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The difference with China is as a Communist state, they can make the debt disappear into some bad bank in an instant. One year debt becomes thirty year debt to
by vfulco 9y ago
The difference with China is as a Communist state, they can make the debt disappear into some bad bank in an instant. One year debt becomes thirty year debt to be worked out long after the officials are gone. There is no downside to them and who in the global investment community will hold them accountable? No one.
- pwaai 9y agothe future Chinese generation will pay the burden. Debt simply doesn't go away on it's own, it can only be kicked further down the road until you can't. it's foolish to believe that China is somehow immune from economic downturns because it's a communist state. USSR would like a word with you....