Part 1/8:
China’s Economic Crisis: A Deep Dive into a Looming Collapse
As the world witnesses the unfolding economic crisis in China, it is crucial to understand the underlying factors contributing to its imminent collapse. With government debt skyrocketing and yields on bonds hitting unprecedented lows, the situation is dire and calls for scrutiny.
Analyzing the Yield on Chinese Bonds
Over the past year, the 10-year yield on Chinese government bonds has plummeted to an unprecedented 1.6%. The 2-year yield has similarly fallen to a record low of just over 1%, while one-year yields are also approaching these all-time lows. This trend is alarming when compared to the historical context of these rates, particularly when considering the inverse relationship between bond prices and yields.