- Silver Report Uncut
The economic impact from the production halts in China could cause more than half of China’s largest banks to fail according to the last Central bank stress test. At the time the test was written the worst-case scenario is that China would drop to a little more than 4% GDP growth 17 of China’s largest 30 banks would be at risk of failure. China performed it’s first official bank takeover in 30 years last year and several other banks have been bailed out recently due to the economic slowdown. Oil demand has been in freefall due to the production halts in China and now the sea is turning into a parking lot for oil tankers that were once destined for China. They have declared force majuer in several cases meaning they can void contracts and cancel orders due to no capacity and existential circumstances. So the Tankers are just waiting around until they have someone to buy the oil. This is sure to have a huge economic impact.