economy. When bureaucrats manage the economy, based on cronyism and ego, you get a GDP that is an exaggerated sham; factories that don't make anything, malls where no one shops, ghost cities.

Free Trade is not good trade or equal trade, every free trade treaty Australia has signed has destroyed the Manufacture Industry, Now for one bucket of iron  we sell for a dollar comes backs as a 12 dollar Toy or other product made by someone only earning 2 dollars an hour

Lets listen to the most qualified economists in the world...The Young Turks






rly guys...?

This is what happens when you let the Wall Str. sharks into your market. Look at the dates on your chart and you will notice the "coincidence"

TYT would be much better if they got commentary from expert interviews regularly instead of just repeating headlines

Time to buy stocks in China, just wait for the situation to stabilize. Specially stocks that the government is buying. You can get rich now.

holy shit! not a single "murica" joke. nothing... hum... lol.

So essentially the point I am getting from this is the stock market works as long as people invest rationally and realistically.  Yeah, good luck with that.

You hate charts that don't go down to zero, and you think they're inherently deceptive?  The left side of the graph shows you where it's lowest point is, so I don't understand your confusion.  How is it deceptive, in any way, to reveal your information?  Because you think there should be a zero on every graph?  Please don't get into science...they use logarithmic scales on some of their graphs, and I'm sure, when you don't like the look of it, you'll call it deceptive too.

It is a mistake to think that China's stockmarket collapse presages an economic one. China's stockmarket still plays a small role in China. The free float value of Chinese markets- the amount available for trading- is just about a third of GDP, compared with more than 100% in developed economies. Less than 15% of household financial assets are invested in the stockmarket, which is why its rise did little to boost consumption and its fall with do little to dent it. Many stocks were bought with debt, but such financing is not a systemic risk; the loans are about 1.5% of all assets in the banking system. Growth, though slowing, has stabilised. The property market, long becalmed, is picking up. Money market rates are low and steady, suggesting banks are stable. So before you make any knee-jerk extrapolations about the consequences of this crash, reflect a little and you'll see it's not so bad.

So, Europe has the Euro, America has the Dollar, and Japan has yen, so does Greece have the IOU?

Yawn... So many words and so little substance.
Yeah, the 30% drop ALMOST brings the market value back to where the market was  THREE months ago in MARCH, 2015!!!

lot of people commenting below dont have a clue on what they are speaking

China, like the US, can just print more money, and I'm sure that is what they will do. This, of course, is not without consequences but it does diffuse the blow somewhat. The net result is that the rich get richer and the poor get poorer.

The biggest difference between america and china is america never fixes underlying risk and china might run through 1 or 2 more of these drops but that's it. The chinese leadership will slam down on this like a hammer before too long. I hate authoritarian
governments but China I kinda like, They see a big problem they fix it. No questions asked.

Actually, Red in China means the stock price increased (because red is auspicious). "Seeing Red" is actually an ironic caption.

I don't get it. These people invent numbers, and say that they are earning more because of a system that doesn't actually exist. And then when the numbers they make up come out negative the whole world burns down. Wtf is going on.

Have bubble will have burst. The world comes next. Bad times coming for all of us soon. Real bad.

It's all part of the NWO's plan.

Stock market collapsing seems to be the most artificial crisis that can be easily fabricated. I know theoretically it help companies raising fund, in actuality lots of big investors sweeping money by repeating buying and selling in minutes, and many individual investors think it as a gamble, not investment to help companies. Can't there be a better solution?

It's all coming down, you morons. The global currencies have been inflated to the point that there is nowhere to go but down. You can thank central banks like the FED, global bailouts by idiots who think manipulating digital zeros will not have a disastrous effect, and idiotic liberals who think the way of the future is unlimited entitlements for anyone non-white.

Don't worry though, these are only birth pangs. When the real shit hit's the fan, all you morons will wake up and realize that paper money you invested all your hopes and dreams in is worthless, and all the "crazies" who stockpiled hard assets will be your daddy. You will then work for pennies on the dollar to survive like those of the real great depression - Not that bullshit pseudo great depression you all think was tough.

Welcome to the collapse you made possible. When it crashed down, see how long your beloved liberal Utopian cities remain civilized - I give em a week, two tops.

if china is crashing that is even worse news for us what the fuck...

Because unabated economic growth is the height of progress! Pave those fields with roads. There's money to be made!

I love watching people expound on subject way over their heads as if they knew something.

All we needed to know about how much trouble China is in was shown to us by the panic in the leadership; they are not as smart or as in control as they think by half.

the only thing China has done is print more money!
idiots.

I almost fell out of my chair laughing when you compared the actions of Chinese with thinking people.

There was one good thing about this presentaion; no Cenk!

Yeah! and their lungs are happy about the government’s "Control," too.

You guys are so stupid. but at least you are good for a few laughs!

Chinese stock market is going back up again. Looks like communism works.

their economy is not "collapsing", "melting down", or any other alarmist word American journalists use. look at the growth in 2015, it was obviously a bubble. its just returning to normal.

Well since all the "Big Trouble in Little China" jokes have been done.... I guess all that is left is to comment on how many times the host says "...cumming on the back..."... if that has been done... I suppose we could discuss proper reforms for financial situations around the world and share some tea...

Die China's Evil dictators!

China's shine up, because Deng Xiao Ping decided to open the door for the Capitalism system to replace the old ideologies of the Communism. The major country of the United States and Japan are the only two countries really financially benefited them. Their corruptions are extremely strong that dragged their dramatical amount of the money into the powerful people's private pockets. It also brought down their moral standard of that recognize the money only instead of the quality of your personality. Greeddyness, cruelty, coldness, selfish and dishonesty turn into the common sense and the trend. This is why people there are really mad and unhappy. This is also why now the new leadership tries hard to correct the problems now to stop the corruptions by their own laws. I believe the fairness. They made so much money from America, they should let America make some money from them too. We scratched their back for so long, and they should scratch our back for a while too. This will only benifit for each other instead of the unfainess. It doesn't mean that we are happy to see them sink, however the principals of helping each other economically are always the wise thing to do. The only problem is that China should establish the solid law systems to deal with international business fairly instead of the attitude that you must follow our country's rules by ripping off of America's companies or American's properties. Because this is not the win win situation, it will only damage their own images and scare any business's away from there. Because if people are bitten by a snake, people will be extremely cautious on even a rope. This is why we must cherish our country's unique exceptionalism of the Capitalism system of the freedoms and entrepreneurship and constitutions. Because this is the only reason that made us strong in both economy and defense capabilities. It also where America's reputations come from.

I like John and Ana

China's had a bit of a construction bubble, building shopping malls, apartment complexes and even entire towns bordering Mongolia that are almost empty all for the sake of redistribution.

Frankly, if they wanted to invest in infrastructure, I would consider cleaning up the air there, it looked disgusting when I visited Beijing 5 years ago, it's probably worse now...

SHEMITAH

Global market, global collaps. Looking forward to see all stockholders run against the big wall to commit suicide.

Eevery year, we see the same stupid prediction of 'China collapsing', every year, every year, with the same stupid words like bubbles , house of cards blah blah blah. If you really believe 'China collapsing', it only means you are too young.

Getting a feeling of Deja Vu. 

Black Monday in 1987, followed by a recession in the West that spanned the late 80s and early 90s; that in turn was followed by the Asian Contagion of the mid 90s.

It's probably the case that both were connected. Essentially part of the same global recession.The growth of the Asian Tigers built on Western consumption was hit severely by a fall in Western demand.

The staggered delayed reaction might be down to the Asian Tigers attempting to stimulate demand - however, no matter how much stimulus they threw at domestic consumption - it was not going to full the void left by Western demand.

Then, as I remember, a few years later, a massive recession hits Latin America - striking particularly harshly in Argentina; that saw a massive Depression from 98 to 2002.

It seems Recessions spread like viruses from one continent to the next over the course of a decade. No matter if you take your flu jabs and vitamins - the contagion will catch up with you in the end.

In the Chinese stock market, "red" means "increase" (because red is a lucky colour in Chinese culture) and "green" means "decrease" (this is where the term "vegetable market" is derived from).

China is now the world's biggest economy in PPP (not nominal) terms. Its GDP growth for 2015 was still roughly 6.8-7%. While this is a slight slowdown - which was expected since this happens to all economies once they industrialize more and more - it is by no means a "collapse".

You should NEVER use stock markets as an indicator of economic performance. The only thing that the stock market can show you if and only if the economy is deeply intertwined with the stock market is momentary risks. Even a small change in performance for an economy can set off a big change in the stock market. This can cause trouble if the volatility itself causes companies like Lehman Brother's to go bust and set off a domino effect.

The 21st century is the chinese century - it is the century when USA finally is overtaken by China as the world's superpower. The USA will never get back up.

the young turks is so self righteous. they feel everyone should agree with their viewpoint. Often using phrases like"are you serious" kind of implying ppl with other perspectives are out of their minds. can they be slightly more neutral and actually provide people with accurate information instead of trying to brainwash. they say join them? I think not.

people over hyped this economic slowdown

Fake news.

The "success" of Stalin - the man who used to boast about having conducted the U.S.S.R. "from the plow to the atomic bomb in just a generation" - compared to Gorbachev's failure shows that a socialist economy is unable to function with a minimum of efficiency without requiring a massive dose of political violence. In an attempt to reform a decadent regime, Gorbachev moved faster with the process of economic opening in the hope of removing the predictable resistance that the Soviet bureaucracy would create to economic reform measures, as thorough proof with the failed attempt. coup d'état in August 1991 - which ended up precipitating the final crisis of socialism and the dissolution of the USSR itself

Its Chinese parallel - Deng Xiaoping - adopted a logic diametrically opposed to that of Gorbachev: it prioritized the achievement of economic prosperity (adopting in practice capitalism) precisely to delay any attempt at political opening, as was evident with the acceleration of the economy. reforms after the Tiananmen Square massacre.

It is important to note that it was Karl Marx himself who, in his Contribution to the Critique of Political Economy, discerned the scenario in which the conditions for a social revolution process are formed, describing it as follows:

“At a certain stage in its development, the material productive forces of society contradict existing production relations or - which is only their legal expression - with the property relations in which they have been active until then. From the forms of development of the productive forces, these relations are transformed into fetters of them. So, it is a time of social revolution. ' *

By rejecting the pursuit of profit maximization as an instrument to stimulate innovation, socialist countries ended up condemning themselves to obsolescence. Thus, they lost the chance to incorporate the productivity gains made possible by technological progress. That is why the capitalist countries managed to provide a greater rise in the standard of living of their population, even without pursuing the egalitarian ideal. Therefore, until the “final crisis of socialism” (to paraphrase K. Marx's own definitions once again), it was only a matter of time. But religious fanatics do not give up on their faith, even against the indisputable proof of the facts, which completely refute it!

* Reproduced according to MARX, K. Preface to the Contribution to the Critique of Political Economy, organized by Florestan Fernandes and published under the title K. Marx: Theory and historical process of the social revolution, In Marx & Engels, Great Social Scientists Collection, History, vol. 36. São Paulo: Ática, 1983. p. 232. Commemorative edition of the centenary of Karl Marx's death