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It's China's turn to wrestle with a pile of bad debt

  1. Stacie L profile image88
    Stacie Lposted 5 years ago

    ..Infrastructure development was supposed to spread the wealth created in factory cities to rural inland areas to raise the living standards of those poor villages. Now, rising levels of bad debt will make it much harder for Beijing to continue to invest in those efforts to realize Deng's vision of spreading the wealth to all of China.
    Beijing's massive spending spree poses another threat to China’s long term economic stability. Pumping more money into infrastructure projects may help prop up growth. But that cash infusion raises the risk of a sustained bout of higher inflation.

    read the entire article
    http://www.msnbc.msn.com/id/43600432/ns … e_economy/

    looks like China is going through some growing pains like the rest of the world...  the good news is, American companies are coming back and starting manufacturing plants again..

    1. dutchman1951 profile image60
      dutchman1951posted 5 years ago in reply to this

      Shovel Ready Jobs and Bridge repairs, do not last long term. Comon sense will show that a two year construction job will "NOT" pay a 30 year mortgage, raise two kids, and give them a great start! And make a retirment.

      all of which should have neen obvious when they Introduced them.

      Opening Free Markets, real tarrif agreements with other countries, Goverments hands off Business, and using the True definition of Small Business; (Factories with 1000 emloyees or more) to make the start-ups

      new technology helps also.  We are not China, sorry.

  2. recommend1 profile image71
    recommend1posted 5 years ago

    Another western economist with his head up his @ss who has no idea what is going on here big_smile   Among other things, I edit translations of bank reports and company reports to shareholders etc., and the total debt talked about in this "opinion only report" is like a tick on a very big dog.

    Luckily the US is getting a 50 square mile Chinese industrial estate shortly, that should help you guys get to grips with simple economics.

    1. dutchman1951 profile image60
      dutchman1951posted 5 years ago in reply to this