Talking about the situation where the occupant loses their job and has no means of keeping up the mortgage repayments. The bank can foreclose their house (sell it) but if the house is worth less than the outstanding loan amount, the banks are still out of cash.
So for now, it depends on whether we can provide enough jobs. If there is really large-scale unemployment, not to mention real estate, the entire society will collapse. Fortunately, due to the recent rapid growth in exports, the employment rate can remain stable. Then the problem is gradually limited to a large number of houses that cannot be sold. I think a more reasonable way is for the government to purchase these excess houses for social security. After that, the real estate developers use the money to repay their loans from the bank. This will ensure that real estate prices tend to stabilize and absorb the huge amount of unsold houses on the market.
Houses being worth less than the loan is a ticking time-bomb though, it can go on for years and then suddenly boom, it all collapses. Could be something unforeseen like sanctions, due to various wars, or another factor. All options involving the government paying money are potentially hazardous as they increase national debt, which tends to lower currency value, cue inflation, as well as increasing interest rates on the money the government borrows due to a lower credit rating.
At present, the measures that can be seen are to reduce the interest rate of existing housing debts from 5% to 3%. As you said, the housing debts of many people are actually higher than the actual housing prices. This can only be said to be an inevitable result of the decline in real estate prices, because real estate prices cannot maintain an upward trend forever. This problem can only be solved gradually in the long future.
Well your debt has increased to 84% and is on a rapid upward trend. Your are also running an increasing and large deficit. These are not positive economic indicators.
tradingeconomics.com
tradingeconomics.com
Well your debt has increased to 84% and is on a rapid upward trend. Your are also running an increasing and large deficit. These are not positive economic indicators.
China Government Debt to GDP
China recorded a Government Debt to GDP of 83.40 percent of the country's Gross Domestic Product in 2023. This page provides - China Government Debt To GDP - actual values, historical data, forecast, chart, statistics, economic calendar and news.
View attachment 36569
View attachment 36570China Government Budget
China recorded a Government Budget deficit equal to 5.80 percent of the country's Gross Domestic Product in 2023. This page provides - China Government Budget - actual values, historical data, forecast, chart, statistics, economic calendar and news.
Most of these are debts borrowed by local governments from state-owned banks, and most of them can be resolved relatively well through negotiation, which is the so-called local debt. We have seen many such cases in the past few years. A city in Guizhou even announced that it would extend its debt for 20 years and only pay interest in the first ten years. Moreover, compared with Western countries, where the government debt ratio is over 100%, ours is still relatively normal.Well your debt has increased to 84% and is on a rapid upward trend. Your are also running an increasing and large deficit. These are not positive economic indicators.
China Government Debt to GDP
China recorded a Government Debt to GDP of 83.40 percent of the country's Gross Domestic Product in 2023. This page provides - China Government Debt To GDP - actual values, historical data, forecast, chart, statistics, economic calendar and news.
View attachment 36569
View attachment 36570China Government Budget
China recorded a Government Budget deficit equal to 5.80 percent of the country's Gross Domestic Product in 2023. This page provides - China Government Budget - actual values, historical data, forecast, chart, statistics, economic calendar and news.
All borrowed money is a liability of the government ultimately.
Which is what you would expect given the relative sizes and the nature of the area, i.e. tech., AI etc.
I vaguely remember the New Delhi TV report,
Chinese Main Battle Tank Breaks Down During Public Demonstration
Posted 2 days ago
The Chinese main battle tank VT-4 broke down during the Zhuhai Air Show, where it was trying to show its powers and capabilities to the international public.
VT-4 is a Chinese main battle tank, made specifically for export markets. Image credit: Mztourist via Wikimedia (CC BY-SA 4.0)
The Zhuhai Air Show is the largest event of its kind in China. Obviously, it is meant to promote cooperation in the sector of aviation, including military aviation. All of China’s allies participate in this event and major manufacturers are trying to present their latest technologies and sell their most advanced products. The presentation of the VT-4 main battle tank may seem out of place here, but it is a small addition to the show for the crowd that might be interested in defence tech.
The VT-4 is a Chinese main battle tank, built by Norinco specifically for overseas export. China’s own forces are not operating this specific model. The VT-4 entered service in 2017 to try and grow China’s presence in the international defence tech market. At the moment, the VT-4 is in service with Nigerian, Pakistani and Thai forces, but China would like to export them more.
The VT-4 has a smoothbore 125 mm gun with an autoloader, which allows it to operate with a crew of 3. It also has a machine gun. It is covered with composite armour and weighs around 52 tonnes. The top speed of the VT-4 is 70 km/h. With a reported price tag of 4,9 million USD, it is certainly not the cheapest machine on the market, but it is way more affordable than the Western or, for example, South Korean main battle tanks. Just that it doesn’t always work that well.
The VT-4 broke down during its presentation in the Zhuhai Air Show, Defense News Nigeria wrote on X. According to them, the tank stood still for the rest of the show. In the video attached to the post the tank is seen struggling to climb a steep incline, rolling in reverse and coming to a stop.
Since there was no second try and the VT-4 didn’t just drive around the obstacle, it is safe to assume that it experienced a mechanical failure during a public display meant to increase sales. That inevitably will lead to valid questions of reliability. Especially since people haven’t forgotten how another Chinese main battle tank Type-96B broke down during the Tank Biathlon competition in 2016.
These public demonstrations are magnetic for mechanical failures and not just in China. Russian tanks often break down dramatically in the premises of May’s parades in Moscow. However, potential export partners are unlikely to base their decisions solely on such incidents.
Written by Povilas M.
Sources: Tech.wp.pl, Wikipedia
www.ndtv.com
I vaguely remember the New Delhi TV report,
After Both Tanks Break Down, India Knocked Out Of International Drill
The Indian Army has been knocked out of the high-profile international tank biathlon taking place at the Alabino ranges in the Moscow region of Russia after both the main and reserve T-90 main battle tanks developed mechanical problems.
