RE: If China’s bad debts were written down, its economic growth rate would be half the recorded number
OK, here’s the question, if America’s bad debt were similarly written down, what would be our recorded economic growth?
Do we or do we not have bad debts?
I don’t see how they don’t get ‘free’ money out of this, if the oversight authority (ChinaGov) is in on the scam.
They create a bank with zero assets. That bank then makes billions in loans, creating a negative balance in the bank. Remember, the oversight is in on the scam, so there’s nothing stopping them from going so negative. Gov then closes the bank. Those negative balances are simply closed/erased. The ‘losses’ are to a non-entity that didn’t have anything to lose anyway, so no one lost any money. All the loanees actually received/have/already spent the money, but don’t owe anything back to the bank since it’s closed.
Bam. Free $$$