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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.18-0.5%Oct 31 5:00 PM EST

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To: TobagoJack who wrote (131586)3/7/2017 12:09:56 AM
From: elmatador  Read Replies (8) of 217515
 
China is making the same mistake as Japan, which spent trillions of yen on infrastructure projects that did little to reverse economic stagnation after the collapse of the 1980s property bubble.

it’s almost like the classic Keynesian example of paying someone to dig a hole and paying someone to fill it up.”

China spent more than $10.8 trillion on infrastructure from 2006 to 2015, according to Bloomberg calculations. Outlays for roads, airports, ports, railways, and the like rose 17.4 percent last year, far outpacing the country’s 6.7 percent expansion in gross domestic product.

The relentless spending on new construction is weighing on China's public balance sheets. Total debt was about 260 percent of GDP in 2016, up from about 160 percent in 2008, according to calculations by Bloomberg Intelligence. “The pace at which China has taken on debt rings alarm bells,” Orlik and fellow Bloomberg Intelligence economist Justin Jimenez wrote in a report published on Feb. 23, noting that precipitous increases in debt in other countries have been a prelude to a financial crisis.

bloomberg.com
Coisa de louco amigo!



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