“It would be inappropriate for the central government to directly provide fiscal support, as it could lead to expectation of future government bail-out and therefore moral hazards,” Zhang said.
Ouch, no handouts for the financial bros…😂
After giving lessons on socialism, China decided to teach IMF a class on capitalism as well.
Did the IMF offer a similar figure to help in Xinjiang, no strings attached, or?
The IMF is excellent at giving advice on how to develop your economy. Just do the opposite of what they recommend.
In May, officials unveiled the biggest rescue package yet. It contains a 300 billion-yuan ($42 billion) central bank fund that attempts to help local governments buy finished but unsold homes and turn them into subsidized housing.
Cool.
That’s aimed to reduce the massive housing inventory, but fell far short of the 1 trillion to 5 trillion yuan that some analysts said was needed to deliver a more decisive fix.
Uh huh. Go on… Oh that’s it. You just made it the fuck up.
Separately, the IMF warned of “significant downside risks” to China’s inflation outlook, saying “a negative domestic demand shock amid high debt levels could trigger a period of sustained deflation.”
So the thing that workers in the west have been asking for wrt the housing market for over a decade now.
It estimates that real GDP in 2029 could be 5.4% lower in a scenario of prolonged deflation — or a period of declining prices — where core inflation stays at minus 0.1% for five years. That could also lead to slower growth among China’s trading partners.
Read: Wealthy American capitalists.
In short, China rejects advice given regarding their housing market from an institution lead by a country with an overinflated and unaffordable housing market.
The IMF will give advice whether you ask for it or not. Then all you have to do is the exact opposite and you’ll likely be voted in forever with high public support.
Edit: I see @[email protected] got there before me lol
As a rule, you should always decline any IMF proposition. For the safety also send back severed heads of the IMF negotiators, but i guess that would be uncivil.
Uncivil and it gives the crakkker empire an excuse to show why American’s can’t afford healthcare. Not that they needed an excuse.
what I’m reading here is that foreign capital is throwing a tantrum cause Chinese gov is gonna let them lose money on shit investments because they prefer houses being used for their intended purpose rather than asset vehicles for wealth accumulation
sucks to fucking suck doesnt it
It’s actually quite hilarious. The CPC has made a fool out of these imperialist scum. They thought that they could infiltrate and overturn Chinese socialism. But socialist development is superior to capitalist development in every way. Even with market mechanisms in place. And a strong socialist state has prevented capital from taking power. Now all the imperialists can do is screech about China’s “inevitable” collapse.
What is the “housing market” you goddamned freaks?
What needs rescued in China, I feel like the article is missing some context and is starting with the assumption that everyone just knows china needs to bail things out.
Am I just this out of the loop?
The context is that the West doesn’t know how any of this works. You’re not the one who’s confused.
They know how it works it’s just that their goals are antagonistic with the evil CCP’s. The IMF, which is gravely concerned about China and the Chinese, wants houses to be speculative assets so that they are overpriced and there are a ton of homeless people a la USA.
That’s of course what they wanted: to neoliberalize China. And the fact that they thought they might get it is funny.
- 2017: China’s Xi says to maintain principle property is not for speculation China will maintain the principle that houses are for people to live in, not for speculation […]
- 2024: China’s housing minister says real estate developers must go bankrupt if necessary
American bond holders need saving, thus chinese goverment must go in debt to save them
China’s undergoing a (controlled) demolition of its real estate speculation market, returning it back to being an industry and foundation for the people, rather than finance. All the developments are still there, and the actual industry (not speculators, actual productive capabilities) will remain as well, and unlike in the west there’s no mass evictions and impoverishment of the people, either.
Naturally, the west thinks this is a bad thing and a sign of collapse…
When you know that capitalism can only be maintained by injecting massive amounts directly into big companies and banks, paradoxically applying the “econ 101” logic of “if a company fails, they weren’t good enough” is the anti-capitalist move. China is letting the private sector reach its inevitable end.
The only thing that needs to be injected into the IMF is redacted
Air bubbles
We love to see it folks. Fuck the IMF and World Bank vultures
That’s an insult to Vultures. Vultures are just animals doing their niche.
Some of the most evil institutions ever created. Vultures at least wait for you to die.
Vultures also aren’t evil, they are just garbage disposal birds that mean no harm. More than can be said for the IMF.
100%
This is what a dictatorship of the proletariat looks like. IMF can’t understand.
Lmao why would they expect any other response.
