{"id":29432,"date":"2020-01-09T11:04:00","date_gmt":"2020-01-09T16:04:00","guid":{"rendered":"https:\/\/www.escapeartist.com\/?p=29432"},"modified":"2020-11-23T11:25:18","modified_gmt":"2020-11-23T16:25:18","slug":"hong-kong-china-the-us-threat-of-a-global-recession","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/hong-kong-china-the-us-threat-of-a-global-recession\/","title":{"rendered":"Hong Kong, China, The US\u2014Threat of A Global Recession"},"content":{"rendered":"

As the US-China trade war continues and Hong Kong faces increasing political pressure from pro-democratic protesters, many are seriously considering the possibility of a global recession. Economic analysts from HK have already announced that the country has officially entered an economic recession for the <\/span>first time in the past ten years<\/span><\/a>. With the potential Chinese recession resulting from the trade war, we really have to consider what this means for the global economy\u2014and the answers aren\u2019t all that great.<\/span><\/p>\n

Over the past couple of decades, the East has emerged as a leading economic region in the world. China alone accounts for <\/span>30% of global economic growth<\/span><\/a>\u2014indicating that it\u2019s responsible for 30% of all global economic activity. This trade with the United States alone has inflicted a fair bit of economic damage, the political uncertainty in Hong Kong is only adding to the pressure.<\/span><\/p>\n

While the US-China trade war doesn\u2019t directly affect the Hong Kong economy, the damage to the Chinese economy is rippling into the city. A bird\u2019s eye viewpoints out how this trio\u2014US, Hong Kong and China are threatening a global economic recession.\u00a0 With the inevitability of econ<\/span>omic collapse in the East,\u00a0 it might be time to start making some changes to your investment portfolios.<\/span><\/p>\n

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The Economic Linkages between HK And China<\/b><\/h2>\n

Although Hong Kong comes under the authority of the Chinese government, the city still has the autonomy to make its own legislation and economic policy. This political state of affairs effectively means that Hong Kong is a separate economic entity from Mainland China, and had become one of the most well-established financial centers in the world.\u00a0<\/span><\/p>\n

While the Chinese government itself never intervened in the Chinese economy, Chinese companies often used Hong Kong to conduct business with the global economy. Similarly, foreign corporations often used Hong Kong as a springboard to jump into mainland China. Hong Kong, with its financial and debt markets, has long since been used as a source of acquiring investments for Chinese businesses. It\u2019s a mark of how effective this strategy was that nearly <\/span>54% of all the financing<\/span><\/a> for Chinese businesses was raised in Hong Kong.\u00a0<\/span><\/p>\n

 <\/p>\n

The Threat Of Being Cut Off From Foreign Capital<\/b><\/h2>\n

The US-China trade war and the financial uncertainty in Hong Kong represents two of the most severe economic crises for the Chinese economy. The trade war cuts China off from any business from the United States\u2014amounting <\/span>to a total of $660 billion<\/span><\/a> worth of goods trading alone. This is a huge revenue deficit that\u2019s only supplemented now that Hong Kong\u2019s literally hemorrhaging capital\u2014indicated by a fall to a 30-year low valuation of the Hong Kong Dollar back in May. <\/span>Reports indicate<\/span><\/a> that nearly $1.6 billion fled the country through China alone at the same time.\u00a0 Clearly, the Chinese government and financial entities are scrambling to get a handle on the trade war and these political pressures in Hong Kong aren\u2019t exactly helping the situation.\u00a0<\/span><\/p>\n

 <\/p>\n

China\u2019s Response To Capital Flight<\/b><\/h2>\n

The Chinese Central party has hinted at a <\/span>potential military intervention<\/span><\/a> in Hong Kong if the situation isn\u2019t brought under control. Martial law in Hong Kong also signals possible credit controls in the HK economy to prevent people from taking money out of the city.\u00a0 At the moment, these outflows aren\u2019t anything to be worried about, but they might very well accumulate to a point where the mainland Chinese authorities might want to intervene. The increasing political and economic burdens on the country and the shortage of capital inflows don\u2019t bode well for anyone.\u00a0<\/span><\/p>\n

 <\/p>\n

How Does This Affect The US<\/b><\/h2>\n

I find it fascinating how everyone\u2019s focused on the effects of the trade war for the Chinese economy, but no one really speaks of how the US economy\u2019s affected by the war. Experts indicate that this trade war is slowly escalating into a currency war where Chinese investment volumes <\/span>have come down to 10%<\/span><\/a> of what they were back in 2017. These capital outflows will force the US economy, which are already beginning to take effect. The Trump administration is happy with a <\/span>2% annual growth rate<\/span><\/a> compared to a 4% economic growth norm a few years ago.\u00a0\u00a0<\/span><\/p>\n

 <\/p>\n

Implications For The Global Economy<\/b><\/h2>\n

Once the two largest economies in the world begin to collapse, it\u2019ll take the whole world with it. The impacts of a US and Chinese economic collapse will drag the whole world with it\u2014it\u2019s estimated that <\/span>global economic growth rates have halved<\/span> from previous estimates. This really doesn\u2019t look like a welcoming prospect for anyone.\u00a0<\/span><\/p>\n

 <\/p>\n

What Do You Need To Do?<\/b><\/h2>\n

We don\u2019t really know how the tides will turn and if we\u2019ll even hit an actual economic crisis, but it\u2019s still important to have a contingency plan. I\u2019ve <\/span>written extensively<\/span><\/a> about the inverse relationships between securities, exchange rates and gold markets. As these markets crash, people will flock to gold and force the market to rise beyond anything we\u2019ve ever seen before. In light of these economic dynamics, you would do well to start moving money into gold and moving your funds outside of Hong Kong as soon as possible.<\/span><\/p>\n

There\u2019s a potential boom in commodity markets because no one wants to be on the losing end of a US-China trade war. Even now, global gold markets were rising because investors expect an impending market crash in the coming few months or some time later in 2020. Back in August, gold rates were already <\/span>rising by 1%<\/span><\/a> due to fears of a prolonged trade war. It\u2019s definitely time to jump on this wagon or be left behind and dragged lower with this absolutely idiotic trade war.\u00a0<\/span><\/p>\n

Right now I\u2019m working with people from the <\/span>Fort Kobbe Vaults<\/span><\/a>\u00a0in Panama, who\u2019re offering some of the best gold storage vault services on the North American continent. Given how you can\u2019t really go to the East or the US to preserve your wealth, you should really consider investing in gold through Fort Kobbe instead of waiting this out.<\/span><\/p>\n

I hope you enjoyed reading: Hong Kong, China and the US\u2014The Threat Of A Global Recession.<\/strong>\u00a0 For more information on Fort Kobbe Depository and storing your precious metals, contact us here<\/a> and we’ll have someone contact you immediately.<\/strong><\/p>\n

I would also like to include a few articles about Gold and Precious Metals that I think you will enjoy reading:<\/strong><\/p>\n

Move Your Gold To Panama \u2013 Today! <\/a><\/strong><\/p>\n

Gold Markets In Hong Kong \u2013 Turbulent Times Ahead <\/a><\/strong><\/p>\n

Documentation Requirements Crossing Borders With Gold & Cash <\/a><\/strong><\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

As the US-China trade war continues and Hong Kong faces increasing political pressure from pro-democratic protesters, many are seriously considering the possibility of a global recession. Economic analysts from HK have already announced that the country has officially entered an economic recession for the first time in the past ten years. With the potential Chinese […]<\/p>\n","protected":false},"author":678,"featured_media":31594,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9408],"tags":[56,17133,258],"yst_prominent_words":[1805,3368,3370,2120,3464,5834,11089,11087,1930,8618,3320,2373,3324,3369,3365,11090,11086,11088,11085,3353],"acf":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2019\/12\/earth-2254769_1280.jpg","_links":{"self":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/29432"}],"collection":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/users\/678"}],"replies":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/comments?post=29432"}],"version-history":[{"count":20,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/29432\/revisions"}],"predecessor-version":[{"id":43448,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/29432\/revisions\/43448"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media\/31594"}],"wp:attachment":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media?parent=29432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/categories?post=29432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/tags?post=29432"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=29432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}