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发表于 2014-5-21 05:08:36
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The supply of money will increase. The money they borrow is people's saving. Currently, both property and stock market are too high and peoples investment will slide. But there are still many reasons cause inflation and people's saving will keep increasing. Saving is dead money in china in short future. Using this kind of money have no difference with printing new money. Using this money to buy USD give commercial banks more money to "play" with. Until these debts are due, I do not think government and bank can really "earn" money to pay back. Then they will print new money. There must be some reason government would rather borrow than print new money, maybe it is less poision and the pressure can release slower. |
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