China’s Big Lie Is Growth - Updated

Daniel R. Treccia
10 min readDec 22, 2022

Regulatory agencies in China and US you’ve never heard of, with ChatGPT

I’m sorry but when you’re $300 bn USD default on corp bonds (debt) and your foreign financiers aren’t calling you on it, you usually hear news pretty quickly — It’s been 15 months since China Evergrande Group (Cayman Islands entity) defaulted first.

Edit 12/23/22: Fun woke thoughts for Christmas.

China Evergrande Group, the entity doing the most property development that came to my attention after it’s first default on corporate debt to the tune of $300 bn in USD denominated liabilities exposed the facts to my United States-based eyes. China’s real estate sector was responsible for GDP reports to the tuned of 29% and ranked #1 in GDP at times while the scheme of building massively large real estate projects on credit (basically) drawn in various ways has left China with ghost cities. If you’re not aware of what a ghost city is, in China its a place where no one lives — believe it or not that is possible with 1 billion people living within Chinese borders — and entirely unpopulated. Some of these apartment complexes have been bought as second or multiple residences of Chinese middle class buyer, but most sit empty year round. That’s because this is a scam of massive proportions to make it seem like GROWTH is occurring in a sector that China Evergrande Group is actually making sales in!

Wikipedia isn’t trustworthy but there’s your recap.

I can’t focus on China Evergrande Group but I will say the red flags are obvious. Borrowing in a bastardized way through selling your fake growth numbers and bonds to investment banks is a wonderful way to make money especially if the United States and United Kingdom based banks buying your bonds know your growth is bullshit. It’s why default #1, #2, and #3 only made news when the Chinese middle class and local banks on the line in this scheme decided to make this a problem the news covered because China Evergrande Group was selling developments to China’s middle class in form of a pre-sale. The basic scheme:

  1. Take out massive credit by selling bonds for international bank cash with a maturity date that allows decade-plus development to build a property development company with massive amounts of construction that manage to prop up your middle class with jobs and money for multiple houses.
  2. Run up the liabilities to $300 bn while the first maturity dates hit and pay for your bonds because the fake market is making the middle class wealthy enough to trust the numbers enough to buy their homes, usually a second or third, in advance.
  3. Pay mature bonds with money from pre-sale cash, instead of being profitable enough to pay the bonds from organic market development. This goes on for a little bit until COVID-19 hits every market.
  4. Another crisis hits because pre-sales (in form of a ponzi scheme) have no housing dating back to 2016, even though many ghost city developments exist — like a, lot of ghost cities. Google it yourself.
  5. Ironically, but not surprisingly, banks are not making a fuss about all their shit bonds being defaulted on. Which tells me that China is just gonna get away with being a black box to siphon cash from foreign banks who have made plenty of money to the point they do not care about these so called bonds. That doesn’t mean people aren’t screwed by buying them on the secondary exchanges as securities in Hong Kong and ADR’s and ADR-like listings worldwide.

So who pays the fucking bill at the end of the day? Seems like Uncle Sam, again. Uncle Sam is just a patriotic lie to subsidize fraud and proxy wars when an American taxpayer goes to work. Probably a bad time for tech companies and banks to be laying off large amounts of employees right?

It’s pretty damn deep though how far this rabbit hole scheme goes and I don’t expect much of the world will ever truly raise issue with it even though its likely to persist in the cycle of being front run in retail investments as well as being ignored in the media because Elon Musk had another amusing day on his Twitter. How you feeling as a Tesla shareholder these days? Welcome to hell.

I’m not one to write anymore myself, most of us just shoot tweets into the abyss and forget. There’s simply too much bullshit to digest these days. I think the context of my writing being rather crass can tell you I’m only writing to make a stance on December 22, 2022 that I can’t fucking stand for this anymore. So without getting into how Japan stopped time the other day by changing its yield curve and “omg massive shock” by all the markets that frontrun you by feeding you Bloomberg and Yahoo Finance statistics all day and place importance on Federal Reserve and Treasury Department actions — they act so shocked that Japan is printing just a little less “free money” than usual and making up reasons why its shocking instead of honestly telling you — all it is, is a ripple effect but in another direction — so small but on a massive scale, exposing direction or “flow” of whatever cash is these days, in another direction. Binance.US immediately reportedly agrees to buy US-filed, Canadian listed (?) Voyager Digital to the tune of $1 bn USD. So why are we here talking about $300 bn USD in unpaid liabilities? One reason — property is fucking real, tangible. Money, as I’ve come to see it, is only real if you earn it and buy things like food for your family, gas for your commute, and pay taxes by April 15 every year.

So China is the next breaking overnight news after BOJ “shock” hits the world. Nomura Holdings Inc. of Japan’s New York based Global Head of “Cross-Asset” trade (yeah…) was on Bloomberg saying they’ve expected this to happen and the flow or “repatriation” of assets is expected to come not from the west to Japan as one Bloomberg wonk tried to throw shit in the air to see if it catches on. This is something you should look into yourself, but Nomura is expecting the “flow” to be in trillions of dollars to the United States. Yes, some companies aren’t as shocked as the media claims that a small BOJ yield curve increase would “rattle” global markets. The day went on and no one seemed to care.

Yet, after Binance bullshit US entity puts out news of an “agreement” of $1 bn to buy some obscure Mark Cuban-tied bankrupt part of the crypto “contagion” the has Binance and “CZ” taking the lead in pushing for regulation as FTX and “SBF” shit clogs the mainstream — an actual bank Wells Fargo got hit with $3.7 bn in penalties of abuse on its consumers by the 2011 created Consumer Financial Protection Bureau.

Oh this made big news for a minute. Just $15.9 billion in total fines paid for various bank bs abuse of consumers since 2008.

So, some stupid regulatory agency (most people have no idea exists) in reaction to the US Housing Market Crisis/World Financial Crisis however you fucking view it. It doesn’t matter. Just another board reacting seemingly in line with changes to the collective-assumed “flow” of money. Weird enough, Binance.US is NMLS ID registered, who knows if they’re also approved to operate by the states and federal government as is part of the ID# being legit. But as you can read from my tweet, this is for Mortgage Lender Obligations? The fuck does Binance.US have to do with NMLS ID? I don’t know we’ll find out — the answer is it has something to do with balancing out a the books for “stability” after the last crisis/recession which as you now know was just a reason to go start another one in China that you never heard of!

That trump quote was from 2017. Guess he never got around to it. But then I turned on my TV and saw this bs as the latest ripple effect of seemingly “frozen” or flat out ignored problems like China’s biggest property developer defaulting on three bond payments to some of the largest banks in the world and no one giving a shit since fall 2021 to really report much on it, we suddenly have news on December 21, 2022/22, 2022 in Asia reporting a plan has been introduced! I have no idea what the fuck it means, so I recorded it for you to watch yourself — at the time I didn’t know and very much doubted it would be covered much since it’s getting dumped on low volume markets just before Christmas Eve. and overnight in the US even though it was “LIVE” at 10:15 PM EST in the US. Great timing on the scoop Bloomberg. Mind you I’ve been well aware of nothing being done about China Evergrande Group for over a year. Just part of life I never expect justice, and when it comes to China I never expect anything from China or the western financier’s to give me god damn clarity.

And more of this factually inaccurate a LATE, breaking news…

A lot of info to digest — and a lot of information late, because around 2 hours before US markets, where many Chinese property development entities trade on ADR’s or other vehicles — an obscure report from allegedly Hong Kong was made on this PROC move but describe a bit more detail that of course — reports another US regulatory entity you’ve never heard of before — this time born in 2002 in the Sarbanes-Oxely Act which is essentially in response to the accounting practices of mainly, Enron (and its many corporate entities). Remember the new FTX CEO? John Jay Ray III famous for being the last chairman of “Enron” after working initially on the mess to get it through Chapter 11 bankruptcy and then chasing down money owed to creditors to the tune of 1 trillion or even multiple reported, alleged, trillions of Enron dollars. Great. I don’t care. The Standard dot com dot hk — the only news made when doing a quick search (as I expected!) reporting what Bloomberg was breaking ‘LIVE’ from their American late night coverage of Asia:

Yes it was crickets even though this report was published in the midst of a pre-holidays low volume day in the US Capital Markets… Shocked! This article is full of regulatory boards and I’m going to do the awesome and useful (actually) combing of this agency packed big terms article that I have no previous knowledge of with you all. If you’re even reading.

This is just 1/2 of a short, but fact packed article.. by some un-named Reuters “Staff reporter” — credible news.

Rolleyes. “Backdoor listings?” in itself sounds shady, and it is unclear exactly wtf that means but hey you’re a piece of shit retail investor like me you’re supposed to just accept it. Fuck no. So what to do? I guess try to understand the flow. I can tell you I made a small bet that this would happen on China ADR’s in real estate assuming a bailout was the reason for MASS SILENCE of both media and humongous institutions supposedly on the line for these defaults… Massive volatility out of nowhere began in late November — you could generalize it to “zomg FTX no!” but that’s a nothingburger. No American’s invested in that shit and I’m certain that most of its creditors or the ghost corporations equivalent of Chinese (“ghost cities) pumped up GDP (29% from real estate! ha… ha… cries.).

Let’s start first with the first sentence which I laughed at- just because it’s laughable that a securities regulatory entity exists in China (equally funny that people assume the SEC and CFTC regulate god damn anything but retail investor cash profits by allowing massive fraud to persist in markets long enough to where civil penalties are nothing and scammers flee off to China, Dubai, wherever with their millions). ChatGPT, the fuck is the China Securities Regulatory Commission?

To be continued… I have more important shit to do with my night, like sleep. Rest assured, given its taken a full 14 months to see any action on these first — epic exposed fraudulent Chinese GDP producing corporation — we have plenty of time to assess the fallout from this reported information out of China. As covered by Reuters unnamed Staff reporter that produced this report we’re going to try and digest, you can see the US “PCAOB” is mentioned with some pretty bold authoritative statements in the scope of this news, and before I log off for the night, here’s ChatGPT’s info on the US PCAOB (fuck if anyone knows what entity that is…):

Then why the fuck am I first hearing of it from a report out of Hong Kong by Reuters?

ON FURTHER INFORMED DIGGING INTO THIS PARTICULAR MATTER I NOW CAN SAY I AM OPTIMISTIC ABOUT ‘UNLOCKED’ COMMUNICATION AND VISION INTO PROC — WE HAVE ENOUGH OF OUR OWN PROBLEMS WITH EXTERNAL FORCES AND INTERNAL DYSFUNCTION — SEEMS LIKE ITS A MUTUAL SOLUTION TO SCRUB OUT SOME OVER REGULATION AND DISTORTION OF PROPERTY VALUES FROM THE EU — WHICH, NO OFFENSE — NEEDS TOURISM TO SURVIVE. :)

Waiting patiently and have left article in original form for posterity.

Might update again. The US needs to stop selling out its people and point fingers. Step up and execute a proper solution.

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Daniel R. Treccia

Daniel authored two books, one on baseball statistics after a career in pro-baseball and next about how he survived a rare fungal disease + lung removal at 27.