#PR Stimulus inadequate: Anne Stevenson-Yang, author of Wild Ride: China's Short-Lived Experiment in Capitalism, @GordonGChang, Gatestone, Newsweek, The Hill: https://apnews.com/article/china-singles-day-shopping-festival-f2a2ef53af878b61ce2c43e9196d7da5
The John Batchelor Show
John Batchelor
4.5 • 2.8K Ratings
🗓️ 13 November 2024
⏱️ 9 minutes
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Summary
https://apnews.com/article/china-singles-day-shopping-festival-f2a2ef53af878b61ce2c43e9196d7da5
1940 Wuhan
Transcript
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| 0:00.0 | This is CBSI on the world. |
| 0:06.2 | I'm John Batchel with Gordon Chang at Gordon G. Chang, and we're very pleased to welcome |
| 0:10.5 | Wild Rides author and Stevenson Yang to comment on the stimulus package. |
| 0:17.1 | I put that in quotes the way many people do from the People's Republic of China, given the crater that is property and the fall away of their future. |
| 0:28.2 | The miracle is turned to draws. |
| 0:31.1 | Why China is betting on local governments to spur the economy is the headline in the Financial Times. |
| 0:36.9 | This is upbeat Europe reporting. |
| 0:39.3 | The subhead 1.4 trillion fiscal package falls short of market hopes as Beijing braces for Trump tariffs. |
| 0:49.4 | And a very good morning to you. |
| 0:51.3 | You also have expressed doubt that this is a stimulus package. What is the intention and why the doubt? Good day to you, Ann. Good day, John. So this is really not a stimulus plan. It's a plan to ease government debt so that the local governments don't explode and the banks don't explode, |
| 1:11.6 | but it really doesn't do anything to stimulate the economy. |
| 1:15.8 | The economy is dragged down by property, and my memory of our conversations over many months |
| 1:24.5 | is that the debt falls on the municipalities, the locals, and the central |
| 1:31.2 | government has been reluctant as in no way to bail them out. Hence, the local governments have cut |
| 1:38.0 | the salaries in some cases laid off huge numbers of people and have no future until they clear the books. Is all that incorrect, |
| 1:46.8 | Ed? That's more or less correct, yes, John. So local governments were, you know, they tried to get |
| 1:53.5 | in on the stimulus monies back in 2009 by building all these new facilities based on debt. But the things that they largely built were things like, you know, |
| 2:04.7 | water plants and heating plants and bus lines and metro lines and things like that. |
| 2:10.7 | And their leverage to the teeth and their debt payments, |
| 2:15.1 | their interest payments are just beyond what they can support. And so they |
| 2:19.4 | keep on begging the central government to relieve that debt. And the central government's like, |
| 2:24.4 | you know, no, you're on your own. We don't want the banks to crash, but we don't want you to, |
... |
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