Won’t this cause inflation for the Chinese or are their markets that controlled?
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
Don’t they have many trillions in reserves?
Right now China has about 3.2 trillion in ForEx of all kinds and currencies which means that this bailout represents nearly half of the total.
ForEx is an extremely complicated subject, way too much for a single post, but it is essentially the lubricant for trade. If you don’t have enough of it in the right currency on an hourly (or less) basis to support your imports and exports then the machine will seize up.
So what China is doing here is risky as hell and if it doesn’t work they will soon have the same kind of financial problems that Iran does and that is stupendously bad for an export based economy.
They’re not going to do this with cash. They’ll print up some paper money (eg. bonds) like everybody else and make the poor subsidize the rich via inflation.
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?
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.
I’m guessing the state is just another fundamentally corrupt government that will print endless money to prop up the rich (including the state itself).
