China could their economic collapse be good for Bitcoin well he's still doubting that we're about to enter the next phase of the bull market we've all focused on the Wall Street Bitcoin ETFs the fed's monetary policy man they're cutting rates finally woo however we forget that other side of the Pacific is China with a GDP of18 trillion dollar is the world's second freaking biggest economy by far and they are about to turn on the money printers in a serious way and this could pump Bitcoin like crazy so give me less than 10 minutes of your time we're going to dive in and learn what the heck is going on and how this could affect your crypto bags look China has been the world's fastest growing economy since the 1980s it's been a beast its rise to wealth and power is nothing short of just well spectacular this massive economic cho cho China train has been fueled of course by rapid industrialization on Mainland China massive urbanization and a significant increase in consumer spending the low cost of production in China has made the country the world's Factory everything's made in China as you've probably noticed the export driven economy has undoubtedly played a very big role in the country's rise to power into being the economic Powerhouse that it is today in 2023 the USA imported 448 billion worth of Chinese Goods that's a lot of cheddar man for context that is bigger than the G gdps of some countries like New Zealand New Zealand or Denmark crazy stuff now according to the World Bank the country's GDP growth has averaged over 9% per year lifting almost 800 million people out of poverty and making China an upper middle income country pretty cool however if there is one thing that I have learned from looking at the charts nothing goes up forever not even China's economy the Chinese economic engine is starting to lose a bit of steam there's been a bit of an economic crisis Doom and Gloom are hanging over the Asian market right now because of some pretty disappointing data that has been coming from China and while everyone's saying it's going to go low forever we're probably nearing a lower point on a lot of this data meaning the money printing they will come soon we could lift everything up pretty fast now for one the Chinese industrial output growth slows to a f Monon low in August it slowed from an expansion rate of 5. 1% in July to just 4. 5% last month missing the expected 4.
8% growth it is still expanding but the growth rate is definitely in a downward trajectory which is not great and that is not the end of it retail sales and new home prices in China have also weakened significantly retail sales which measure consumption of course Rose by just 2. 1% in August so still going up despite the peak season and summer though where travel and all that stuff happens a lot so it's not as good as it could have been this is also a big drop from July's 2. 7% figure and well below the analysts 2.
5% increase for the year that they expected the property sector as you probably heard many many times many many YouTube videos is also dragging on the economy the Chinese property Miracle has ended the country's new home prices fell at the fastest Pace in more than 9 years this August new home prices were down 5. 3% from last last year ouch the fastest since May of 2015 they've also been falling for 14 straight damn months meaning come probably close to a low point or bottom than not according to blurberry doll in outstanding mortgages as early as this month providing a lot of relief of course for all those homeowners and property investors the job sector in China also in trouble the country's n Nationwide survey based job rate increased to 5. 3% in August from 5.
2% in July a lot of people even said global economy right now is not a US problem it's a China Problem by the way look anyway all this stuff's not really a surprise as Factory output winds down which also means unemploy that unemployment will go up because employment gets infected when people are not buying as much stuff globally with a higher unemployment rate consumers will have less money to spend on Goods which becomes a cyclical problem this will in turn affect manufacturers and the cycle of course just goes goes round and round and round and round and round until you hit a rock bottom and then things start to go back up now before we get into some more implications of this and some more dirty dirty numbers I want to take a quick so to let you with the wealth Mastery newsletter this is your weekly Guide to the cryptocurrency markets look our readers love it I'm sure you will too and here's why it's quite simple it's awesome no look every week my team researchers and I we are 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are on their way to a 4year losing streak the number of startups and China has also dwindled as money just dwindles overall the wealth effect going down as people aren't feeling Rich right now people are feeling the pinch after the US China was the best Venture Capital destination in the world but that's in the past now from the 2018 peak of having more than 51,000 startups the number has dropped to a m 260 260 what we're down from 51,000 to 260 in 2024 what the heck is going on China China and uh just to put the icing on the cake here to all these negative factors chinaese popul or 1. 4 billion also facing a major crisis the population is in Decline falling population will have several negative impacts on any economy okay because with fewer people entering into the workforce there is a chance of course of having a labor market shortage which can of course then hinder growth Ai and Robotics now that might be a solution and of course China is a global leader in that but labor shortage is not the only issue you see as the population declines the proportion of elderly people increases fewer kids more old people this puts all kinds of strains on public resources like the Health Care system and the Pension funds all this kind of stuff you have lots of old people not working I guess you need robots to take care of them all with fewer workers there will be fewer people contributing of course to the Ponzi scheme that we like to call Social Security and with fewer workers there will also be less demand and for goods nobody has any money except the robots I guess there can also be a decline in Innovation since of course a smaller population can result in fewer people contributing new ideas can we all just start having babies again lots and lots of babies are you doing your part I got to we're going to make some more make more babies everybody come on keep screwing around but you know make it happen come on make babies anyway fewer people less taxes all that kind of stuff look the list just goes on of all negative effects right now look there's a silver lining to all this okay okay okay I know you're thinking LK what crypto bags okay I don't think any government or Central Bank would allow the economy just to suum to a free fall without trying to do something China is no exception the Chinese need to step up their stimulus game big time if they want to save their economy now economists are currently calling for an unprecedented listen to this unprecedented 1. 4 trillion with a t doll shock and a stimulus package to revive China's falling economy that's a lot of money man it's a lot money that would inject much needed liquidity into China but also Global markets and Bitcoin will benefit from that massively I can already hear the Chinese money printers buzzing in the background it's coming it's coming now how does this affect your crypto bags directly see when and if China turns on the money printers there will simply be more money circulating out there in the global economy Global M2 money supply will go up dramatically in this situation with the increase in monetary Supply more money of course gets entered into the system that can use to expand businesses that can be used to create more jobs more people have more money there's more wealth effect property prices thr going back up all that kind of stuff they come and buy risky assets they buy your Bitcoin they buy your dog coins man which we really want at the end of the day with business expansion comes an increase in employment rates more consumption grows your economic outlooks big and small investors they start looking to diversify of course into those riskier assets okay not just the dog coins we'll probably buy a Bitcoin too I guess I guess why not increased demand will pump up the prices the volatility will further attract other investors we go through a whole new cycle until we crash down again or we go higher first this creates positive feedback loops which could Propel us of course to new highs don't fade China's money Printing and I'm not the only one who thinks this bitmax co-founder Arthur Hayes he said that the US Treasury will inject between 300 billion And1 trillion before the year ends after which China will finally release its long awaited bazooka stimulus of 1.
