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To: BeauBo

“Their typical project is what is called a debt trap, where they fool or bribe local Government officials to sign their country up for a Chinese project, where the Chinese do everything, including be the bank. Later the Chinese pull the carpet out from under the business and take ownership of the asset through foreclosure of the loan.
The other big scam they run, is to trade a high profile project that benefits a local politician politically, for the rights to extract natural resources - often worth hundreds or thousands of times as much.”

You basically described the EU and the World Bank. Ask the Greeks


9 posted on 08/14/2018 9:53:53 AM PDT by DesertRhino (Dog is man's best friend, and moslems hate dogs. Add that up. ....)
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To: DesertRhino
"If you were a local, you might like the Chinese method better (construction vs. destruction). Locals suffer less."

This stereotype overlooks the huge and long running foreign aid of the US (the world's largest donor nation, since WWII), as well as the reality that the Chinese infrastructure scams, are really huge rip offs.

For a while, the Nazis were the toast of the town, the face of modern scientific socialism, rebuilding German industry and building impressive Autobahns across Germany. Herr Hitler was Time Magazine's Man of the Year (1938, after a string of previous cover features). Eventually, the truth came out, and opinions changed.

Soviet propaganda and Potemkin villages had people around the world thinking that not only was socialism a viable economic system, it was actually better for developing lesser developed countries. Well into the 1960s, it was conventional thinking, and newly independent African nations adopted it wholesale. Eventually, the truth came out, and opinions changed.

Now China has had their run pulling the wool over people's eyes too. China promoted the idea that they could provide all the modern technology and development in the world - for pennies on the dollar! Just look, they did it themselves!

In country after country that bought into their deals however, the realization is the same - the Chinese are acting as overlords. That is our mine/seaport/farmland now - you leave us to it, or we will find someone who will, they threaten. Instead of bribes, local officials who try to reassert National interests face professional blackmail by Chinese Intelligence. The countries have lost their most valuable assets, and face bleaker long term development prospects. Increasingly, the truth is coming out, and opinions are changing.

"You basically described the EU and the World Bank (lending for Infrastructure. Ask the Greeks"

So you dismiss Western construction (and ignore the largest donor, the US, altogether), but admire Chinese construction?

That ignores the fundamental difference between a good deal on subsidized terms, and a bad deal on predatory terms.

The World Bank offers below average interest rates, and includes substantial grants in the financing for projects that have been carefully analyzed to most benefit the country. The Chinese charge above average interest rates, provide no aid grants, and design projects unilaterally to ensure their failure, so they can seize the collateral.

If an irresponsible socialist Greek Government cannot balance their checkbook, and blows their rent money on domestic political giveaways, that does mean that their subsidized rent was a bad deal. They got great deals on the real investment projects, and only began to face higher interest rates on cash loans to cover their budget deficits, as they consistently refused to spend less than took in, or stick to the terms of their loans. It is a totally different story of budget support, which the Chinese do not do at all.

17 posted on 08/14/2018 5:58:20 PM PDT by BeauBo
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