Are world leaders ignoring an impending financial pandemic?

 Are world leaders ignoring an impending financial pandemic?

What really matters last week before we left for washington dc we told you about an impending financial disaster we showed you pictures of chinese citizens protesting at the corporate headquarters of evergrand the biggest player in chinese real estate also the world's most indebted real estate company at the moment evergrand owes more than 300 billion dollars 300 billion.

It is already missing its loan payments some protesters have tried to commit suicide just to make a point it's a serious crisis a collapse of evergrand could start a financial pandemic been reporting on this turns out the problem is bigger than what we initially saw the united states too is staring at defaults and i'm not talking about a company here i'm talking about the government.

The government of the united states of america could default on its own debts american citizens could run out of cash and if that happens scenes like the ones we witnessed from china could play out in the u.s too such a situation will be a financial armageddon.

What are world leaders doing about it..what are chinese and american leaders doing about it not very much so far more than 100 leaders have gathered in new york but they have said nothing about the debt troubles of the us and china and how they will impact the rest of the world are they are they ignoring an impending global financial crisis our next report tells you why the world needs to brace for this yes on tuesday xi jinping had a message for world leaders the chinese president wants them to focus on post-pandemic recovery.

We must revitalize the economy and pursue more robust greener and more balanced global development development holds the key to people's well-being facing the severe shocks of kovic 19 we need to work together to steer global development towards a new stage of balanced coordinated and inclusive growth the global economy is still reeling from the pandemic that began in china now the chinese could unleash another pandemic a financial one something that xi jinping did not talk about at the united nations general assembly china's biggest real estate player ever grand is a ticking time bomb.

It owes more than 300 billion dollars to various creditors money it cannot pay back on monday evergrand missed interest payments to two large banks by thursday the company has payments worth 120 million dollars due evergrand has struck a deal to make one of these payments but that doesn't even begin to solve the crisis china's evergrand has been compared to lehman brothers the company that was audited by ernst and young this is theoffice of ernst young they had to settle for 10 million dollars  for helping lehman brothers dupe investors that was the charge against them now china has ever evergreen possibly faces the same fate all the chinese state media say that this is a company that is too big to fail we know better than to put our trust in the chinese basket.

The question is what are world leaders going to do about it.

This is an impending financial pandemic that may start in china and spread to the rest of the world as world leaders gather here this week for the united nations general assembly are they going to come up with a plan to deal with this or are they going to brush it under the carpet the collapse of evergrand will have a ripple effect on the rest of the world the company has borrowed money from practically everyone its creditors range from banks to suppliers to average chinese citizens evergrand took cash deposits from more than a million home buyers they yet to deliver these apartments the company borrowed from tens of thousands of its own employees even foreign creditors have a sizable exposure evergrant owes them 20 billion dollars and that may just be the tip of the iceberg.

The chinese government tends to try to hide these problems under a sea of liquidity and the level of transparency and corporate governance is quite limited relative to other economies so it's very difficult for us to know the true extent of the financial whole of both immigrant and the property developer sector if they decide to bail out ever grounded the problem might be as we saw for example in the lehman crisis that they need to bail out not just the grounder but other property developers the warnings were always there last year a report said that china's property boom is a 52 trillion dollar bubble evergran could just be the first of the many companies to fail by august this year chinese developers had defaulted on more than six billion dollars worth of

loans the evergrand crisis is eerily similar to what happened in america in 2008.

It could have an impact on the us economy washington has not raised any alarm bells yet because they're fighting their own battles america the biggest economy in the world is facing a cash crunch here in america there's a new fear that the country is running out of money and this could happen as early as october that's next month.I'm standing in front of the u.s department of treasury and the mood in this building is tense u.s treasury secretary janet yellen has issued a warning to american lawmakers.

She's asked them to raise the debt ceiling and this is a request that has gone to the u.s capital not once not twice but numerous times yellen says that the u.s is heading into a new financial crisis and that so millions of americans may not have enough cash that american soldiers overseas may not get their pay. The question is how did things come to such a pass were there no warnings and what does this crisis mean for america's grand plans more specifically joe biden's three and a half trillion dollar spending plan. this problem is about america's massive national debt it stands at around 28.4 trillion dollars as of today this is the maximum the american government can borrow but even with these loans the biden administration is unable to meet its expenses sometime in october the us government could default on these loans millions of americans could be strapped for cash nearly 50 million senior citizens will stop getting their social security checks and american soldiers may not get their salaries the biden administration has no option but to borrow more else the federal government will not be able to pay its bills u.s president joe biden is facing opposition from his own party the democrats hold the majority in the u.s congress but they're pushing back against biden's pending plans.

The united states and china are the world's biggest economies they're both staring at defaults this economic distress is an indication of a brewing global financial crisis one that could kick off a financial pandemic at a time when the world is still struggling with the wuhan virus.