Except all the borrowing is in Yuan and People's Bank Of China prints all the money they want to, hands it to the banks, tells them what industries to lend to and on what terms and shoots corrupt bankers. The government, and eventually the taxpayer is not on the hook for the bailout like they are in the west. In China, banking is basically partially privatized central planning. This difference in how Chinese banking works vs western banking is a source of endless cognitive dissonance in the western financial press. They can't understand how a capitalist financial system could be set up differently where the government's finances aren't subject to the whim of the private financial industry.
As James Carville once quipped : "I used to think that if there was reincarnation, I wanted to come back as the President or the Pope or as a .400 basball hitter," he said. "But now I would like to come back as the bond market. You can intimidate everybody. [1]
As James Carville once quipped : "I used to think that if there was reincarnation, I wanted to come back as the President or the Pope or as a .400 basball hitter," he said. "But now I would like to come back as the bond market. You can intimidate everybody. [1]
http://www.nytimes.com/1994/06/12/weekinreview/ideas-trends-...