Local debt issuance don't become the new channel debt waste
Local debts finally try out, perhaps this is the replacement of a temporary land fiscal measures, however, in a sense, the local debt and land the change of the market closely related. Now the land market downturn in again, so, 10 trillion place debt risk will be exposed.
Bank credit is the main source of local debt fund, 80% or so, land market downturn, will reduce the value of the mortgage on land valuations, local debt risk may adversely affect the entire financial system. From the experience to see, if the local government can't get rid of financial dependence on land, then, even if this round of developers money collecting problems, many developers collapse, but first, a local government is in a year, not a prime couldn't stand the place.
Something like this is really sad. Who will be from the land, the key is to do up the local economy. But, from the financial crisis, the global government only two strokes can go: a move is the managers, significant debt, deficit up welfare, the MLB hats result is the debt, social unrest, white-collar revolution, Wall Street white-collar workers in high inflation and high unemployment blow, to the streets, scorned seal of bank note, peaks. A move the tightening fiscal and save money, the result is economic depression, protesting Greek states. Perhaps, we have to face this two strokes, are not good idea.
Seal of bank note can only lead to the collapse of the evaluation system, the scourge of the root of the market economy. Inflation type distribution of wealth, caused the capital asset bubbles, increasing the cost of living, dilute the hard-earned money of the people, and to reduce the notes purchasing power. Only can let the economy more chaos, people more irritated. This recruit absolutely get one, also can't go. Issue bonds and also want moderation, bonds hair, the hair is equal to the currency. We pointed out that the United States Treasury bonds in improving the upper limit when points out, seal and translated in essence notes is consistent, without any difference. All grew up in the help of the government, to waste, no single person buried, and finally let all the taxpayers foot the bills. We can understand, why global financial rob so hate to the United States, the American people are for Wall Street so angry, the reason is very simple, that is printed notes from the depredations of most of the baseball hats wealth, more than limit, dry disaster, let most of people take risks. This is the logic of rogue, you don't save me you also have a hard time. You to save him and he will be partitioned the relief funds, it is the American investment Banks doing. The fed's printing of bank note is the global financial crisis of the frequent direct source.
We don't know tightening fiscal will give the world so what kind of risk, Obama urged other countries implement the positive fiscal policy, in order to avoid the growth of the global loss of power, in fact, in the present, and the crisis of old Europe except to solve the crisis of the banknote printing works, more important is tightening fiscal, live within your means. Long live the debt has come to an end, because the money illusion with the collapse of the notes system, scam has to remain in the world. The number of people not only focus on currency, pay more attention to the actual purchasing power of money. Only the shine on a demon mirror out purchasing power, people can see clear, a so-called asset bubble, the going is actually notes itself. Convert the after perspective, it was found that, through the crisis, must retrench the good work industry, innovation, can out of the reality of the crisis. In China's case, big government of the cuts, decrease the fiscal expenditure, may be more important. The government itself is a service management institutions, itself is not create value, if this piece of excessive inflation, control too many resources, market economic damage is very big.