Urban Renewal, Red Ponzi Style: PBOC Prints $500 Billion To Replace Shanty-Towns

Shanty-town redevelopment is important as this is a key part of domestic demand which is directly controlled by the government….. The PBOC prints money, lends it to the China Development Bank, the world’s biggest policy bank, via the Pledged Supplementary Lending Facility, which then lends to local government financing vehicles in mostly small cities. Local governments aim to repay the loans via revenue from land sales or redevelopment.