For the last 10 years, we have had a booming global economy. Currently, we have a global panic and this economic growth looks as if it is coming to an end. The party is finally over! Globally, we are facing a very big economic downturn and we have reached to a point where everything has begun falling apart. The economy has come to an abrupt halt as supply chains break and anxiety spread all over. Millions of businesses have been impacted by the supply chains disruptions and this has triggered the biggest economic meltdown since the 2008 global financial crisis.
Will the Chinese economic collapse happen in 2020? China is the second largest economy in the world and in the last two decades, China has experienced a significant economic growth. However, the China has many problems like enormous debts, bank runs, an aging population and many others. The growth in China has been fuelled by debts and poor policies and this has created a hyper bubble that will burst with a china’s yuan crash. People are always asking when the economic collapse will happen in China. For the last several years, we have seen several Chinese banks being shut down. Banks like Baoshang, Jinzhou and other banks have been shut within a very short time. These are some of the cases of bank collapse in China and economists are predicting more similar cases in days to come.
Ever since the last stock market crash, unprecedented intervention by the us Government’s Bank has helped the financial system relatively stable. No matter what happened the Fed always solved the problem but they created the biggest stock market bubble in U.S history. Now they facing with the biggest challenge and it looks like they can do nothing to avoid the next financial crisis. They try to solve the problem with the same old way that worked well in the past and on Tuesday they announced an emergency rate cut and instead of rising the stock market started to crash.