Gotta understand prime rate =/= central bank rate. Like the web article says: "The China Loan Prime Rate (LPR) is the lending rate provided by commercial banks to their highest quality customers".
Interest rates to government entities in the form of bonds are always lower than the prime rates for business and individuals. Plus, you can't compare base yields between China and the US directly like that, China has been notorious for loose monetary policy to purposely undermine the US for decades now, not just with the recent moves to BRICS.
Thank you for this rabbit hole. I follow silver and i didn't realize the impact of gold backed bonds in china. Many thanks
Aye no problem! It’s gonna be yuge
Gotta understand prime rate =/= central bank rate. Like the web article says: "The China Loan Prime Rate (LPR) is the lending rate provided by commercial banks to their highest quality customers".
Interest rates to government entities in the form of bonds are always lower than the prime rates for business and individuals. Plus, you can't compare base yields between China and the US directly like that, China has been notorious for loose monetary policy to purposely undermine the US for decades now, not just with the recent moves to BRICS.
Disagree. Historically money flows to the best and safest returns.
Bonds have value outside of the interest rate
If you want to argue historicality China is going to blow up under the weight of it's debt, and then fracture into a bunch of warlord states again.
LOL right right.