- Mar 2, 2022
Chinese have borrowed from their own future.Yes you can. You can borrow shit loads of non-existent money and just build and build until real estate becomes 30% of your GDP. GDP does not measure asset quality and that’s the trap the stupid CCP economists have fallen in trying to match the west dollar for dollar. However, the asset quality and returns of assets in democratic countries like India are much higher and more transparen.
And for the CCP politburo when all these assets start declining in value and collapsing, you can bleed the peasants even more by directing all their hard earned moneys to be used as collateral to generate even more risky debt and keep building assets that are constantly declining in value. Hence no long term value generation in your stock markets. Now that the economy has collapsed in CCP land, the party secretaries have nowhere to hide. The pants are off and peasants are lining up with sticks to bleed the CCP goons asses.
Of course the peasants get killed when they demand their money back from banks, but that is not going to stop them. CCP’s engineered, low quality GDP is at a total risk of collapse. Hence all the billionaires and millionaires are taking the first available boat to exit the dysfunctional CCPia.
It's not that they don't realise what they're doing but they've made their choices.