That last sentence is a banger.

Both of these are forms of fiscal repression, the Japanese one is simply more market-driven and therefore up-front in allocating losses directly to households on day one.

One quibble: “How many other emerging market nations fund infrastructure projects in foreign nations as a soft projection of power?” Is not, in my opinion, an accurate representation of the BRI.

It is yet another of the innumerable instances in which the Party has found it more palatable to lend abroad to facilitate foreign consumption of Chinese production than to engage in structural reforms that would disrupt employment… in this instance, of the construction materials and equipment sectors. Given the demand to tighten down on domestic credit growth in the housing and infrastructure sectors after Xi’s ascension, there was no other option but to shift that credit growth “off books” by offering credit abroad.

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This is true, a large part of the reason BRI exists is because of how it absorbs excess capacity at home.

Given the nature of some of the projects however, I would still suggest that it is also a way of projecting power - especially in development of deep water ports.

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