http://feedproxy.google.com/~r/MishsGlobalEconomicTrendAnalysis/~3/zcoyaiPW57Q/china-instructs-banks-to-roll-over-17.html
A few years ago local Chinese municipalities had little debt. Today they have a $1.7 trillion mountain of it, nearly all of it financing economically non-viable projects in the name of "stimulus".
The proposed "solution" of course is to roll the debt over, while adding still more to the debt mountain, hoping things will get better.
Please consider China tells banks to roll over loans
China’s stimulus response to the global financial crisis saddled its provinces and cities with Rmb10.7tn ($1.7tn) in debts – about a quarter of the country’s GDP – and more than half those loans are scheduled to come due over the next three years.
Since the principal on many of the loans is not repayable, banks have started extending maturities for local governments to avoid a wave of defaults, bankers and analysts familiar with the matter told the Financial Times. One person briefed on the plan said in some cases the maturities would be extended by as much as four years.
Extending Maturities to Avoid Default
A few more details emerge in
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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