🚨 Global Crash Ahead?| China & the US Establish Joint Anti-Financial Crisis Group in a Surprise Move #Finance

hello everyone thank you for tuning in I came across quite unusual and I would even say perhaps ominous somewhat ominous article in light of the latest economic events the article was published by Bloomberg and I thought I would share it with you today I think this is very important so

Bloomberg is reporting that the United States and China agreed to create a joint contact group for cases of finan IAL stress this is good news of course as it shows that there is a desire to cooperate on matters that may have Global implications and given how interconnected the world is a financial

crisis in the United States or in China would in theory have a Global Effect however the timing of the decision is quite interesting given that about two weeks ago on August the 5th the Japanese Stock Exchange Stock Market and then subsequently followed by global

Markets crashed sparking fears of an imminent financial crisis although Markets

have recovered since then this recent volatility is perceived as a distinct red flag according to Bloomberg China’s central banks said a meeting in Shanghai produced an agreement with the US Treasury to appoint contact people to deal with any future quote Financial stress

events a rare example so Bloomberg is acknowledging that this is a very rare example of the world’s two biggest economies seeking Common Ground last year the United States and China set up a financial working group that is tasked with focusing on the China US Financial stability Corporation

the US Treasury released a statement on August the 19th this week stating in support of coordination during times of financial stress to strengthen appropriate information sharing and reduce overall uncertainty between Treasury and the People’s Bank of China

regarding crisis management and recovery and resolution Frameworks I do believe that a degree of coordination in response to a possible economic or financial downturn is indeed a step in the right Direction it would be nice to see this type of thinking this line of thinking expand and possibly

cover other areas preferably related to security although we of course understand that that is highly highly unlikely that is wishful thinking of course but still it seems to me that creating a joint Financial Response Group or team however you want to refer to it is quite unusual especially for

the United States and China so this leads us to the question why is this happening now what what is this timing how could we explain it so I believe that there are several reasons and I will focus on the two top reasons in this CashNews.co first of all China the single largest foreign buyer of us

treasuries has been selling us treasuries at an accelerated pace for over a year now as you can see here over the last decade the Holdings have declined almost to the 2010 levels at the same time there has been a consistent demand for Gold by central banks of China as well as by the central banks

of Russia and India so the two Trends support dollarization moreover the United States is fully aware that China the number one trading partner for most countries in the entire world is now settling an increased number of transactions in the Yuan versus the US dollar as the entire world and I

believe the United States as well understands that the United States is on the path to a sovereign Debt crisis far worse than the 2008 financial crisis the risks to global economy are actually immense due to that very reason economies are so interconnected in the latest report as

of July of this year the international monetary fund fund included a brief discussion of international trade trends that highlight the ongoing Global Market fragmentation and countries actually imposing unilateral trade restrictions which will ultimately lead to much weaker economic growth globally

and less resilience to a variety of shocks including those related to Armed conflicts or a Health crisis the IMF right in many countries public Finances have deteriorated

more than foreseen before the pandemic leaving them more vulnerable more countries are now going their own way imposing unilateral tariffs or industrial policy measures this surge in unilateral measures is not likely to deliver lasting and shared Global Prosperity this is so important if anything

it will destroy trade and resource allocation spur retaliation weaken growth and make it harder to coordinate policies that address Global challenges unfortunately we find ourselves increasingly at a remove from these basic principles even though the IMF didn’t really go into too many details

there it is quite clear in my personal opinion that the risks are increasing and in general unless those factors that worsen this discouraging Outlook are reversed and I’m mainly talking about economic sanctions about trade barriers about armed conflicts here unless those are somehow reversed

I would argue that it is safe to assume that economic conditions are unlikely to improve substantially so with that in mind I believe that this joint attempt between the United States and China to somehow manage global Financial risks the attempt is a response to escalating threats and risks very

often I discuss the most recent economic data and the risks associated with the banking sector and I believe that the data applies here as well it describes the economic conditions that effectively motivated this type of collaboration or at least an attempt to communicate China has historically

been one of the top US Debt holders yet due to geopolitical tensions it has been selling its Holdings Japan has been doing the same even Belgium has sold its US treasuries the US is very concerned that the global demand for the US dollar is gradually declining it’s not going

to disappear all of a sudden or overnight but it will grow weaker if we look at the banking sector we have to admit that the financial sector is interdependent for example German banks have high exposure to the the United States commercial Real Estate Loans with

commercial property Valuations declining 2030 or even 40 50% those Overexposed German banks are on the hook here with Germany being Europe’s largest economy it is safe to say that Europe will be impacted in fact European Banks hold 1.5 trillion dollar in the troubled us

mortgage Loans these banks are concerned about a lender’s ability to handle the risk well they won’t be able to handle it French and German banks are the biggest commercial Real Estate lenders hopefully this Illustrated just how interconnected Global

economies are it is not surprising at all then that as uncertainty Rises there is less confidence in the recovery the coordinated effort between the United States and China to at least have an open line of communication just just in case is a sign that a worst case scenario would be truly

devastating and it pushed them to I’m assuming to at least make an attempt to mitigate some risks this quick CashNews.co I hope that it was informative if that’s the case please show your support give this CashNews.co a thumbs up consider sharing it and subscribe both on Rumble and on

YouTube I would love to have you back for my next one tomorrow enjoy the the rest of your day take care