Posted on 11/08/2024 8:11:00 AM PST by EBH
China unveiled a 10 trillion yuan (US$1.4 trillion) program to help resolve a local government hidden debt crisis, as authorities moved to shore up a slowing economy facing fresh risks from the reelection of Donald Trump.
Officials fleshed out the details of a debt swap plan approved by the Standing Committee of the National People’s Congress at a press briefing in Beijing on Friday. The funds for the program — already telegraphed last month but without a price tag — will be provided through 2028, they said.
Finance Minister Lan Fo’an also pledged to take a “more forceful” fiscal policy next year, and “actively” use the room for higher official deficit, in a sign that bolder steps could lie ahead.
While the scale of the local debt swap plan was close to the upper range of forecasts by most economists, it disappointed markets due to a lack of fresh public spending to promote growth. Trump’s sweeping election comeback stoked expectations for Beijing to strengthen policies boosting domestic demand to offset a potential plunge in exports due to the president-elect’s tariff threats.
(Excerpt) Read more at financialpost.com ...
Amazing changes in the world happening all because Trump is returning to the White House.
GO CHINA! DO IT!..................IT’LL WORK!.....TRUST ME!!!.................😁
Add in Russia talks
Ukraine talks
Iran is concerned
NYC is stopping migrant debit cards
Self deportation is in style
I don’t recall this much impact ever even when Reagan won. At least not this fast and before inaugeration.
Let the CCP manage deficit spending. That’s where we are, anyway.
Bump
China does not send out stimulus all wily-nily like we do.
So this is worth noticing for now.
Will they bring in Joe Biden and Tim Walz plan and implement this endeavor? Hunter can be assigned to the Oversight Board of Directors.
Watch exchange rates. The Honduran lempere went from 24.59 HNL-$1USD to 25.15 in the past two days. It was hovering around the 24.5 range for years.
The dollar is getting stronger. Maybe China knows something.
EC
China should ask the United States for financial aid, as Biden still has a few weeks to go. Biden would probably agree - just as long as the Biden family gets its customary cut.
Oops! I shouldn’t have said “cut”. I meant consulting fee.
It’s definitely worth noticing. We’re about to see some new kids on the block.
Printing an extra 10 trillion yuan ?
Band-aid on a bullet hole.
Wait until China tries to collect on its Belt and Road loans and countries tell them to eff off. You can’t do gunboat diplomacy without the gunboats. Xi is a maoist moron who thought he could recreate the British Empire. Should have tried to be Rome instead...except Vietnam would have Cannaed them.
nobody will be getting bailouts from the US treasury once Trump is in office.
How did Germany collapse?
> Wait until China tries to collect on its Belt and Road loans and countries tell them to eff off. <
I’ve wondered about that. Last year I was listening to a radio interview of a young African man from (I think) Kenya. He was going on and on about how Chinese loans were being used to improve his country’s roads.
So what happens when a new Kenyan leader repudiates those loans? What could China do? Instigate a coup? Carry out a targeted assassination?
Or just eat the loss?
I think the CCP is off by a factor of 10.
In the fwiw department, the Chicoms will experience so much inflation they won’t be able to report it.
5.56mm
1980 was a very different world.
China thought they could acquire land through predatory loans and export its disaffected male population to stave off any type of revolts from the 300 million young men who will never have the opportunity to marry and have kids, because of the one child disaster.
They still they can overwhelm local populations. They will fare about as well as every other colonial power in Africa has fared.
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