• Wednesday, December 19, 2018

China Has a Stealth $410 Billion Stash to Boost the Economy

Discussion in 'China & Far East' started by haidian, Aug 10, 2018.

  1. haidian

    haidian SENIOR MEMBER

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    China Has a Stealth $410 Billion Stash to Boost the Economy
    Bloomberg News
    Aug.10 2018

    Stashed away around China is a pile of cash larger than the annual economic output of Norway.

    Governments at all levels across the nation have a total of 2.8 trillion yuan ($410 billion) saved, according to researchers at Industrial Bank Co., and that money could be used to boost economic growth in the event of further escalation of the trade war.

    The money is from unspent revenues, profits from land sales, levies or profit from state firms, expected bond revenues and other sources. The hoard exceeds the targeted national budget deficit of 2.38 trillion yuan for this year.

    While those funds are unlikely to be spent all at once, the sheer size of it shows that there is a cushion available to shield the economy from shocks due to the trade war with the U.S.
    In addition, extra funding could come from public-private partnerships or local governments, according to the note.

    https://www.bloomberg.com/news/arti...tealth-410-billion-stash-to-boost-the-economy
     
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  2. haidian

    haidian SENIOR MEMBER

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    The "hidden" money is more than India's total foreign reserves
     
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  3. khansaheeb

    khansaheeb SENIOR MEMBER

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    Perhaps you could lend some money to the Indians to build toilets?
     
  4. haidian

    haidian SENIOR MEMBER

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    Actually they believe that we are so poor and they are so rich so the Chinese people are lining up to beg to be let into India...This brainwashed strong belief is.. well , epic.

     
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  5. TaiShang

    TaiShang ELITE MEMBER

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    Shhh, do not wake up anybody. China is collapsing. It moment of truth is coming. Trump's plump twitter fingers are making everybody shiver.
     
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  6. Vijyes Yechury

    Vijyes Yechury BANNED

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    China has massive internal debt which is much higher than the money you gave. Nevertheless, it is very foolish of China to keep any such hoarding of money as money is simply a monetary tool which can be printed by the central banks. Why hoard money and then print more money as deficit?

    China already has 3 trillion foreign exchange. What is the need for keeping central bank printed currency? How is it stealth in any manner? China can print 5times that money just by asking the central bank to do so. Technically, central bank and in turn China has infinite Yuan which can be printed at will.
     
  7. TaiShang

    TaiShang ELITE MEMBER

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    China should have listened to you.
     
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  8. haidian

    haidian SENIOR MEMBER

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    China doesn't not annul and reprint money on a whim like you Indians do, our currency is global reserve currency and we need to make it worth its value and since we are the biggest trading and manufacuturing nation in the world, our money in the long run has more real value even than US dollar. The debt we owe is to ourselves, the debt others owe us is from other countries so our debts are also our assets.
     
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  9. Kai Liu

    Kai Liu FULL MEMBER

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    This guy is actually here to troll. But there are indeed a lot of indians who are ignorant if you read some comments from their less international forums.
     
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  10. Vijyes Yechury

    Vijyes Yechury BANNED

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    Give me a reason to have this stealth 2.8 trillion yuan before you make tall claims. At the end of the day, 2.8trillion yuans which are present are printed by Chinese central bank. Why print it if it is not to be used at all but simply kept as stealth money?

    The money can be printed any time and there was no need to print when it was not needed.
     
  11. haidian

    haidian SENIOR MEMBER

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    Did you read the contents?
    "The money is from unspent revenues, profits from land sales, levies or profit from state firms, expected bond revenues and other sources. The hoard exceeds the targeted national budget deficit of 2.38 trillion yuan for this year."
     
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  12. Vijyes Yechury

    Vijyes Yechury BANNED

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    Yes, if that is the case, why take deficit of 2.4 trillion yuan? There was already unspent money available and could have been used instead of deficit.
     
  13. haidian

    haidian SENIOR MEMBER

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    Don't know, financial manuvers I guess, you lend money while you borrow money based on your judgement on the markets and future profitability outlook, besides, you need to have some extra money for emmergancies. in a word, the least thing that China worries is not having enough money and many countries come to China to bail them out and China usually does help them.
     
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