Encouraging Angels: The Clock Is Ticking: The Financial Crisis Is Now Potentially 30 Days Away

Originally posted on Encouraging Angels. -NCS

By Stan Szymanski

On Thursday the worlds’ most in hock (indebted) developer, Evergrande, let its’ interest payment on its dollar denominated bond due March 2022 come and go without the interest payment being made to bond holders. Technically, they are not in default until 30 days past the due date of the payment date of the bond. On the heels of that event, Evergrande has another interest payment due on another dollar denominated bond this coming Wednesday.

Just this past Wednesday CBS News ran a story stating that Evergrande -would- make its interest payment that are due this week. That payment was not made as promised. Companies that know they are circling the drain put out information to keep comforting investors that are worried. They also put out this information to try to keep these same investors from becoming sellers of the wretched security of the potentially bankrupt institution and pushing the price of the security into the dirt.

Although that horse has already left the barn and Evergrande stock and bond prices have already been pummeled, in a CNBC article by Weizhen Tan dated 9/23/21 states that ‘Market sentiment was somewhat soothed when Evergrande assured investors on Wednesday that it would fulfil its interest payment on a mainland-traded, yuan-denominated bond also due Thursday.’  So the company is saying that they -would- pay their yuan denominated interest obligations while letting the dollar denominated bond interest payments ride (for now) through the 30 day grace period.

A Bloomberg Quint (Bloomberg News) article has a slightly different take on the yuan denominated debt service of Evergrande: ‘Evergrande’s onshore property unit said in an exchange filing that an interest payment due Sept. 23 on one of its yuan-denominated bonds “has been resolved via negotiations off the clearing house.” While the comment helped trigger knee-jerk gains in some risky assets, Evergrande didn’t specify how much interest would be paid or when.  That fueled speculation among some analysts that the developer struck a deal with local bondholders to postpone the payment without having to label the move a default.’

The Bloomberg Quint article goes on to say…’Chinese companies typically pay interest on local bonds through a clearing house; when they arrange to pay noteholders directly, it’s often because the companies can’t meet their obligations on time, said Li Kai, Beijing-based founding partner of bond fund Shengao Investment.’…

So what you are being told is that this is not above board and the financial operations of these Chinese companies are at best, extremely opaque.

This company, Evergrande, is 5 to 6 times the size of Lehman Brothers when it collapsed in 2008. The network of banks and companies intertwined in the success or failure of Evergrande in China and around the world one could surmise is much larger as well. A collapse of this enterprise could have such an impact on world markets and could start a cascade of financial destruction because of the growth of debt and entwined derivatives since 2008. When this Thursday came and went with no interest payment the clock started a thirty day countdown. Could be a countdown to bankruptcy, market free fall and perhaps war.

The aisles are getting wider at my local Sams Club and Aldi. The shelves are not stacked as high as they used to be. In Sam’s Club yesterday I was limited to just 3 cases of water. The world, it seems, is heading into a time of shortages and austerity and preparation by purchasing provisions seems prudent . The financial markets, it seems is also heading into a time of shortages and austerity. Shortages of truth. Shortages of solvency corporately and at the level of the personal investor. Austerity in sage advice.

Perhaps the consideration of hard assets like precious metals where there is no counter party risk is warranted (there is risk inherent in all assets; this is not financial advice-consult your own advisor). Perhaps the sage advice on this subject from people like Holter/Sinclair, Mike Maloney, or Steve Quayle would be a help to you.

The Clock Is Ticking. I have written and recorded a song of the same name. You can purchase it by searching iTunes for ‘The Clock Is Ticking by Stan Szymanski. You can perform this same search to stream it on Spotify or just listen here before you consider purchase. You can support our disability ministry Encouraging Angels in our time of need as we have lost much income because I refused to take the vax. To read about that and consider a donation click here.

The Clock Is Ticking and things will not be same. Please plan accordingly.

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Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

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About the Author: NC Scout

NC Scout is the nom de guerre of a former Infantry Scout and Sergeant in one of the Army’s best Reconnaissance Units. He has combat tours in both Iraq and Afghanistan. He teaches a series of courses focusing on small unit skills rarely if ever taught anywhere else in the prepping and survival field, including his RTO Course which focuses on small unit communications. In his free time he is an avid hunter, bushcrafter, writer, long range shooter, prepper, amateur radio operator and Libertarian activist. He can be contacted at [email protected] or via his blog at brushbeater.wordpress.com .

12 Comments

  1. Red beard September 29, 2021 at 09:05

    Couldnt the chinese ask for the 2 trillion something dollars that the US is debted to them? I mean, i think that could he considered currency war since fedres would have to print that money…
    Since our own .gov has until oct 18th to pass that 3.5 trillion spending bill. What if they dont and EBT cards do not get refilled? I think this is a double front powder keg
    Red beard

    • NC Scout September 29, 2021 at 09:24

      Agreed 100%

    • boss21 September 29, 2021 at 10:37

      They already have the trillions in bonds. They would have to sell them to get the ‘money’. Worse than that, they used them as ‘collateral’ for their BRI and African projects.
      Globalization has tied all the climbers together on the cliff face with no anchor. Should be fine. Russia having been ejected from this club of fools is in the strongest position ever.

      • NC Scout September 29, 2021 at 10:50

        Putin was wise to the game, as chess players normally are. Russians play chess, we play video games.

        • boss21 September 29, 2021 at 11:32

          Yes indeed. I made it my business to spend time there a decade ago. Everything the so called Libertarians and ‘law and order’ types slobber over was being done . Officials up to governors and even ministers were being arrested. Even COPS style TV shows depicting the anti- corruption jihad. Orthodox revival didn’t hurt either. They still have massive problems but at least they know that.
          That starts happening here or we are doomed to a messy resolution, but we will have a resolution.

        • rto-jerry September 30, 2021 at 06:23

          Masters of the chess board to the point of convincing the west of “winning the cold war”.

      • Johnny Paratrooper September 29, 2021 at 13:19

        Russia hasn’t been ejected from anything.
        They are the backup supplies of energy and resources in case we ever resist or put an embargo on any of the usual suspects in this great game.
        Read “The 100 Year Marathon” by Michael Pillsbury if you have not yet.
        He has entire chapters dedicated to how Soviet Agents in our government and Russian diplomats played a beautiful game with China to trick us out of trillions in technology, weapons, aerospace, and rights to trade markets and trade routes.
        The collapse of the USSR was a false surrender.
        Plain and Simple.
        Russia trashes one half of Syria, and We trash the other.
        Then Turkey, Iran, Israel, China, Russia, and Pakistan get the contracts to rebuild Syria.
        Built to 5G Smart City Specifications and Standards.
        Meanwhile, every bit of all of this BS (As well as the stuff I mentioned in a previous comment higher up) happened right in the middle of the so called “Cold War” which probably killed 150 million people. All while Africa, South and Central America, and Southeast Asia were falling apart and being torn to pieces by China and Russia.
        And we sent 15-20 million jobs out of the country since the 1970’s.
        To our so called friends like Canada, Mexico, Germany, France, the U.K., and India…

    • Johnny Paratrooper September 29, 2021 at 13:11

      Have you read Stealth War by BG Robert Spalding?
      China is allowed to take out loans from U.S. and European Banks.
      Our banks know damn well they will never see that money again.
      And then we are stuck with the bill. Which they folding into general interest and hit us with the surcharges.
      Those mega, modern ghost cities in China, totaling 125 and which could house nearly 165 million American families tomorrow, were built by stealing money from our banks and our corporate 401Ks and other programs.
      Also, every single time the Republicans and Democrats fight over the budget they argue over 200 million here or 150 million there and then finally decide on 185 million…
      Every single time. Without exception.
      They never wanted 200 million or 150 million. That is just a dog and pony show; Because the G-18 rated accountants knew the entire time they needed 185 million.

  2. boss21 September 29, 2021 at 14:47

    Smedley Butler said all this a century ago only better. Nothing was done. Modern Russia is different in that they have coherent national policy and a General Staff who follow orders. Everything else is bullshit.
    Any resources extracted from Russia are and will be paid for – in blood or treasure. That becomes our posture or we become a giant UK. All this geo-political soap-opera shit is a distraction from real work.

  3. Him September 29, 2021 at 19:52

    All of those people being fired for no vax, are our new allies. They’re pissed. Don’t waste this.

    • boss21 September 29, 2021 at 20:21

      The fools are doing years worth of vetting for us.

  4. Michael Ponti September 30, 2021 at 01:38

    Read Golitsyn’s books “New lies for old”, and “The Perestyuka deception”

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