If they’re external creditors, it makes it a lot easier for them to go “nope, not paying that, what are you going to do?” when they’re one massive state-backed monolith.
that depends on who the creditors are and how they demand payment. a pound of flesh or a dove feather. evergrande went bust at the same time china became the world biggest auto exporter. i think china participation in the global economy demands new economic theories, considering the promiscuity between the public sector and the “private” sector.
Uh… no. If you pay attention to history, debt can and is wiped away without repercussion.
Debt is more of a threat, than anything else. If China fails to pay their debts, does the world just stop doing business with China?
The reason why there’s so much unpaid debt is because the ruling class has convinced workers to sell themselves out. That’s all. It doesn’t actually need to be paid just like college loans. The world would in fact be a better place if it wasn’t paid. The only people who get screwed are investors with more money than you.
Sure, to some of that - but China’s real estate market is simply vast, at one estimate over 50 trillion dollars’ worth - and individual wealth in China is heavily tied to RE. If that bubble pops, it’s not just the investors who will be up in arms.
They’re trying to authoritarian their way out of a massive speculation bubble.
I don’t think it will work, unless you can will away a black hole. Debt is a kind of gravity.
You mean if you can pick up enough speed in the transverse direction you can circle around it and never hit it?
Use the debt’s gravity well to slingshot into the stratosphere!
If they’re external creditors, it makes it a lot easier for them to go “nope, not paying that, what are you going to do?” when they’re one massive state-backed monolith.
“Give Taiwan nukes”, if the Dark Brandon memes are any indication.
Sovereign default is a thing. It’s a short term solution that can get a country out of immediate danger, but has very negative long term effects.
that depends on who the creditors are and how they demand payment. a pound of flesh or a dove feather. evergrande went bust at the same time china became the world biggest auto exporter. i think china participation in the global economy demands new economic theories, considering the promiscuity between the public sector and the “private” sector.
Uh… no. If you pay attention to history, debt can and is wiped away without repercussion.
Debt is more of a threat, than anything else. If China fails to pay their debts, does the world just stop doing business with China?
The reason why there’s so much unpaid debt is because the ruling class has convinced workers to sell themselves out. That’s all. It doesn’t actually need to be paid just like college loans. The world would in fact be a better place if it wasn’t paid. The only people who get screwed are investors with more money than you.
Sure, to some of that - but China’s real estate market is simply vast, at one estimate over 50 trillion dollars’ worth - and individual wealth in China is heavily tied to RE. If that bubble pops, it’s not just the investors who will be up in arms.
Can you provide some examples where debt was waived away without repercussions?