China's banks are partially privatized central planning. They have tons of bad loans all the time that the government buys and writes down on a regular basis. The government prints its own money and gives it to the banks for their bad loans. The banks must follow government lending dictates. The one party system has so far kept corruption under reasonable control. Our system would not be able to handle that big of a temptation.
Any comparison between China and US is going to be useless due to political differences.
That said, investors are trying to exit property at the moment.
But exit to where? Where is safe?
Everything is a Ponzi at this point.
Mr Xie
“If you keep on printing money to use for speculation, you will have hyperinflation and a currency crash,”What about printing $85 billion a month for 14 months?
Hyperinflation and a currency crash?
Or strong currency and telling everybody else what to do?
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