Posted on 05/23/2023 7:46:30 AM PDT by SeekAndFind
The debt trap is ensnaring many of China's cities. While Americans properly worry about the ballooning federal debt, China is already beginning to experience a crisis due to debts incurred by local governments. Bloomberg has a long article focusing on the city of Hegang, in the northeast province of Heilongjiang. Hegang, with a population of nearly a million, is in decline along with its coal industry and experiencing brutal spending cuts in order to keep up with its interest payments.
Hegang's residents are now feeling the brunt of the fiscal clampdown. During a recent visit to the city, locals complained about a lack of indoor heating in freezing winter temperatures, and taxi drivers said they were being slapped with more traffic fines. Public school teachers worried about rumored job cuts, and street cleaners endured two-month delays to their salaries.
Outside the city's largest hospital, a middle-aged orderly wearing green scrubs and a mask said her employers unilaterally changed her work contract from a government-run medical facility to a third-party vendor, reducing benefits like paid overtime for working on holidays. Her monthly wage of 1,600 yuan ($228) had been delayed by more than 10 days every month since late last year.
"I'm upset about the situation," said the woman, who asked not to be identified in order to talk freely about her work conditions, as she pushed a wheelchair loaded with flattened cardboard boxes to an outdoor recycling point. "Everything is so expensive. I can barely get three square meals a day."
Hegang (photo credit: STW932, CC BY-SA 4.0 license).
Hegang is experiencing problems that likely will spread elsewhere in China:
Goldman Sachs Group Inc. estimates China's total government debt is about $23 trillion,
(Excerpt) Read more at americanthinker.com ...
Bkmk
In the South we do not see district heating very often. Austin TX is one place that has a large piping system for hot water circulation among downtown, but we do not see it in many other places. Some friends lived in Russia, and the date that the heat would be turned on (and off) for the city was announced each year.
It is used in northern climes and in top down economies, on the theory that it can be more efficient than low pressure boilers in each home.
The same argument against centralized planning works against district heating. The system efficiency is only as good as the technology and design, less differed maintenance.
Which is why most Americans prefer to manage their own heating and cooling systems.
Now onto to distributed power generation.
Yeah but no one is as leveraged as the Chinese government.
In some municipalities, their tax revenue is only enough to cover 25% of their budget.
The media and pundits are all, that is every one of them, entirely missing the historical point. Some are staking their very careers on their misconception blunders
Here is what is really happening.
Chairman Xi is attempting to go forward by going backward. Xi is attempting to reinstate a more Maoist, more pure, state of communism. The current CCP under his leadership is all about reverting to the communism prevailing previously. Capitalism and relative personal freedom have crept in polluting the purity of communist thought
To achieve the desired end, the current economy and all capitalist, entrepreneurial and personal freedoms must be destroyed.
The bankruptcy of all businesses not directly controlled by the CCP is therefore mandatory. The existing corporations will become CCP controlled entities and all the jobs restored under CCP auspices.
The question the press should be asking is will the young people permit the reversion? Will they submit to government control over every aspect of their lives?
And in some of our inner cities? I understand your comparison, but the essentially "perpetual debt" to be paid without ever being paid off is building around the world. The Congressional Accounting Office sees a continual acceleration in ours. So it's not a contest declaring that the last entity to declare bankruptcy wins. All lose. As an example, our "world beater" DoD budget is now less than our interest payments, so says the news. I care far, far less about China than this nation. I don't think "we" have a palatble answer to this. Regards.
I haven’t been back to Shanghai in a while. Used to go to Guangzhou every year, but that ended with COVID.
You are absolutely correct to see this as a global, marxist/progressive governance phenomenon.
Only central banks and governments can print money to monetize and inflate-away debt (and by default, they all will)
But for local governments, whether its Chicago, Caracas or Hegang, running a progressive, nanny-state, surveillance-state government is expensive, and there is NEVER enough money.
If it becomes bad enough - the central government will print money, create “stimulus” programs to bail them out, and resort to political oppression to keep their marxist cronies in power.
Same in the USA.
We have our own problems, no doubt, and if we don’t resolve them eventually we’ll end up where they are.
But make no mistake, they are already there.
The reason people have been talking about the Chinese collapse is because if their financially situation were applied to any Western country, that country would have had a financial meltdown long ago.
The CCP have been able to use their power to control society to keep everything together. But even their power cannot change the laws of mathematics. They are barely keeping it together and things are close to falling apart at the seams now.
Hello. You've just described, more or less, the finances of places like Buffalo NY and Detroit MI
Yes, Pudong is where we will stay.
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