China announces trillion-dollar bailout as debt crisis looms
China announces trillion-dollar bailout as debt crisis looms
Burdened with huge debts, provincial authorities have been left struggling to provide basic services and pay civil servants.
Somehow, I really don't think this will be the time China will bankrupt.
Don't they have many trillions in reserves? Of course they won't be bankrupt
Bruh they can print the money for rich people just like USA does. It's the same capitalist system everywhere. The rich get richer and the poor continue to drown in inflation, etc.
Kinda weird that they're calling the "collapsing real-estate sector" an economic challenge when that's completely on purpose
What do you mean on purpose?
If the real estate market is doing good, that just means that housing is getting more expensive and investors get a lot of profit out of it. China did something (tbh I don't know what exactly they did) to make housing prices go down again. That means that investors lost money and the real estate market wasn't doing well. It was on purpose because the point was to make housing cheaper, which is a good thing, but if you only see housing as something to make profits from, then this means that that market isn't doing good.
I'm guessing they believe that the real estate collapse is a 4d chess move to entrap private equity. I'm also guessing they don't realize the largest real estate developers in China are already state owned entities...
SOE are owned by the state, but they are operated just like any other profit seeking organizations, and thus are not immune to the same problems with private equity we have in the west.
Won't this cause inflation for the Chinese or are their markets that controlled?
It does not sound like it. It seems more like the United States in 2008, where claims for money far exceeded money in existence. And therefore, when money is created, it does not actually cause inflation, but it causes less deflation than their otherwise would be.
happy printer noises
1 yen is the equivalent of $.14. Their shit is already inflated to hell.
I thought it was pegged to the dollar somehow.
Aren’t they currently in deflation