(Zero Hedge)—Every single day, we get a new story of another stealth bailout by China (since a bazooka stimulus remains out of the picture seeing how China pretty much used them all up by the time covid rolled out and pushed the country’s consolidateded debt to GDP to around 400%). Here’s another: according to Bloomberg, China is preparing to tackle the massive backlog of unpaid bills owed by local governments to the private sector, an amount of arrears some have estimated at over $1 trillion.
Of course, since there is no actual “loose cash” floating around in China, in another financial MC Escher painting, Beijing will need to take out more massive loans to repay bills that couldn’t be repaid because of too much debt. The government is considering asking state lenders and policy banks including China Development Bank to lend to local authorities so they can make the payments in arrears.
The amount of money under discussion would plug at least 1 trillion yuan ($140 billion) of debt owed to private companies in the first phase of a longer-term initiative. Officials aim to complete the task by 2027, according to the people.
What this means is that Beijing’s massive subsidy engine is about to go into turbo overdrive, and the world is about to be flooded with below cost crappy EVs and enough solar panels to cover the Sahara.
President Xi warned in a February speech made public last month that the government’s delayed payments to companies risks undermining people’s trust in the authorities. Underscoring the importance Beijing is placing on the issue, China’s top leader said unpaid bills could “cripple” affected businesses in the embattled private sector and was hurting “society at large.”
Of course, while the proposed assistance would offer relief to private-sector contractors, it would shift more risk onto state banks that already face rising loan losses, and is why gold just continues to surge day after day.
Local government-related entities in China are estimated to owe 10 trillion yuan, or about $1.4 trillion, to corporates and civil servants, equivalent to 7% of the country’s gross domestic product last year, according to economist David Li Daokui’s estimate. Hilariously, China’s GDP continues to grow at a fixed 5% every single year. Which means that the government is now directly funding all of the growth with even more debt!
Caitong Securities said in a report last week that China may allocate about 200 billion yuan in special bonds this year to settle overdue payments to companies, based on projections for land-reserve and project-construction special bonds.
The nudging has already begun and in recent months, authorities have instructed the nation’s major banks to provide support for the initiative, including asking them to give short-term liquidity loans to regional governments to settle overdue bills tied to their affiliated entities. While such debts are typically not owed by the local governments, they are responsible for repayment because they are backing the entities in debt. The policy may need further backing from regulators, as bankers are concerned about potential risks and need some form of assurance they won’t be held responsible if the advances turn bad, one of the people said.
Bottom line: now we know why there has been such a surge in Chinese stocks in recent days; the simple answer: after the latest $1 trillion debt transfer from the private sector to the government, all risk assets will benefit while China’s consolidated debt is about to explode even higher, which also means that the recent spike in gold and crypto isn’t ending any time soon.
Preparing for the Unexpected: Your Essential Partner in Health Readiness
In an increasingly unpredictable world—where supply chain disruptions, natural disasters, and global travel can leave us vulnerable to sudden health challenges—being prepared isn’t just smart; it’s essential.
That’s where Jase Medical steps in, offering innovative solutions that empower individuals and families to take control of their health with emergency medication kits designed for real-life scenarios. As someone who’s always advocated for proactive wellness, I was impressed by how Jase Medical combines expert medical guidance with convenient, customizable options to ensure you’re never caught off guard.
At the heart of their offerings is the Jase Case, a comprehensive emergency antibiotic kit priced at just $289.95. This powerhouse contains five life-saving antibiotics and five vital symptom-relief medications, capable of treating over 50 common infections—from respiratory issues and skin conditions to traveler’s diarrhea and more.
What sets it apart? It’s fully customizable with 28 add-on options, including a specialized KidCase for children ages 2-11, making it ideal for families.
Whether you’re stocking up for home emergencies or preparing for remote adventures, the Jase Case provides peace of mind with medications that boast extended shelf lives—up to five years or longer when stored properly, with studies showing 90% potency retention even after 20 years.
For those on the move, the Jase Go travel med kit at $129.95 is a game-changer. Curated by physicians, it addresses over 30 common travel ailments, from digestive upsets to minor injuries, ensuring explorers, hikers, and globetrotters can handle health hiccups without derailing their plans.
And for targeted concerns, Jase Medical offers specialized kits like the UTI Kit ($99.95), which includes test strips and treatments for urinary tract infections, vaginal candidiasis, and even jock itch, or the Parasites Kit (starting at $199.95), featuring compounded Ivermectin and Mebendazole to combat internal and external parasitic infections.
But Jase Medical isn’t just about one-off kits; their Jase Daily service provides an extended supply of your ongoing prescriptions, supporting hundreds of medications for chronic conditions like diabetes, heart health, high blood pressure, mental health, and more. This ensures long-term preparedness, safeguarding against factory shutdowns or extreme weather that could interrupt your regular supply.
The process couldn’t be simpler or more reassuring. Start by customizing your order online, then benefit from a thorough review by a team of world-class physicians who ensure safety and accuracy. In most cases, prescriptions are issued after a quick consultation—sometimes just a call to clarify allergies or needs—and your kit arrives discreetly at your door. While they don’t accept traditional health insurance, many customers use HSA cards, and refills are available for added convenience.
What truly stands out is the real-world impact. As radio host Glenn Beck puts it, “The supply lines for antibiotics already are stressed to the max. Please have some antibiotics on hand… You can do it through Jase.”
One satisfied customer shared, “It could have been a nightmare. Instead, the best trip we’ve had,” after their kit turned a potential health crisis into a minor blip during a family vacation.
In a time when health uncertainties loom larger than ever, Jase Medical isn’t just selling products—it’s delivering empowerment. Don’t wait for the next disruption; visit Patriot.TV/meds today to build your personalized emergency plan and step into a more secure tomorrow. Your health, and your family’s, deserves nothing less.
