Let regions go bankrupt, Chinese central bank official says

Section:

From Bloomberg News
Sunday, December 24, 2017

A Chinese central bank official said China should allow local governments to go bankrupt to help rein in regional authorities' excessive borrowing.

A case like the bankruptcy of Detroit would convince investors that the central government is really determined to dispel beliefs of an implicit guarantee for regional authorities, Xu Zhong, head of research bureau at the People's Bank of China, wrote Monday in an article in the China Business News. Just a couple of days ago, China's finance ministry pledged to break the "illusion" that Beijing would bail out local governments' hidden debt.

Their calls for limiting local borrowings are in line with the central government's financial policy for 2018. President Xi Jinping said this month that a priority for next year is to "effectively" control leverage and prevent major risks. China's central bank governor Zhou Xiaochuan in October urged to guard against local government financing vehicles and other means being used "to disguise debts" and argued for fiscal reforms. ...

... For the remainder of the report:

https://www.bloomberg.com/news/articles/2017-12-25/pboc-official-says-lo...



ADVERTISEMENT

We Are Amid the Biggest Financial Bubble in History;
When It Bursts, Bullion Owned in the Safest Way Will Protect Wealth

With GoldCore you can own allocated -- and most importantly -- segregated coins and bars in Switzerland, Singapore, and Hong Kong.

Switzerland, Singapore, and Hong Kong remain extremely safe jurisdictions for storing bullion. Avoid exchange-traded funds and digital gold providers where you are a price taker. Ensure that you are outright legal owner of your bullion. If you do not own segregated bullion that you can visit, inspect, and take delivery of, you are exposed.

Crucial guides to storage in Singapore and Switzerland can be read here:

http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore

http://info.goldcore.com/essential-guide-to-storing-gold-in-switzerland

GoldCore does not report transactions to any authority. Safety, privacy, and confidentiality are paramount when we are entrusted with storage of our clients' precious metals.

Email the GoldCore team at info@goldcore.com or call our trading desk:

UK: +44(0)203-086-9200. U.S.: +1-302-635-1160. International: +353(0)1-632-5010.

Visit us at: http://www.goldcore.com


Join GATA here:

Vancouver Resource Investment Conference
Sunday-Monday, January 21-22, 2018
Vancouver Convention Centre West
Vancouver, British Columbia, Canada
https://cambridgehouse.com/e/vancouver-resource-investment-conference-20...

GATA reception
Lions Pub
888 West Cordova St., Vancouver, British Columbia, Canada
5-7 p.m. Monday, January 22, 2018

Mining Investment Asia
Monday-Wednesday, March 26-28, 2018
Marina Bay Sands, Singapore
https://www.mininginvestmentasia.com/

Mines and Money Asia
Tuesday-Friday, April 3-6, 2017
Hong Kong Convention and Exhibition Centre
https://asia.minesandmoney.com/

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16