What China’s interest-rate muddle says about its financial system

Why is it so hard for the government to let go? The explanation can be found in two striking facts about Chinese interest rates. First, they are much lower than one would expect for an economy growing so quickly, coronavirus notwithstanding. The real one-year deposit rate is negative. This is not new. China has long been an exemplar of financial repression, limiting savers’ returns in order to make cheap funds available to finance sky-high investment.

In the Chinese context it has a point. Where banks go, so goes the economy. Banks’ assets are worth 175% of, more than in any other country, according to a core measure used by the World Bank . Many analysts think that China’s banks can expand their loans by about 10% a year while making big enough returns to preserve their capital buffers. In a normal year these new loans would be expected to generate economic growth of about 6%, with a mild rise in total indebtedness.

E, ?

E, New Pressures

THIS IS THE BEST TIME for us to create a world - without money - without banks - without stock exchanges - without greed - without corruption - without poverty - without homelessness - without millionaires - without billionaires BEFORE COVID-19 is going to create trillionaires!

The entire financial system is corrupt garbage based on lies and manipulation and abuse of people. Central Banks are the equivalent of Satan.

China’s interest rate muddle says that the Chinese financial system will continue to muddle through as it has done for decades.

Interest rates in the industrialized economies are liberalized. Why is it so hard for banks to let go of government bailouts?

Interest rates in America are not yet liberalised. Why is it so hard for the government to let go?

join my discord please !

That question could be asked if everything the CCP does.

The CCP tightly holds onto China virus numbers, too!!!

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