China’s Evergrande veers toward collapse, unpaid debts spark protests

- contacted

- discussed scope of work, grandiose, with big budget

- Evergrande people pressured the company to start doing work before the contract was executed by the big wigs

- Evergrande people pressured the company for deliverables before the contract was executed by the big wigs

- a few deliverable delivered (at this point we're a couple of months in)

- still no contract, still no payment

- Evergrande people pressured the company for more deliverables before the contract was executed by the big wigs

- company delivers a few more deliverables, still no contract and still no money

- company stops working and demands payment and contract

- a few weeks later (we're not 4-5 months in) payment arrives

- Evergrande people pressured the company for more deliverables before the contract was executed by the big wigs

- company delivers some more deliverables, at this point Evergrande has good executable deliverables for their project

- Evergrande ghosts the company, no contract, no payment for the additional services since the one and only payment

Damage approx $150,000 (unpaid work)

Life goes on

- China's recent economic growth was half due to real estate, a substantial part which was speculation

- the "real estate developers" usually just take the deposits and sometimes build a property, but often not (a ponzi scheme)

- it only takes a small amount of embezzlement, which is rife, for the house of cards to come down. Where's the money? In US and Canada Wsst Coast real estate, of course.

- this exposes the ponzi practice for most such companies

- which means China's real economic growth is somewhere between half to 2/3 of what has been reported for 2 decades

- this threatens investment in China as the story is adjusted down.

- in addition, China has stopped capital outflows since 2016, so foreign investment is one-way. (if you're Volkswagen and you invested in building a factory in China, you got played.)