Gray can't be handled well, expressed as local debt.
One of the financial phenomena of executive power is the sharp rise in institutional costs. Institutional costsThis is a new concept, that is, when a state manages all the administrative costs. In fact, the cost of China's system has become intolerably high, and it certainly includes three layers.
The first layer is in charge of it, and I call it white finance, which is the part of financial expenditure that is supported by the state financial expenditure.
The second part is gray, which is their legal and unreasonable part, such as the part of income, revenue and expenditure that revolves around land finance, and even includes the financing platform of local **, which constitutes a serious social operating cost, but it is not necessarily all illegal. Gray part, but it is not included in the budget, that is, extra-budgetary, extra-legal, extra-budgetary. I call it white if it's on a budget, and gray if it's legal outside of a budget.
And then there's the black ** corruption.
These three costs, I used to give a definition, are when gray exceeds white, this social distortion;When black surpasses white, the society can no longer survive and will rebel. After the anti-corruption, the black is compressed, but the gray has no way to deal with it, it is expressed as local debt, expressed as the leverage of institutions.
There is no good workaround right now, we'll talk about that later. The costs of the whole system continue to climb to a certain extent, and the benefits and dividends of state capitalism are eaten up, and all we will soon face is a problem.