Author: The Christian Truther
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SIGN UP: https://freedomfightertimes.com/your-profile/register INFO: https://freedomfightertimes.com/info SOURCE: https://freedomfightertimes.com/news China’s Communist Party goes way of Qing Dynasty as debt hits limit Nobody rings a bell at the top of the credit supercycle, to misuse an old adage. Except that this time somebody very powerful in China has done exactly that. China watchers are still struggling to identify the author of an electrifying article in the People’s Daily that declares war on debt and the “fantasy” of perpetual stimulus. Written in a imperial tone, it commands China to break its addiction to credit and take its punishment before matters spiral out of control. If that means bankruptcies must run their course, so be it. The 11,000 character text – citing an “authoritative person” – was given star-billing on the front page. It described leverage as the “original sin” from which all other risks emanate, with debt “growing like a tree in the air”. It warned of a “systemic financial crisis” and demanded a halt to the “old methods” of reflexive stimulus every time growth falters. “It is neither possible nor necessary to force economic growing by levering up,” it said. Most think the author was either President Xi Jinping himself, or his right-hand man Liu He – who handles daily operations for the ‘Leading Group’, China’s version of the White House National Economic Council. Capital Economics says budgeted funds must be disbursed by the end of this quarter under new finance ministry rules, implying another $310bn of bonds by late June.