Is China Adopting Monetization Policy to Solve Its Debt Problem?
(博讯2003年11月08日)
(Nov. 08, 2003) China has experienced huge price increase in last few weeks, ranging from 10-30% in some household and food products. Some people explained that it is caused by the decrease in agricultural output this year. One Boxun analyst says that it is caused by monetization policy that China government is adopting. Monetization policy is used normally when a government can not solve it debt problem. China has been developing heaviely relying on debt. Many corrupted officials cooperate with developers to "re-build" the cities, they force the current residents to move out violently.
Many cases show that "re-building" cities has been effective way to convert power into money. The developers may just grab the money after sell the real estate. Or they make the book "losing money", thus "can not" pay the loan. With the permission of corrupted officials, the government's debt is growing larger and larger. (博讯boxun.com)
Analysis in Chinese:
http://peacehall.com/news/gb/china/2003/11/200311021356.shtml
(博讯boxun.com)
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