China's Premier Who Runs the Economy Is Writing a Self-Criticism Review/Current Approach Is Foolish
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- čas přidán 17. 05. 2024
- #Chinainsights#Chinanews
April 4 is the traditional Tomb Sweeping Day in China. This is the former residence of Chinese Premier Li Keqiang, who passed away last November. People spontaneously brought flowers to pay their respects. The sudden death of the former Premier in November 2023 sparked wide-ranging speculation. An inside source familiar with the top echelon of the Chinese Communist Party said that Li Qiang, China's current Premier in charge of the economy, is writing a review of the Chinese economy because of former Premier Li Keqiang. What is the reason for this? We'll cover this in the second half of this episode. First of all, let's look at China's desperate shortage of money.
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I really find it astonishing how much of China’s resources went into buildings and projects that were never finished!
to keep the peasants hands busy so they don't overthrow Zi xinpig
On the other hand, when they saw that many projects that _were_ finished stayed vacant, abandoning other projects rather than finishing them could be seen as not throwing good money after bad. But really, a lot of projects were unfinished because the money ran out.
I don't think it mattered, I think it was always just a way of keeping the money coming in.
these corrupt construction companies and local governments are keeping the party hostage with these unfinished projects.
all they want is to grab central funding and can't even promise a return on investment.
@@pennycandyys a desperate gambit they knew was gonna fail lol, I would be desperate as well if the system i worked in had no way out, just another aspect of a runaway train thats been building up for decades...
From the US, I'm very thankful for this cultural translation. It seems strange to me that the Chinese people would mourn a premier who didn't do much for them so much; it makes a lot more sense that it is essentially a rebuke of the CCP and Xi personally.
He had no real power to make any changes. But, he was an economist unlike brain dead Xi. And, he was pretty pragmatic.
Xi is just a zealot.
Former Premier Li was perhaps one of the very few non-REDS at the most senior level of the CCP with a brain and intellect that saw the millions of Chinese people not as leeks but rather as China's greatest assets for its future. A truly decent man! 1104 2024 UK
Li Keqiang act based on economic fundamentals and pragmatism which require longer term pain but Xi want to act based on political ideology and communist partisanship, that’s the problem. So the political intervention is the root of economic failure.
U.S. had been through multiple bank and financial crises through its 247 year history at mostly localized (including state) levels. But its state and federal always allow for banks failure as well as saving the stronger ones while acting pragmatically to learn its lessons to become more resilient.
The problem is China doesn’t allow any failure and doesn’t want to learn any painful lessons.
U.S. suffered from economic crises and hunger but never a huge famine whereby people had to die en masse (only 1 remote case in Alaska).
Who in their right mind would buy a 50 year bond at 3%?
A very uneducated person who doesn't know finances or is poor & that's their only hope. I don't know, but that's my guess.
Little Pinks ? Buy in the kids' name. When they grow old can use the money. Put minimum sum. Only worry is inflation. Maybe it will be very little value.
@@ang1852 very good point! in 50 years will your money be worth anything? if the currency reduces in value by just 3%, or the cost of everything rises by just 3%, you are already losing your saved money :
State owned institutions.
Every one is discussing money rebound,do you really think every one will get even their money after 50 years,just think 70-80 age,your poor physical health,even if your family helps ,you all know China has rampant unofficial dictatorship like confiscating their e bikes and forcing them to buy new ones
Former Premier Li Keqiang was perhaps one of the very few non-REDS at the most senior level of the CCP with a brain and intellect that saw the millions of Chinese people not as leeks but rather as China's greatest assets for its future. A truly decent man! 11 04 2024 UK Thumbs up to the researchers reader and team for this quality content.
It will be hard to redeem a fifty year bond when you were starved to D in 2024/25.
It's borrwoing from the babies born today and before. They bear the future burden and could be poorer. Nothing technically wrong tho.
@@kenw5104 wait a minute, so that's what they're doing!????
Then I truly do feel sorry for the younger generation who'll have to deal with this bs future debt.
@@2packrm781 china has always been the type to look at the long term planning
because its how they think and do things and how they struture and maintain such a long empire for so long
it has its nuances and problems of course but they arent wrong when they plan that far and for the long term
@@Kevin-qj7fp sheesh... & thank you for breaking it down to me.
yeah i'm pretty certain that's what they're banking on
There is no point in finishing unfinished projects when the last round of projects are unused and abandoned.
i imagine the point is to give new contracts to your friends or associates, merely for everyone to exploit as much as possible, for as long as possible. getting a job finished was probably never part of the plan
CCP is toast , why can't they just allow capitalism ? Haven't they made enough?
It's all about power. They don't care how many people starve to death, lose their jobs, lose everything they own, they don't care, as long as they remain in power...
It's why they want control of things, but they fail to limit their (mis)handling(s) of things that they forget to put limits in place to make sure they don't end up in jams of their own makings.
because winnie.
Yeah. You can’t print 1/3 of the economy’s cash if you’re trying to hide the problem inside bank accounts and defaulting loans. Most real world solutions involve a form of bailout from the government to buy the debt from the bank, which could backfire and expose the size of the debt. And that’s probably the biggest reason why it’s not going to work.
Hiding the problem is more important than the lives of billions of people. Because if the Chinese people understood the amount of money that was paid to bureaucrats, they would know why the economy is broken.
It is definitely above the trillions of yuan once you factor the real estate corruption and debts. Especially debts that were created to hide from scrutiny.
I don’t think the M2 or M3 figure is realistic because some of the numbers are privatised. The amount of unpaid or deferred/hidden debt is probably higher than the amount of cash available in the “public” system due to interest payments being avoided. And it’s possible that the banks are exposed to impossible levels of debt in loans they fabricated to cover up other issues with defaults and hiding military expenditure.
It’s a manifest problem that may be difficult to print money for, because the loans exist, but the money/assets do not.
The banks are likely holding a higher amount of hidden debts because of the three red lines catching up with their own flaws, they loaned out too much money, perhaps even more than the government is aware of.
The problem is deeply entrenched in the spoils and “battle” mindset of taking benefits from others. The robber baron model works, until you have to do actual work or labour, and then things stop working. The concept of the trickle down effect only works to show the problems with the system, because you can’t drive a nation with capital being funnelled into the rich.
The economy is driven by the poor, and uplifting the people, or you end up with a debt based system.
The cash being printed won’t make workers more productive or companies buy more local products. The “trickle down” effect is stalled.
Either you default , or you secure/obligate the debt at the bank.
Printing money doesn’t pay debts, it makes the debt more expensive because larger companies won’t pay the money forward, they will reverse the income to pay off debt first.
You are basically filling a hole by flooding the entire city and hoping the water makes it into the hole eventually. It will just spill into the gutters and rivers, ie paying back debts instead of moving the economy around.
Well, they can print money. The banks are state owned, the printing presses are state owned and china operates under a veil of mystery and censorship. So helicopter money could be printed and shipped to banks in order to prevent/cope with bank runs and local government can have emergency cash shipped to them as a bail out. Obviously it won’t work as it will turn china into Zimbabwe and millions of yuan of people’s savings will be wiped out in short order. But that might be exactly what happens.
Thank you for the break down of what we're witnessing with the Chinese Econ & how the gov is not helping & how Zemin's policies have also taken a huge chunk toll on China as well.
11 April 2024 AD / AH :
I am 61 .
Almost all my life I have observed , and studied China . I have tried to sincerely meet with and chat with Chinese people .
I do not know anymore , all of it is depressing , mentally and emotionally depressing .
Maybe you are the problem? +15 years in China and I have 0 problems to communicate and understand them, with their difficulties of course. Jia you!
@@carlosmiranda5091
AH / 16 April 2024 AD :
It is clearly observable that hundreds of millions of mainland Chinese people have been suffering , on a daily and nightly basis , FOR DECADES . Millions of Americans feel sad for them . Here in America 🇺🇸 , many of us have been interested in China 🇨🇳 since around 1900 . Our universities offer deep education about China and award certificates of diploma . Chinese restaurants are very popular here , they are usually full of customers . A PRC premier taught at university for several years , he was very popular , and sometimes visited our president to chat and discuss .
Mainland China 🇨🇳 also has a heavy and severe problem with the pollution and toxification of its soil , waters , and air . Public health care is minimal and/or sub-standard . It's sad and depressing .
Further , there are credible reports that the PRC is polluting and toxifying the Mekong river , exporting and expanding its programs of insensitivity and misery .
I believe you should be restricted from leaving the PRC , and be confined to one city or county there , for the remainder of your existence .
Rise up People of China
The extravagant foreign loans have not really seen return of investment...Africa, S.Americas, Carribeans, Polynesian Islands, Sri Lanka...are poor countries...it will end dead loans.
Tough facts from the coolest narrator. 😎👍
Fantastic episode loves the clarity and conciseness
Borrowing from the future to be irresponsible now is nothing new china is just terrible at doing it.
Most major cities in the us were able to promise over generous pensions instead of current wage hikes so the burden would hit years later when that politician was out of office. So many cities went bankrupt because.they were miles away from being able to pay past borrowing and obligations. Some cities were not allowed to sell bonds past a certain rate so they creativel promised so.e bonuses ar the end- always some hokey book keeping between unions and lying politicians.
But China is just lying politicians lining thier own pocketa while the people starve.
Anyone rlse notice how they are going back to full communism?
0:01 Li Keqiang was a true fighter for the Chinese Ppl
11:52 what a smart kid, uh guys?
14:54 dang😶😧😬
15:41 the answer is right there, but Xi thinks differently & it's why he refuses to understand Li-Conomics ⭐16:51 - 17:12
18:21 oh man for the Chinese Ppl😬😬😬
19:19 there's the problem Xi & Li, it's 'who's being seriously practical when maintaining the system & who's affected by it?'
20:36 Li Quang is trying to figure out what to do & Xi chooses to humiliate him.
21:27 so no one is allowed to mourn?
22:00 even the military (China's PLA) is pissed off by the CCP, dang😬😬
Haha you do some good time stamps. Bravo!
@@pablosskates7067 thanks & you're welcome😊
coup de tat
China Insights, I loved this video so much, I had to hit the like button!
You are so deep !
Our family fortune lol. That says a lot.
The battery industry is already more than half shut downand might be more than 90% over capacity while lithium mines in China are already priced out of competitive market compared to several other places.
Electiric cars have more than 100 acres of cars supposedly sold but registered to phantom owners for the last 3 consecutive years which are being sold for 10% of list price or will be junked.
Most of ji's plan relies on some undiscovered tech which will have a miracle save while the industry they do have produces an inferior product from companies with a known history of cheating and scamming their customers any way they can.
i love that plan compared to making sure people can afford to live, or other such sensible things.. just create a new technology, and a whole new job/income sector will appear..
yeah, great plan bro lol why don't u start us off and list a few new, undiscovered technologies from the top of your head? XD
The Pump and Dump plan
Government revenue comes from taxes. That’s where the interest payments on these debt instruments comes from. Unless they use the debt to commensurately raise the productivity of the country as a whole, past the interest rate being paid on those debts (doubtful, given past evidence), buying government debt is little more than a voluntary tax. The populous may pay taxes to pay the interest on the debt the populous itself owns. Sure, it CAN work for the individual, sometimes, but as a whole it’s a terrible deal.
Thank you
China real estate is colapsed, more peoples are unemployed, foreign companies either closed down or shift to other countries, more peoples are going bankcrupt as unable to pay their their hoyse mortgage.
If they borrow money by making more of it, by not taking existing money but making a loan with computer, if they dont pay back, does anyone lose? If they pay back they generate that much new money, do they make new money to loan it away? No need to use tax money for loans this way, they can tthen after getting the payment back, delete the money and keep interest, so total money goes up by interest if they want or just delete all, no loss to anyone?
Why chinese people losing money, their currency only circulating inside china
"New Quality Productivity." This sounds like the campaign rhetoric of some Western politicians who constantly call for high tech and high paying jobs without understanding how to achieve that. Meanwhile, they advocate policies which contradict those goals, namely high taxes and excessive regulation.
Its like germany in 1940s😢
How so? Germany spent the first half of that decade neck-deep in the biggest shooting war in the history of the world, then spent the second half split in two and utterly ruined by said war. However, if you were to put it this way, I might agree with you: Xi Jinping seems to be huffing his own farts and putting his faith in high-tech "Wonder Weapons" that don't exist and probably never will exist to turn around his country's sinking economy. His Premiers, like Hitler's generals who understood the practical realities of war, have understood that all of that is just smoke and it won't turn the economy around.
1930s, hype inflation, we'll see! CCP Xi's, the lone wolf warrior! (is that a zombie, Wolf?) 🤔✔️
Forcing banks to loan to projects that may have significant cost overrun with unknown sales potential, is not sound economic.
Thanks.
great insight
This reminds me so much of the story told in Conrad’s book Heart of Darkness
No problem. Just print more money.
No problem. The XiXiP is stockpiling gold.
They are, and the scary thing is that it doesn't seem to be working as intended. People still aren't spending, and a devalued currency isn't helping exports.
@@douglassun8456 When you are stuck paying a mortgage on an apartment that might never be built (or has depreciated 30% in value), spending on non-essentials is pure folly. Most people have been robbed, and I suspect that they realize it.
👍👍👍👍👍
prayers
China main problem are CCP and Chinese Banks. First, Chinese banks have very complicated loan process and not willingness to give loans. Another problem, Chinese Banks making very difficult to withdraw own money.
Why do you blur the faces and emblems of the ccp? Is it to avoid CZcams censorship or is it because these things are offensive?
Because it makes the CCP lose its credibility, professionalism, class, style, & role on the world stage as a strong econ in the world🌎.
Just take it as a yes.
Yeah, the vibrant Reds/LPs are really good and nitpickling laws down to a T and use legality as both a shield and a weapon.
My. Comment. Was. Taken. Down. For. Tellin'. The. Reality. Of. How. The. Qt. Is. Makin'. The. CCP. Lose. 'F.A.C.E'.
better to be safe than sorry- if u don't show any faces, i don't think a privacy complaint to take down the video will fly.
Borrowing from future investment…. How nuts can you be?
I loved the child in 11:50 . If I were to bet on one person on Earth to become the president of ADB in the future, it'd be that child :)
Next thing new borns will be forced into signing souls for 100 year bonds
I mentioned it in my comment, all the loans Beijing made for the B and R Initiative, are they accounted for in the facts and figures spoken of in the video? I think those loans are going to come back and bite them in the @ss.
Is this any different then the US Debt problem?
I'm completely convinced that Xi threw Li Keqiang out of a Russian window.
1:14 - 1:17
GDP
Growing Debt Penalty
BYD
Beijing You're Done
Yeah, they have a huge problem & they're ending towards a dead-end.
yay those debt loan countries will be free!!!!
Self-criticism report. In other words, a struggle session!
Do China have any hope with ccp?
Even after his death, Li's shadow still hung over Xi Jinping
Christopher Robinson you hit Pooh too hard on the head nice Pooh Pooh🌀Chineeze diaperz leakin🥴
The problem with Xi remaining in power will be verified if Xi's wife suddently leaves the country for the USA or Canada to join other relatives already living in western countries.
lol it would be so rad if he actually read these
No money means no mommy
13:17 Textbook example of "positive feedback" running amok. 👍
What does a Chinese premier even do?
You’re mispronouncing “Keqiang”, part of that man’s name. You’re adding an unnecessary ‘R’ sound after “Ke” that just shouldn’t be there.
“Ke” is pronounce like the English word “could”, minus the ‘d’ sound at the end.
And the closest an untrained America will be able to get to pronouncing the second syllable, “Qiang”, is like “Chong” from “Cheech & Chong”.
No narration no view
Since China is in a deflationary spiral, the PRC should (strategically) just print pure fiat money and direct it towards bailouts & consumption. They are in the rare & unique situation where that would do a lot to solve problems. Then they can use debt when inflation starts to get over targets.
5:10 Real estate is roughly one-third and considered the fastest growing sector in the PRC's economy. Its economy couldn't rely just on manufacturing, finances like it used to for future high growth. They should focus on more policy measures and incentives to stimulate the real estate sector.
You…have no idea what you’re talking about little bot.
which real estate sector? that one that absolutely collapsed, leaving everyone with bank loans for housing and no place to live? yeah that one's super sweet! locals are uber keen to invest there! /s
@@outseeker I'm pretty sure he forgot to leave the /s at the end. That's all I can come up with, because surely no one would be that stupid at this point....would they?
@@pennycandyys idk tbh i have no way to be certain XD feels like one of the many shill accounts just putting things out there tho
Dont worry , China have 1 trillion dollar each year in surplus with the world , 500 billion with USA alone. China invests in BRI 5 trillion dollar. Local goverment debts never be a problem , it all invest in good sectors , manufactures especially in high tech manaufactures. China have 800 billion dollar in US TBond , 10 trillion dollar in foreign reserve. About 10 trillion dollar in gold bars.
Don't worry you say? You obviously don't know much about economics, don't you.
@@robertofernandez7773 Many source you can access and that show anything you need to know. Are you so backward or totaly depend on western mainstreem media ?.
Oh look, another bot!
@@pennycandyys You are so pathetic , you cant take the truth, a real truth nothing but the truth. I think you must be under age maybe 5 years old , just learn to said " bot ".
@budisuwandhi6818 no my friend. I know more about china than you might think. However, reserves and all look cute, but they're useless when the economy starts on an auto destruction cycle, I would rather look into western media, than relying on ccp data that they've agreed in several occasions that is fabricated. China's government said that, not western media. At least we can check both sides of the situation, unlike the Chinese citizens that can't even check anything the ccp approves. China is a facade and you know it. It might bother you, but buried in the deepest of your heart, you truly know too.
Problems in the US are terrible also. Probably worse. US has no national togetherness. An economic downturn could easily spiral into civil war.
Ah! There it is, the obligatory, ‘Oh but the US-!!’ comment.
@@pennycandyys Comrade did not think it through. China's export driven growth is based on assumption that the US goes on permanent shopping spree. So stating that the US may have some problems is not exactly reassurance for Chinese economy...
According to this video, China's problems are more serious than the US's. China has national togetherness? I'm not sure about that. The US has had even more serious economic problems before in the late 1920s and early 1930s. It didn't result in war.
KARMA BULLYING SMALL COUNTRIES AND USA BIG ENEMY
🎉
Defend their "rights" 😂