It's an economic effect. I used to understand it better but the key thing to remember is that builders and the government are not the same people. It's not like the chinese government is planning each building.
Basically the Chinese government pays builders to construct rooms. The more rooms the more money they get even if nobody buys.
wrong. the only effect created by the building over SIX HUNDRED of this ghost cities has been massive debt and a giant real estate bubble.
'What it means is that China’s massive stimulus from 2009 to 2011 sunk money into projects that are generating little or no returns. The continuing gush of credit allowed companies to paper over these losses by covering their bad debts with new loans…But whatever the size [of China’s indebtedness], it’s now big enough that the system needs colossal amounts of liquidity even to keep above water.' https://finance.yahoo.com/news/china-ghost-cities-epitomize-problem-175214118.html
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testeverything ago
It's an economic effect. I used to understand it better but the key thing to remember is that builders and the government are not the same people. It's not like the chinese government is planning each building.
Basically the Chinese government pays builders to construct rooms. The more rooms the more money they get even if nobody buys.
Oh_Well_ian ago
Baloney. That is exactly what we have been told about these cities since they started going up.
Didn't make sense then and it certainly makes no sense today.
Bottled_Tears ago
So you believe everything you’re told?
It does make sense you’re probably just 15 with zero economic understanding.
Oh_Well_ian ago
lol the JEW BOY is coming unglued
Tallest_Skil ago
The audacity of this fucking kike.
bb22 ago
If something doesn’t make sense it’s natural to question it you foreskin-eating kike.
Tallest_Skil ago
Thanks for asserting something that no one questioned, yid.
testeverything ago
As a policy its retarded but that it would produce that economic effect isn't baloney.
ADVChina covered it and he showed a small village next door that was taking advantage of the same policy. https://hooktube.com/watch?v=BcyYyyaPz84
Oh_Well_ian ago
wrong. the only effect created by the building over SIX HUNDRED of this ghost cities has been massive debt and a giant real estate bubble.
'What it means is that China’s massive stimulus from 2009 to 2011 sunk money into projects that are generating little or no returns. The continuing gush of credit allowed companies to paper over these losses by covering their bad debts with new loans…But whatever the size [of China’s indebtedness], it’s now big enough that the system needs colossal amounts of liquidity even to keep above water.' https://finance.yahoo.com/news/china-ghost-cities-epitomize-problem-175214118.html