China is one of the biggest suppliers of goods to the outside world. China has made economic deals with other countries and when you are in an economic bubble many countries reel back on the amount of outside deals or plans or trading that they have with other countries such as the US.
Yes, a real estate bubble in China is a great threat to the world economy. China holds billions of dollars in U.S. debt. If a real estate bubble in China popped, they may call in their U.S. debts. The U.S. would have rapidly increase printing money, thus causing large inflation and a devaluation to the U.S. Dollar.
Mr. Wang is regarded as the richest person in China. He's warned of a real estate crisis and explained why he's concerned. If there's a crisis in China, it does pose a threat to the world economy because China is a huge investor in other nations. China has affected the world market in terms of supply of goods and its economy is very tightly linked to that of the US.
Remember the 2008 recession? Where the housing market in the United States went completely under? That could happen to China, given the warnings that a Chinese billionaire has issued. The Chinese economy is enormous. If its housing bubble bursts, it will take the rest of the world's economy down with it.
What is necessary is to abolish these grotesque casinos that decide the fates of millions altogether and replace capitalist anarchy with a rational society based on a planned economy. They are not intended to remove economic power from the hands of the wealthy parasites who constitute a monstrous burden on society and an obstacle in the path of progress. On the contrary, they represent an attempt to protect the interest of these parasites by giving them vast subsidies, paid for out of the pockets of the working class and the middle class.
The world economy is already a house of cards in it somehow escaped your attention during the last economic collapse. The wealthiest nation in the world and largest exporter is still the US, yet, our children are now born into debt that won't be paid off in their lifetime because all the wealth is going to the top. The banks and Wall Street are playing fast and loose with the facts and little has changed. The banks are still routinely defrauding people to the tune of hundreds of millions at a shot and, ironically, being forced to sign papers saying they will never do it again, getting slaps on the wrist, and going out and doing it again.
Something like 90% of the world economy is estimated to be pure speculation such as stock market. Everyone is simply gambling on what's the next big money maker, then jumping ship as soon as they think the truth will be exposed or they see something better. Yet, if you have ten bucks in your pocket and no debts you are richer than a third of the US.
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