Update: 2014-04-07: Eliminated links to Bing dictionary, replaced with links to other dictionaries & encyclopedias.
I just did a class on personal finance and my students in China mentioned the low interest rates they receive on their savings.
Well, an article from the Wall Street Journal (the most important financial newspaper in the US) has looked into this and come to this conclusion: people in China who save money are really losing money. Because the percentage of interest they receive is lower than the percentage increase in the cost of living, Chinese savers *lose* an estimated 190 billion yuan a year.
But if savers are losing that money, then who is gaining it? The government, the banks and the companies banks lend to. Ordinary Chinese savers are paying a hidden tax to the government and a hidden subsidy to the banks and their corporate borrowers.
Read more here:China Realtime Report, The Wall Street Journal.
G.A.L.E.S.L. / joe3
Some tips and links on learning English.