Topic: China real estate crisis: Buy a house and get a gold bar! No Bitcoin unf! (Read 644 times)

Sometimes he's right. No one is always correct.
China also muddles its credit worthiness https://archive.ph/lS46V
Original: https://www.bloomberg.com/news/articles/2024-09-12/china-detains-investment-bankers-takes-passports-in-graft-sweep

Franky:
- you can't buy land in China, all land in China is owned by the state
- foreigners can buy a property in China only after residing in the said province (with only two exceptions, Guangxi and Inner Mongolia which are autonomous) for 12 months
- you are limited to one property tied to the prefecture-level where your residence permit is issued
- you can't rent your property if you're not a Chinese resident, you're breaking the law

So if you think China has ever tried to encourage foreigners to buy real estate you're again mistaken, as usual!

the over supply was a itchy trigger finger plan to build more homes in anticipation of couples having more children so needing more then a 2 bedroom home(china changed its 1 child policy to 2 and then later 2 children to 3..)
however those people whom are of child bearing age are already indoctrinated into thinking 1 child is healthy for the family and society and so dont push out more kids to need to then upgrade to a bigger house/apartment

so it then becomes the anticipation of the next generation that are taught that 2-3 kids are fine and it will be those (now late teens) that will couple up and settle down and have 2-3 kids to fill the new apartments. however that is not today.

so they simply built too soon not realising their 1 child policy indoctrination of the last generation would work so well that even those with one child now still wont want 2-3 kids.

there was alot of other economics too about china hoping the middle east(UAE) would buy these properties and then rent/lease them out as landlords to these anticipated couples wanting to start families.. but even that money didnt come through because the middle east ran their own numbers and timelines and seen china built too soon

there eventually will be demand for the supply, its just a few too many years too soon. UAE wont want funds tied up in property for 3-10 years when the property market works best on a same year flip in most cases (unless the property exists in a tourist/high employment zone(which those properties are not)) when inflation is low compared to other countries, they only want to buy and sit on empty properties long term when inflation is high

It's really not reasonable to do marketing and expect everything to change. Reality is that there is a limited amount of people with money that can buy a house, most people in China do not have enough money to buy a house, and the ones who can already did, so when these companies made so much more than what was needed or even what was being affordable, they bankrupted, gold bar doesn't make sense in that marketing sense.

Maybe some rich people could buy in bulk, surely there are people who can buy like a thousand houses and rent them out for income, but they already did as much as they want, so not many houses are being sold.

Construction should have been slower, they like fast works, but this wasn't something they should have been fast on and that is why it doesn't feel like a good idea. They will not be saved easily, they just have to wait with the current situation, let the country grow and they will end up getting a greater result eventually when things are better.

This is just one manifestation of the global crisis of the Chinese economy.... One of the reasons is the total subsidization of the industry, its overheating, and subsequent decline. And this is against the background of the loss of sales markets (I mean “expensive”, solvent markets), as well as the destruction of economic ties with the Western world and markets accordingly. Which for an export-oriented economy is almost synonymous with death.... But while the Chinese government is trying to pretend that there are no problems, it looks more and more comical.

As for gold and its reserves in China, this is also a story with many unknowns. Officially - China has been the largest buyer of gold on the world market since 2020. But... data on reserves are classified, no one has access to China's gold reserves (as well as other countries), and knowing the historical facts about information manipulations of the Chinese government to create a positive picture, we can not be sure that the declared reserves correspond to the real ones. And it is not clear whether it is gold or tungsten in a gold shell....

China's inflation rate is between 0.3% and 0.6% on a yoy basis.
You're mistaken the problem here, it's not that houses are not affordable or prices are up, it's that Chinese people don't want to buy anymore because of oversupply, a possible deflation on the horizon, the attractivity of an investment going down, migration policies and a change in lifestyle where the mandatory house before getting married is no more needed since they don't marry at all, with a decline of over 10% over pre covid numbers.
And China needs real estate prices to go up since it's a huge chunk of their GDP and income!

China got old before getting rich, they don't have the money for grandiose investments and they don't have the need for an oversupply of things that nobody is interested in.

Yeah, it's for sure going to be back but we don't know when, and even them, they don't know when it will.

They're a communist state and that's why they can do anything. I think it was also in China where deposits of their own people have been frozen due to the unforeseen turmoil of their economy. I wonder what's really the deal there if they're having a bad economy but in some "propaganda" videos say that they're doing well and have a lot of jobs even for the new graduates that can cater majority of them.

We can't expect the results over time and if we try to keep things via shortcuts it won't hang there for too long will obviously backfire at them.

But they are not really capitalist not democracy so they can do anything as they wish and no one will be asking questions about that but in other places things will get real dirty that's why we better look for the long term solutions which may be less harmful than instant solution.

Gone are the days when even minimum wagers could afford to buy a house and pay a mortgage without having any financial pressure. Today, because of inflation and other factors combined, many are choosing not to reach their dream houses anymore. Cost of necessities are increasing but wages aren't, thanks to capitalism.

It's going to take time for that when the signs have been obvious from the fall of Evergrande.

The real estate market has always been up and down and now with the rapidly increasing inflation people can't afford to buy the house like they used to be because the salary isn't appreciated along with the inflation that created imbalance in the system that will take time to be corrected.

Maybe the Chinese government needs to work on their interest rates for better solution than using the perky ways which obviously not effective in my opinion.

Thanks for the share up bud. I wasnt expecting that there are indeed abandoned projects something huge scale as this which turned out to be a ghost town. I have read up everything on the link
given or provided above on which it is really that truly devastating into its developers. There are indeed tons of factors on which it could affect out like affordability plus into those times
where Covid is still in existence on which this could really be that resulting into this kind of outcome or result. You have definitely said the right thing that about in contrast with their mindset on having that more
than on what you do need will really be having that also its cons too. Not all the time that real estate business would turn out to be a success on which majorities mindset will really be something like this.
Risks is always there at the side and if you wont really be having those kind of good plans on where you do make those properties would be located or whatever factors still needed then
you would really be still suffering on the same outcome or result.

China banned and unbanned Bitcoin multiple times so I am not sure the exact legality status at the moment but based on the Google search it was banned in 2024 Q1 so even the real estate agents wants they can do it and they don't have a much option cause we are talking about China not some Democracy.

Here in India too the real estate market has been up and down and since COVID the market is facing decline though on average scale but it's something happening due to the evolution of technology now people can be more scattered all over the country instead of a certain town for jobs and everything.

I think it's just about the fact that some people prefer this one and I have no idea why they are doing it. They think it's a way to get away from trouble but the reality is that it is not going to be that easy to handle any of this. We should be considering this as something that is a bad investment considering as long as you keep getting more real estate you risking it being a bigger risk, diversification is important if you could buy a few and still have investment at crypto that would be great but if you do not then you are going to be fine.

I think the best thing would be investing into a few different things and we could make a lot of money with a lot of diversification, if you want to invest into it then you could do something that will take a while and we could be doing something a lot better. I believe that the best thing to do right now would be just focusing on what you are going to do a lot better and can't be really taking a risk.

So it's about some of their philosophy of having more than what you really need - but I still don't understand that at some point CP didn't see the problem and decided that such a practice had to be stopped because otherwise what's happening now will happen. Maybe the problem is in the Communist Party of China, because I know how communism works, I can only say that they are masters of pushing problems under the carpet, of course until there is no more room under the carpet and everything starts to come out.

I take a look at their ghost towns and see that their peasants have perhaps a unique opportunity, fields between luxurious villas and livestock that live to a high standard




Source

China is overbuilding, it's hard for us to picture this as we have a completely different mentality.
Maybe someone from Romania could explain this better as they have the same thing about buying and owning a house, in China with limited opportunities and a different midnset a house is a must, so a lot try to buy one or have them as an investment.

So you have continuous building because there was demand to a point where clearly demand is no longer there after enormous growth and everyone is wondering what the hell we sold 100 million in the last 10 years why can't we sell another 10 million per year now? They didn't realize there would be oversaturation and that most who afforded one had already contracted on, they thought everyone would be willing to invest, well, you can't have every family owning 3 houses as an investment cause you will never have 3 billion renters, right, especially in a country where everyone wants to buy not to rent from a landlord!

They could be indeed 1.5 billion, they've built for 300 million extra! And still going because if they stop building companies with tens of billions and millions of workers go bankrupt and unemployed!

Where does their real estate market situation actually come from? The fact is that they built massively and obviously without making any meaningful assessments in terms of the number of built apartments in relation to the number of people who will need them - but for me the main question here is "where are all those Chinese people who don't buy new apartments"?

I remember that at their last population census, there was a Chinese (probably an expert in demography) who stated that China actually has about 1.2 billion people, not about 1.5 as is usually said officially. The one-child policy, which existed for quite a long time, was obviously successful, but can we say that it may be coming back to them in a negative sense?

Revisiting this topic
https://www.scmp.com/business/china-business/article/3278518/chinas-august-home-prices-drop-fastest-pace-9-years-small-cities-bear-brunt


At the same time Fitch has downgraded Vanke one of the largest real estate still unaffected from the trio to BB-, 180 billion in liabilities, at the same time China has offered 300 billion to date to help home sales, relaxing policies in some cities for second homes and despite that prices keep going down even in Beijing and Shenzhen.

Pretty soon apartments will no longer have a gift attached but will be the side gift in dealings if this continues.
 

If this happens in my country, it is certain that it will develop quite a lot because it is in line with the understanding of the ancients about gold as one of the most promising investments. By buying a house, they will also get gold so that in one hit they can get two benefits at once, although sometimes the terms and conditions definitely apply. The only thing I think this can be manipulated is because most people have difficulty recognizing real gold, especially when faced with ordinary rural communities. It could be that the amount will be limited and in the future the gold will not be enough to be given as a gift when people there are competing to buy a house.

Is it possible that this is a hatred of bitcoin in particular or crypto in general because there is no reason that is much more profitable to buy a house given gold to buyers. Of course we see the Chinese government still firmly prohibiting crypto and they are trying to do something to prevent it. Although we don't really know how the government there is, if we follow it on various channels or news, they are quite authoritarian in controlling their people. Am I wrong?

Still going on, prices are collapsing as much as the government is letting them go down
https://www.reuters.com/world/china/china-june-new-home-prices-fall-fastest-pace-9-years-2024-07-15/

They are slowly out of options, they've lifted all restrictions, construction has slowed down, and yet demand is not there.
This comes from a paper that is basically the Chinese version of russia today:
https://www.scmp.com/business/china-business/article/3259078/china-property-beijing-needs-us21-trillion-revive-sector-rescue-plans-have-not-been-good-enough
if they acknowledge 2 trillion is needed to help the sector how much worse can it?


 

The article on the Guardian and the start of the discussion is from a year ago, so that's not news. Is that still going on, or why has it resurfaced on the forum? It looks like the issue with the property crisis is still relevant, but China is employing new strategies, such as asking local governments to buy unsold houses, and then transform them into affordable housing options. So far, the attempts to rescue the real estate market haven't been successful (and that includes the gold bars measures). I don't think replacing gold with BTC would've made a difference, but this new policy is quite different, and we'll see if it works.

its to keep the market comps at a certain rate

if they dropped an average house price from $200 to $160. thats a 20% down market. meaning it hits the stats about CPI and inflation rate and other measures. they cant and dont want to cause a market crash based on trying to sell a bunch of empty homes which then impact on the market of already filled/occupied homes
so by giving them a gold bar from government as a "back hander" gratuity.. the sale of a $200k house is market off at the market rate of $200k not $160k.. the banks get paid $40k from the government to buy the gold from banks. and later the bank collects $60k of interest from the home buyer so the banks also profit $100k in the deal

its the same at the other end. why do banks prefer people to mortgage a house instead of pay in full (as with credit lines with other produce) its because if they can sell a product at $200 but it actually cost the person $260 years later.. the person then wont sell it for less than $260 years later to break even.. thus cause the markets to show "growth" by having the markets move forward instead of backward
(30% over 15 years is a 2% inflation rate on houses)

I don't know the details of that but if you look at the Chinese government which is not friendly to bitcoin, they will definitely do everything they can to limit it. Why would a program like this come up because they are very concerned and the lack of checking details that the voucher has changed hands is a form of cover up for the public that they are intentionally creating. If I'm not mistaken!!

Always be prepared and I believe this is a scenario because if you look at China they are always very against anything that could potentially break the rules. Because if the gold bars have physical we might be able to detect it and that's not an ideal scenario for them to do.

I wonder why there needs to be a gold bar giveaway. Why can't they just give 20% discount? That's the equivalent of the value of the gold given away. If sales are poor, does the gold bar entice buyers? I don't think so. They can buy that gold anyway if they need it. If they don't, then they're forced to buy gold, which they don't need at all, by buying a house. A cheaper price attracts buyers more.

China has an oversupply of residential buildings that they are left with no choice but to destroy some of them, many unfinished. Ghost towns are built within high-rise compounds. Real estate companies went bankrupt. The prices of houses remain high though.

I'd rather live in a tiny house built on a small plot of land than in a poorly-built high-rise structure using substandard materials. Unfortunately, people in China can't privately own pieces of land that they're forced to live in buildings that may collapse anytime.

the whole real estate market/mortgage deals is a shambles of creativity

person sees a house price of say $200k.. but actually pays $260k(mortgage interest) effectively at the end
so the price is false

then the house is only actually worth $160k because the purchase is realistically for a $160k house+ $40k gold bar
so the price is false

a $160k house costing the person $260k but they get a gold bar from government whilst the banks pocket $100k profit

---

in the UK however the government dont give the house buyer a gold bar. instead they pay the home builders the equivalent of more then $40k gold bar to build "first time buyers" homes on the cheap, where by usually developers build smaller homes on smaller plots of land using cheaper material but price it at a rate equivalent to a normal homes superior materials. thus the developers pocket the profits

I take it this is about the not-so-successful attempt to save Evergrande, which is dragging China's entire economy down ?
An interesting but pointless attempt ! China's economy has become a "bubble", and there is no way out of the situation except for tough measures to reorganize the economy. And moreover, confrontation with the West, at the same moment, makes the situation even worse. It's like treating a systemic disease and at the same time going on a bender, taking heavy drugs, and doing other extremely unhelpful actions.

If they would allow this their whole real estate market would come crashing down and with it the entire fake GDP, and everyone knows that if they miss and can't fake anymore their 50-year-long plan of continuous growth they are all sent to the execution platoon!
They are in so much trouble they can't afford to budge on inch

Just look at the chronology, and this comes from SCMP, which is basically the CCP paper for English propaganda:

China Evergrande downplays impact of staff arrests in Shenzhen, as property management unit warns on debts
one week later
China Evergrande says founder Hui Ka-yan under ‘mandatory measures’ for alleged crimes, amid stock trading halt in Hong Kong

they have companies not able to pay debts, prices falling down making those debts unpayable, and on top of that:

Even 1.4 billion people can’t fill all of China’s vacant homes, ex-official admits

This is a bit like those companies that failed around here.
They poured a ton of cash they got in debt for into coins, the market crash come, their stock went to pennies, the debt skyrocketed, they had to sell the shitcoins basically sealing their fate, and still had no money to pay the debt thus triggering the bankruptcy of those that lent them money also.

And we have some still arguing about debts ratios of 100% when Chinese debts are at 300% since they have province debts, local government debts, central government debt, and country debt, they even stopped realizing that data after Covid since it went completely off track:
https://www.scmp.com/economy/china-economy/article/3018991/chinas-total-debt-rises-over-300-cent-gdp-beijing-loosens.



Imagine you have built 1 billion houses that nobody lives in and which are on almost every balance sheet at a certain value and this gets sliced in half, it would turn into a flood of bankruptcies since thousands of companies will see their assets turn worthless.
Think LUNA! 


Even without allowing the companies are fall one after the other, Evergrande, Fantasia, and Country Garden, what do you think will happen if they set the price free? 

Indeed, Gold has a special place in human culture and finance for thousands of years, and its role extends beyond store of value, it is also used for manufacturing  electrical components and parts, particularly in electronic industry. Beyond its industrial utility. traditionally, it is considered symbol of wealth, a safe heaven and jewelry.

It is not surprising , if some Chinese real estate companies are using Gold as means to reward their customers, an elegant approach to marketing and promotion.

It is funny how people are attacking China .... when the US economy are bending the knee before them. China are lately buying the most Gold in the world.... where  ==> "The United States boasts both the world's biggest national debt in terms of dollar amount and its largest economy, which resolves to a debt-to GDP ratio of approximately 128.13%. The United States' government's spending exceeds its income most years, and the US has not had a budget surplus since 2001" Source : https://worldpopulationreview.com/country-rankings/countries-by-national-debt

I am not a "Goldbug" and it has been like that for many years. Try to get an independent audit on the Gold that are stored in Fort Knox for example and you will be amazed that it has not been physically inspected for many years. (It can be Gold plated Tungsten or Lead bars for what we know) 

In any way.... countries like China and Russia and India are buying Gold like crazy... while other countries are collecting debt. 

I think we are surrounded by ambiguous investors who can’t differentiate between decentralised asset and centralised asset. That’s making unforeseen roadblocks in accepting Bitcoin throughout the system. The only thing that’s making them invest into asset like gold is its physical presence and their attachment with it as they can hold it. Now they don’t think about the issues that you have very well portrayed in OP, about its fairness, reality checks etc. Why would they? They see the yellow shiny bar thats enough for them to work with. However in case of Bitcoin everything is opposite and there is no way to verify things even physically. Sadly no yellow shiny bar there. China is master of crooked science, let’s not get into it. Lolz

What a load of bollocks. The result of not letting prices regulate themselves by pure supply and demand and trying to manipulate them for political expediency. This rubbish has been known not to work since Diocletian's edict of maximum prices, which only served to stop people from producing goods or selling them on the black market, bypassing the edict. With this we have something similar. I don't let you lower the price but in order to sell the house you give away something that is 20% of the value, which, as much as the Chinese government doesn't want it, is a de facto 20% price reduction.

It doesn't really make sense to limit the price reduction, they are finding ways. Instead of spending 100k on a house and getting 20k back, you spend 80k and it would be the same thing, but because it is not allowed to drop the prices they are doing something like this. It still doesn't make sense though, because it is not the way it should be.

Let the market be whatever it is until people buy the houses, if the construction company has to make a loss, they will have to make a loss. The overestimation on how much people would pay for houses was the real trouble, China kept on building, not realizing that all the people who can buy a house, already bought it, and they do not need more new places to be built.

You bring up an interesting point regarding the sale of items like Bitcoin voucher codes or even added bonuses like Pokémon cards (at collector pricing) in transactions. It can indeed be challenging to assess the value and authenticity of such items in a market that may lack scrutiny. Your concern about potential tax evasion is valid, as these additional items could potentially be used to manipulate the perceived value of a transaction.

In essence, it's essential to have transparency and accountability in any market to maintain trust and ensure fair transactions. Whether this situation could be a potential usage scenario or not depends on how it's regulated and monitored within the market. Your caution is well-founded, and it highlights the need for vigilance in any trading environment.

I see that China, with its cash reserves, is able to intervene and solve the crisis of real estate developers, but I see the slowdown that is happening as an attempt to "pinch the ears" of these companies and make them respond to government requests in the future, but who is stupid who presented the idea of offering a kilogram of gold bars to entice people to buy their apartments? The idea is fundamentally wrong and can be understood if it was an investment fund that buys apartments and gives you an additional return in gold or dollars.

Such ideas make the buyer refrain from buying, as he believes that he will get the apartment at a cheaper price in the future, so why buy it now?
Bitcoin will not be an alternative at the present time, but for the user who knows cryptocurrencies, Bitcoin is much better than online gold buying and selling services.

Yeah I read an article about the Evergrande situation and it’s bad. Basically they didn’t have issues selling real estate in the large cities but the issues came when they started building these towers in smaller cities and nobody wanted to buy these apartments. And they needed the money from sales to pay off debts.

It’s crazy that the government allowed this to happen. They can try and give you gold but eventually they are going to be giving people 50% worth of gold for the value of the entire apartment because prices will start to tank that hard. Don’t think there is an easy way out of this.

The government, especially as tyrannical as the Chinese one, will find a way how to bring Biticoin activity to the minimum if millions of people will start using it in a way they don't like. They will tighten the financial monitoring of bank accounts and make banks investigate the source of incoming large transactions of their clients. So selling Bitcoin online would become quite hard. And they can go after physical bitcoin to cash exchangers by raiding them with police. It won't stop 100% of Bitcoin use, by likely over 90% of people would reconsider using Bitcoin.

I wouldn't buy a property in china even if they were offering me gold bars with it.
First of all, bars filled with tungsten are a common thing nowadays as it fools the scales (similar density).


Here's a fake gold coin from reddit.

Then there's a problem of quality. Chinese buildings are nowadays made cheap. In the link you can see some pictures of Chinese buildings made of foam.
http://hongwrong.com/foamed-plastic-found-as-construction-material-for-new-housing-in-central-china/

And here's a video explaining the problem.
https://www.youtube.com/watch?app=desktop&v=hBwcw7pmsBE



True, India is one of those countries. They traditionally give gold to the bride and groom at weddings. There will always be a market for gold there, which also makes gold easy to sell in these countries. IMuslims also have a knack for gold as far as I know.

In the market, such deceptions do not work, because the chena in the market is regulated by supply and demand. Banks and the government can support developers and offer very favorable conditions for the purchase of new housing, but this will depreciate the market for subsequent sales, because it will always be more profitable to buy a new apartment.

Is that the reason behind China's increased gold import? Haha, kidding. By the way I wonder, are they going to limit developers to build new houses? Because lowering of supply will increase the price and they won't have to make a shit show like this one.
Overall, housing prices are artificially inflated worldwide because it's an easy money to buy/sell and/or rent. People are waiting months to sell their apartment or to rent commercial properties and still don't decrease prices, this really makes me to think that real estate is artificially kept inflated. But I don't understand why does China want to keep it inflated? What's wrong with decreasing housing prices if there is not a big demand? I don't understand what's the point of banning developers from cutting prices?

And to be honest, I don't completely understand what's the point of your post @stompix? Why don't they offer Bitcoin over gold? Or it would be better if they offered bitcoin over gold? I think this is done on purpose, they could offer a sportscar or something like that instead of gold that will 80% be fake. A lot of people on Reddit say that Chinese real estate developers are very shady. China remains a mystery for me, I don't really understand what's the life there. I have heard good from some people who have been there but online everyone talks about how terrible and full of scammers it is.

Chaos is perfect when you want to hide the really dangerous stuff, it's better to leave a few things in the open to make people believe that's the worst thing rather than trying to get everything in order and failing majestically.
 

Everyone does so, if you're going to sell a gold in most asian golds shops prepare to be asked to have it cut in a few random points, nobody is buying gold by the weight volume ratio anymore, with the advance in technology you can right now cast the fake gold bars in less than 0.1% deviance which would fool almost everyone.


It's actually the same thing, nobody is expecting you to keep that bar or the car, you can resell them the next day to get your money back, it's not a nonrefundable gift or something like that. Besides, the value of the car is based on how much do they sell that apartment and how much are they forced to declare as value
- the minimum fixed price is 500 000 and the real market value is 400 000 they will probably gift you a mercedes
- the minimum fixed price is 100 000 and the real value is 90 000 then you are going to get a used vw golf!


It's not only China, there are numerous countries in which gold is seen differently, both as a showcase of wealth, some safe way to keep your money hidden, a hedge against inflation, in some cases the distrust is so big they will embrace gold just because of that. Unfortunately and this is the second thing in this topic, Bitcoin seems quite unable to replicate this trust gold has on a larger scale, more are interested in the gains in value than in conserving that value over long periods of time or even security. But I guess you can't compete with things that have been around for thousands of years.

What is China's obsession with gold bars? About thirteen years ago some Chinese were swapping physical notes for gold bars, the three years ago, there was a scandal where a Chinese company used fake gold bars to obtain loan. Then 3 days ago China invest in almost 8k tons of gold.

Well, as for real estate in China, they are struggling to keep their heads up and this is the reason for the gold. Well it is a good one compared to offering a car. But then what is the value of the gold?

I am one of not so few people who expect housing market (bubble) to crash, people has been hoarding real-estate property too long, expecting an unreasonably high profit, while the most potential buyer --the younger generation-- does not have enough money to buy those real-estate


It's not a new MO by real-estate dealer, I have seen this since at least 3-4 years ago, this Chinese developer is actually a bit better than my developer, they are offering a car. Not only the value of the car is immediately decreased up to 30% after it got into the consumer hand, but they also give the cheapest car they can find on the market.

I do not have any authentic answer to your query, but saying that they are giving a gold bar as a gift and also saying they are doing that to fake the market value as per your own example. I think this gold bar is no longer a gift; instead, people are paying for it too.

But I am truly shocked to see how deflation could also shake the base of a powerful country. I have seen the world facing severe conditions in inflation but did not realize any situation in which deflation could make such an impact, and the strategy to fake the price of real estate in China is really good.

I mean, to avoid a more deflationary effect and to attract people, such a strategy is good. I am having such experiences just now (such experiences mean deflation impacts).

To be honest, I do no know how a country which is allegedly controlled by a communist party would allow such chaos to continue to go on. 
One must also keep in mind the quality of the building materials of those projects, there are already many videos on Youtube pointing out how entire building have to be evacuated because the structure gets too weak through time.

It would seem that the building boom in China which is kept artificially, does not respond to the interest of the central government to give shelter to all the chinese people but selfish interest of a few private entities.

There are ways to detect counterfeit gold bars. To be honest, If I was to accept a deal like this one, I would gladly to go for destructive methods of verification.
 

The world just keeps giving, after my previous topic about paying your debts with monkeys we go to the next funny one, new home gold bar gifts!

Yup sadly, it's gold, not Bitcoin, not even Dogecoin or a 2 by 2 pixels NFT!
And maybe it's even worse than that since gold can't be checked by a decentralized network for authenticity evey time, it might be something like this:



^ NOT a Toblerone !

The article is a bit old but it's the only one out of a few tens I've read that covers every step.
https://www.theguardian.com/world/2023/jun/12/gold-bars-used-to-lure-chinese-homebuyers-amid-market-slowdown

TLDR:

So, in the long version, how and why is this happening:

- Economic slowdown, deflation on the horizon housing sales have crashed
- The government can't allow the prices to go down that much because it will trigger something worse than 2008, with the main government and regional ones being in debt close to 300% which will be a disaster
- Since house estate developers are unable to cut fixed prices, they offer you a deal, giving you the house cheaper in reality but at the same time keeping the price up techically

So you buy 2 million yuan and you get a 400 000 yuan gold bar, so the price of the house stays at 2 million but you only pay in reality 1 600 000!

Now, we all know the Bitcoin situation in China is far than ideal, very far, like over the hills and far away, but could this be some breakthrough momentum when you're not allowed to pay what's worth but what's being said it's worth?

Let's look at it:
- Most are afraid that the bar will be fake, or of lower purity, total advantage bitcoin.
- Gold is harder to buy and once controls are in place no way near a million people a year will be able to get their bars
- Not that I'm advocating this but, it's a bit easier to deal with some accounting books once you deal with coins,I mean you can say that you gifted him 1 Btc and then send another 1 btc to some address. Again I'm not defending or advocating for tax evasion!
- The government doesn't like the gift loophole but doesn't like Bitcoin either so you got your hands already, but it will like a bit more since they are interested more in gold than in coins
- The developers won't have to pay one hundred armed guards to keep safe 1 ton of gold will the clients be afraid to leave the agency carrying a bar in their pocket, it can be done online

But more importantly, the seller can just say it's a worthless Bitcoin voucher code, it doesn't affect the price at all and besides, it's almost impossible to check if the voucher has changed owners. If I sell you a house and gift you 100 Pokemon cards I doubt pretty much someone will come to appraise it. Now that I think twice about this I'm really calling for tax evasion here  

So, do we have a potential usage scenario or I'm grasping at straws in a turd market full of bear dumps?