Another sign we are getting closer to another global recession Moody's has downgraded China's credit rating due to a worse than expected forecast on the economy.
China's outlook has been changed from stable to negative
Increased debt and a slowing down of chinese growth are amongst the largest reasons for this downgrade which increase the cost of borrowing across China
The downgrade comes at a time when China has been actively trying to clean up its borrowing practices which many experts claim could spiral into further financial troubles.
China plays an important part in the world economy being the second largest importer of goods and it is a very large buyer of oil and other commodities.
First downgrade in 25 years for the Chinese economy
If this is not a warning bell then I dont know what is, as the economy slows down and debt increases in this country I think we will see the effects on the global economy in a manner that most would not expect.
Chinese debt is at 260% of Gross domestic product
These levels of debt mean that the risk for the chinese economy is starting to build. It will be interesting to see how the government will handle this downgrade and implement reforms. Likely they will just print more money which in turn will devaluate the Yuan. Of course this is good news for cryptocurrency as a whole!
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"Chinese debt is at 260% of Gross domestic product". This is frightening. But whole world is in madness. Maybe this is new reality. Just look at the crypto bubble.
Lets hope that we are not facing a bubble yet in crypto. I really have a good feeling about the coming weeks, maybe the price of bitcoin will crash at some point but there are many good alternatives such as steem that dont have network problems like btc. Followed btw :)
Followed you back :). Who will buy all that coins. There are 7 coins with marketcap worth more than billion USD. Steem don't have network problems but there are many others. Who will buy Steem and why? You need to invest 100.000USD to have pathetic voting power. And than what? Voting for yourself just like I do to get something back from that investment.
Expect further growth in our cryptocurrencies! They are here to stay.
Agreed, we are in the right ship :)
Let us not forget about gold and silver @depth - solid and dependable. SK.
I would definitely make an argument for gold in case of emergency, but you would want physical gold in such a scenario.
i would def say Chinese housing bubble will pop soon and its going to bring down world with it
That means cryptocurrency are realy a Garden of Eden or Save Heaven in this situation. Well at least they are fair and transparent in math algorithm in diff to a greedy human nature.
Cryptocurrencies and public distributed ledgers are without a doubt going to be a big part of the solution that we so badly need.
Disclaimer: I am just a bot trying to be helpful.
A lot of Chinese are interested in cryptocurrencies as a hedge against any devaluation of the yuan and as a way to move money offshore. That's one reason the government cracked down on the Bitcoin exchanges.
One simple advice all cryptocurrencies on China markets are going to the wild beast mode. Put some money there, because the gov know how to use the opportunity to take a lot of money from something like cryptos. This will be happen behind the scene for sure
The exchanges were ordered to shut off Bitcoin and Litecoin withdrawals in January, pending government review of their KYC and AML practices. Rumors are flying that the government will announce its findings next month, and we anticipate BTC and LTC withdrawals to resume. I expect there will be a surge in trading activity, maybe not as crazy as before, but strong nonetheless. Prices will probably go up.
Also beginning July 1, Japan will not charge an 8% fee on cryptocurrency transactions, so that will be another surge in use and interest.
good to know more about situation there. Thank you @wheatdogg
You're welcome. I forgot to say that you're right about the government's attitude toward Bitcoin and the other cryptos. The government hopes to leverage cryptocurrency markets to bolster the national income, which has been slowing down since last year. They don't want to ban Bitcoin, etc., completely, because that would mean cutting millions of dollars out of the national economy.
By the way look ETC 2 dolars for 6 hours and it will continue
Thanks for sharing
Upvoted for the good content
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Let the fun begin!!
(Most of us commenting will already be prepped so I don't think I will be hurting feelings)
Up-voted, following and will resteem @mallorcaman.
Have a great day - SirKnight!