I don't know much about Evergrande, but given the origin of this blog did want to share some speculation. First, their debt is denominated in dollars, so unlike Russia in 98, default may not be optional (Russia could have printed rubles if it wanted). CCP may have enough US$ to make good on Evergrande obligations, but whether they do so, and what they ask in return, is unclear. When put in the context of China's forex dollar holdings, Evergrande's obligations seem small.…
Short and worth a read in full. (winterspeak's blog has been idle for 54 months until now if you are wondering about not seeing him linked to here.)
winterspeak
Evergrande -- redux of what?
winterspeak
Evergrande -- redux of what?
See also
China Steps In To Ensure Evergrande Funds Used To Complete Housing Project, Not Pay Creditors
Tyler Durden
Wow! This post makes my day. I'm tearing up as I write this.
ReplyDeleteI've been thinking about "winterspeak" the last few days. He was one of the first people who I started following when I first discovered MMT. When I couldn't see his posts anymore (the last post before this was in 2017), I thought he was dead or something. Steve Randy Waldman (interfluidity.com) said this about him:
I've been flabbergasted by just how good Winterspeak has been lately. I don't agree with all of his conclusions, but the perspective he's developing is quite beautiful, and very useful. I'm going to highlight a few of the bits I really like, and add a bit of spin.
source: Winterspeak wonderland & miraculous Mencius