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Non-Tech : Kirk's Market Thoughts
COHR 154.03+3.5%Nov 26 3:59 PM EST
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To: Gottfried who wrote (3099)5/16/2015 2:04:32 PM
From: Kirk ©1 Recommendation

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mary-ally-smith

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Very interesting....
China orders banks to keep lending to insolvent state projects
It seems similar to QE but in China it is with "infrastructure gone wild" rather than "Military gone wild" spending. For both countries, the politically connected will profit greatly from the expanding debt just as we have in the US. (Think Elon Musk, Apple shareholders, anyone with a pentagon paycheck... etc.)
Analysts said the move amounted to an official policy of “extending and pretending” that an estimated Rmb22tn ($3.54tn) of questionable local government debt would eventually all be repaid.
It is tiny compared to the "real debt" we have in the US if you account for unfunded public pension liability for everything from teacher salaries to Social Security payments.

Their “extending and pretending” is sort of like pretending that Social Security, Medicare and all the unfunded pension liability, especially in blue states, are solvent.
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