Linn Maung
The Chinese government’s decision to issue ultra-long term National bonds, amounting to approximately 140 billion US dollars, has sparked public debate. Critics argue that this move, which essentially borrows from future generations, is a desperate attempt to sustain fiscal stability amidst economic challenges. However, the strategy raises questions about the government’s intentions and its ability to repay these debts. This, coupled with political and economic uncertainty, has led some to predict an inevitable collapse of the regime.
The Chinese Ministry of Finance recently announced plans to issue one trillion Yuan approximately 140 billion US dollars of ultra-long term special National bonds this year with the longest term being 50 years sparking wide spread attention from the public. Some believe that China borrowing debt for 50 years from its descendants is a strong sign of the end of the CCP, many people are expressing dis-satisfaction pointing out that it would be their grandchildren who could benefit from these bonds. The CCP government’s decision to issue Ultra long-term National Bond at a time when the economy is facing challenges raises questions about its underlying intentions.
An article published on the Quantum Leap platform overseas under the title strong signs of the collapse of the dynasty analyzes that these ultra-long bonds carry a strong political signal. The article believes that ultra-long bonds are equivalent to collecting future taxes in advance quantifying future returns into bonds borrowing money from the future regardless of whether there will be any returns in the future.
Once this president is set bonds with terms of 80 or 100 years may also be introduced. The essence of ultra-long term National bonds is to use future overdrafts to fill the current fiscal deficit, the author analyzes that the introduction of ultra-long term National bonds will inevitably led to the complete failure of fiscal constraints on economic activities.
Governments at all levels will be more unscrupulous in borrowing money for projects and more crazy in corruption in projects, the purpose of the CCP issuing ultra-long National bonds is to attempt to keep the fiscal Hull rolling along the conveyor belt of ultra-long national Bonds in the hope that the debt chain can be extended forward sustainably. In this way the debt Market will never explode it’s simply wishful thinking, for example when the Kuomintang retreated to Taiwan in 1949 taxes in some parts of the China Mainland were collected until1999 which was also 50 years. Therefore, the author believed that the issuance of ultra-long term National bonds by the CCP is one of the strongest signs of the end of the dynasty.
Economically the collapse of a Dynasty goes through three stages, first -the depletion of accumulated wealth then desperate plundering of the present and finally over drafting the future. When it comes to the last step the Dynasty’s downfall is irreversible as were all dynasties in history the article States 50-year ultra-long term National bonds are tax on intelligence imposed by the CCP on the people. A few days ago another type of ultra-long term National bonds 30-year term began trading on the market with the highest price reaching 127 Yuan, by the end of the day the price had dropped back to the original price of 100 Yuan and the market lasted only one day. Those who bought at the high of 127 Yuan suffered a loss of up to 27% in just one day.
This tax on intelligence is essentially a machine for harvesting people’s wealth, if you believe in its future you buy if you don’t believe it has a future you don’t buy the CCP hopes that every citizen will be a taxpayer of the tax on intelligence. When the whole society realizes the true nature of the CCP’s ultra-long term bonds it will collapse like the gold Yuan coupons issued by the Kuomintang party in Shanghai back then and eventually become a worthless piece of paper.
Dr Li Hengqing, a Chinese American economist living in the United States recently told Epoc Times that the purpose of the CCP issuing ultra-long term National Bonds is to encourage people to invest or resolve government debt with savings that are not used for consumption. But the problem is that under the current political and economic turmoil issuing ultra-long term National bonds of 20, 30 or even 50 years the CCP actually has no intention of repaying the principle. Furthermore, who can guarantee that the CCP regime will not collapse during this period.
The issuance of ultra-long term National bonds by the Chinese government, despite economic challenges, is seen as a desperate measure to sustain fiscal stability. Critics argue that this strategy, which essentially borrows from future generations, could lead to fiscal irresponsibility and corruption. The bonds’ poor performance on their first trading day further fuels skepticism. Amidst political and economic uncertainty, doubts are raised about the government’s ability to repay these debts, leading some to predict an inevitable collapse of the regime.
