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Joined 2 years ago
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Cake day: June 9th, 2023

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  • China uses debt differently. Local governments are not allowed to borrow money directly, so they use companies to borrow money for public works. The system is called local government financing vehicle(lgfv). They usually get land, which they sell or lease to get some money or to secure loans. It is usually understood that local governments would bail lgfv out. The issue with lgfv is that they owe more money then the GDP of China and it is secured with mostly real estate, which is somewhat on the edge of crashing. Chinese real estate is crazy overvalued, so popping that bubble can hurt China badly.

    The difference is that China is in a trade war with the US. The US is in a trade war with the rest of the world.













  • The 1/10 is pretty much what could reasonably be taxed from a simpler medieval farmer without them starving.

    Also today we do have systems like social security. There are also quite a few things very similar to commons. Roads, parks, public land and so forth come to mind. I am pretty sure, if you created something like common land for farming most everybody would not use it. At least judging by the number of gardens trying to grow food.









  • The old American playbook was to ally with some local elites and then use media, secret service and economic support to bring them into power. Military force and hardcore sanctions were a tool used, if that did not work.

    Russia prefers to use military force to force other countries into doing what they want.

    China seems to work mainly with economic pressure, corruption and secret servcie work to set up favroable local elites. Their media game is not as good as the US, but TikTok is a clear sign that they are working on it. So far hard force is pretty rarer.

    To me China looks a lot more like the old US playbook. They know the Russian one is not as good, as they saw European Empires collapse by using it.