"China's Ministry of Housing asked local governments in hundreds of cities to “vigorously” buy unsold commercial homes and convert units into affordable housing for the working class." -Ben Norton
"Isn't it ironic that the Chinese housing bubble was cited across the West as a "failure" of the Chinese gov when it was in fact created by runaway private enterprise, only now being resolved by Beijing's intervention...?" -Brian Berletic
“There’s been a spate of different policies [to destock],” Macdonald said. “The policies sound good in principle, but it just depends on where the government is going to get the money.”
Like how they got the money for high speed rail. These pricks will never ask "where the government is going to get the money" when it comes to U.S. military spending, for that, money is always available.
There is an issue to watch out for, here. Local authorities don't always get their money from the central government. They may have to find another way to raise the capital. This is sometimes achieved by borrowing against or selling other local authority assets. Doing it this way can empower the banks. Michael Hudson has suggested that this is a contradiction that the CPC hasn't yet been able to resolve.
True, but atleast unlike the west, the commercial banks in China are all state owned. So, any debt by local Governments can be written down or written off.
Unfortunately not every other government. Take the whole Eurozone, for example, which has ceded control to the cartel of European private banks. Or Argentina, where Milei recently nearly had Argentina abandon its monetary sovereignty.
Won't somebody think of those poor landlords? How will home owners cope with property that doesn't increase by 10% per year?
I know people that had their rent increase an additional 500$ during Covid bc of the checks. For perspective, they were already paying like ~2200$ a month for a decent sized home.
Imagine living in a country where the sole prerogative of all policy isnt to increase property values so that the rich get richer
I keep saying this bc it's true: China is where dreams become reality, and the west is where dreams go to die.
Affording/owning a home is a dream for so many people in the west. And that's what it will stay as: a dream.
Oh my gosh! This is wonderful! 👍 China actually cares for the people. ❤
