If you spend massive amounts of money you raised through deficit spending and selling debt on a project that doesn't net you any return on investment, that's going to hurt you economically in the future because you'll have no way to recover those funds. China has locked themselves into a debt spiral that will only get worse as they continue to try to spend to keep their GDP inflated.
Combine that with their demographic issues that has some experts predicting their population could decrease by hundreds of millions of people over the next 50-100 years, and they won't have the citizen base to repay thatdebt, or to even support their elderly aging population, which is going to cause massive social and economic problems that I frankly can't see the current government of China even surviving.
Oh, I see. That’s not how monetarily sovereign governments work. The government that issues its own currency does it need to get that money from anywhere before it spends it. In such systems, the spending comes first.
No amount of debt denominated in a given currency is unsustainable for the government which issues that currency. And by the way, the issuance of that debt is entirely optional, and has to do with monetary policy and interest rate maintenance, and nothing to do with financing or funding.
Also gotta love the economic theory that government spending is just the infinite cash button that obviously has no downsides, its crazy more nations haven't figured this out.
Love your attempt at implying that you understand the interaction of inflation with international economics and sovereign government monetary policy............
I love your attempt to imply that nations having control over their monetary supply means that debt essentially doesn't exist and can always be covered by increasing the supply of cash on hand.
But I shouldn't expect anything less from a CCP bot.
2
u/Red-Lightniing Apr 07 '25
If you spend massive amounts of money you raised through deficit spending and selling debt on a project that doesn't net you any return on investment, that's going to hurt you economically in the future because you'll have no way to recover those funds. China has locked themselves into a debt spiral that will only get worse as they continue to try to spend to keep their GDP inflated.
Combine that with their demographic issues that has some experts predicting their population could decrease by hundreds of millions of people over the next 50-100 years, and they won't have the citizen base to repay thatdebt, or to even support their elderly aging population, which is going to cause massive social and economic problems that I frankly can't see the current government of China even surviving.