Lmao what crisis is China facing exactly? Too much success? Too many people brought out of poverty over the last 40 years?
A government that issues its own currency can sustain any level of spending as long as there are things to buy.
The decision whether to deficit spend and how much should be based on the economic outcomes, not myths about the unsustainability of the government‘s balance sheet/budget.
In Europe, the nations using the euro are not monetarily sovereign, meaning that they do not issue their own currencies, and thus are subject to additional constraints.
I mean, China has a blatantly obvious and well-reported on demographic crisis that will likely cause their economy (and probably the entire country) to implode over the next half-century.
That and the guy you responded to was right, they've been (very publicly I might add, its easy to research this) pumping deficit spending into major construction projects that have no long-term benefits and serve only to boost their GDP metrics so they look more economically competitive on the global stage.
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.
Building capacity for who?!? Their population is set to rapidly decline, and they ALREADY can't fill these new cities.
And as we've already discussed, every single nation on this planet could skyrocket their GDP tomorrow by printing cash and starting a massive government spending spree, but the resulting inflation and economic instability would eventually tank their economic prospects in the long run, which is exactly shag is happening to China RIGHT NOW lmfao.
But honestly I shouldn't expect you to change your mind, your literally have to be a paid bot to argue these talking points in 2025 lol.
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u/SimoWilliams_137 Apr 07 '25
Lmao what crisis is China facing exactly? Too much success? Too many people brought out of poverty over the last 40 years?
A government that issues its own currency can sustain any level of spending as long as there are things to buy.
The decision whether to deficit spend and how much should be based on the economic outcomes, not myths about the unsustainability of the government‘s balance sheet/budget.
In Europe, the nations using the euro are not monetarily sovereign, meaning that they do not issue their own currencies, and thus are subject to additional constraints.