A lot of that was also due to them holding a lot that debt in dollars, at least if I remember XHS’ analysis.
A long running theory in the news mega is that the US govt has been pushing the Fed to manipulate interest rates to apply/relax pressure on Chinese local govt., usually to extract concessions on things like rare earth metal exports.
I’m talking about local Chinese authorities not central govt. They have their own debt crises going on and it’s extremely related to property price crashes. I think they basically borrowed a ton of money to build developments where no one wants to live or something
A lot of that was also due to them holding a lot that debt in dollars, at least if I remember XHS’ analysis.
A long running theory in the news mega is that the US govt has been pushing the Fed to manipulate interest rates to apply/relax pressure on Chinese local govt., usually to extract concessions on things like rare earth metal exports.
I’m talking about local Chinese authorities not central govt. They have their own debt crises going on and it’s extremely related to property price crashes. I think they basically borrowed a ton of money to build developments where no one wants to live or something
Ah i thought the dollars were held at local govt too my bad