The Chinese Ministry of Finance recently announced its plan to issue a super long-term “special national debt” totaling 1 trillion yuan this year, with the longest term being 50 years. Public opinion believes that the Chinese Communist Party (CCP) is desperately trying to scrape together resources in the present, overspending and hollowing out the future.
The Ministry of Finance of the CCP announced earlier in May that it plans to issue super long-term special national debt for several years starting from this year, with an initial issuance of 1 trillion yuan (approximately 138.5 billion US dollars). The super long-term special national debt will have terms of 20 years, 30 years, and 50 years. Official media reports state that besides specific purposes, the funds will also be used to solve the financial difficulties of local governments.
The issuance of a 50-year super long-term national debt by the CCP, for the first time since its founding, has prompted many netizens to complain that it would take grandchildren to collect a 50-year debt.
An article titled “Strong Signs of the Collapse of a Dynasty” was recently published on the overseas X platform, analyzing that the political significance of this super long-term debt outweighs its economic significance. Super long-term debt essentially pre-collects future tax revenue, quantifies future gains into debt, borrowing money from the future without regard to future returns.
The article points out, “Once this door is opened, there could be 80-year or even 100-year national debt issued. Using means of overspending the future to make up for the current financial deficit is the essence of super long-term national debt.”
The author believes that the introduction of super long-term debt will inevitably lead to a complete breakdown of the rigid constraints of fiscal policy on economic activities, with governments at all levels rampantly borrowing for projects and becoming even more corrupt in these projects.
“The purpose of the CCP’s issuance of super long-term debt is to attempt to keep rolling the fiscal deficit along the conveyor belt of super long-term debt, hoping that the debt chain can continually extend sustainably into the future. This way, the debt market will never explode. It’s simply a wild idea!”
The author gives an example: in 1949, when the Nationalist Party retreated to Taiwan, some places on the mainland had already collected taxes up until 1999, which was also 50 years. Therefore, “the CCP’s issuance of super long-term national debt is one of the strongest signs of the decline of a dynasty.”
The article analyzes, “Economically speaking, the collapse of a dynasty goes through three stages: first is depleting past accumulations, then aggressively scraping together in the present, and finally overspending and hollowing out the future. When it reaches this final step, the downfall of the dynasty is irreversible. This is true for the Nationalist Party and all past dynasties in history!”
The article also states, “The 50-year super long-term national debt is a ‘tax on intelligence’ imposed by the CCP on the people. A few days ago, another type of super long-term debt (30-year term) was traded on the market, reaching a high of 127 yuan, but by the end of the day, the price was knocked back down to the original 100 yuan, the market only held for one day. Those who bought at the high of 127 yuan faced losses of up to 27% in just one day. This ‘tax on intelligence’ itself is a machine for harvesting suckers. If you believe in its future, you buy; if you don’t believe it has a future, you don’t buy. The CCP hopes that every individual becomes a taxpayer for this ‘tax on intelligence’.”
The author asserts, “Once the whole society recognizes the true nature of the CCP’s super long-term debt, it will collapse like the ‘gold yuan’ issued by the Nationalist Party in Shanghai back then, collapsing in a spectacular manner and ending up as worthless paper!”
Regarding the CCP’s issuance of super long-term debt with a maximum repayment period of 50 years, American economist Huang Dahua stated earlier this month to Epoch Times that the CCP’s local government debt is massive, the finances facing an unprecedented crisis, and the CCP government is attempting to use super long-term debt as a means to let the common people foot the bill, exchanging time for space, to resolve the astronomical debts of local governments.
Chinese-American economist Li Hengqing expressed to Epoch Times that the purpose of the CCP’s issuance of super long-term national debt is for ordinary citizens to purchase bonds with savings not used for consumption, aligning with the government’s intentions for investment or resolving the government’s debt. “However, in the current political and economic chaos, issuing 20, 30, or even 50-year super long-term national debt, in reality, the CCP has no intention of repayment, and furthermore, who can guarantee that the CCP regime will not collapse during this period?”
Overseas netizens have expressed skepticism about the CCP’s issuance of a 50-year super long-term special national debt:
Bbq: “This is hilarious, 50-year Chinese national debt. After 50 years, the abyss might have turned into a wasteland. Only fools would lend money to the Chinese (CCP) government.”
9.o: “It’s falling apart in five years, and they’re issuing new national debt.”
IsolationFenceEffectPipe: “It seems like this kind of national debt is printed with no intention of repayment.”
Elin|FungIPle: “By the time the officials change, they’ll probably just say, ‘Historical documents have no legal effect,’ and the new leaders won’t have to repay the money, truly profiting.”
TanKeren: “This joke has gone too far, will there even be a strong country after 50 years?”
fishjump: “50 years? The Soviet Union only lasted over 70 years, the risk is too great, besides civil servants and banks, who else would buy it?”
nobody: “Whoever buys will be unlucky, but I won’t buy.”
chunze0616: “If it collapses in 20 years, who will take the blame?”
Chai: “Are they still holding onto the receipts for the money they borrowed in the past?”
Ding Xiaoming: “Nowadays, the world is all about eating one’s future profits. Not only countries but many big companies too, and even ordinary people are fond of this. The CCP’s economy has always been a hollow shell, robbing Peter to pay Paul. Poor heroes come to power, full of grandeur, but with a few ups and downs, they clean out what semblance of wealth they have. Without anything to put on a show, creditors panic, borrowing becomes more difficult. It’s always adding but not subtracting. So, Wang Xia’ers are getting more anxious by the day. Originally just a paper tiger, the CCP’s economy is on the brink.”
agostic: “Party dies in five years, turmoil in ten.”
HengshanOldDao: “Just like the Xiong’an New Area, it’s touted as a millennium project, should issue a thousand-year national debt.”
These comments reflect the concerns and doubts of many individuals regarding the CCP’s decision to issue a 50-year super long-term national debt, highlighting uncertainties about its sustainability and the potential risks involved.