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China scales back dramatically on high speed rail projects
It is interesting that the Chinese railways are admitting they can’t make money on passenger service. That is something the US railroads found out 40-50 years ago. Amtrak hasn’t made a profit either after taking over the passenger trains.
Hmmm, the president likes the Chinese so much, why doesn’t he take a lesson here? You can’t spend what you don’t have!!
I think one or more of our debt payment checks bounced!
Oh please lets not go politics. Even a GOP candidate admitted you can’t grow an economy by cutting spending
The profitability of airlines is also marginal to none, take away the $16bn/y subsidy and see how profitable they are AND listen for the screaming about airline fares. One air line is now out of the Bos-Phil route, so the remaining one charges a $500 round trip. This is the future, so trains will become more economical, they are already without our airline subsidies. Listen to the whining about gas prices, has no one heard of supply and demand, does no one remember the $4 gas back before the ‘crash’? As the world economy begins to motor so will oil demand. The fact is that transportation is expensive, divine right to $2 gas is as dead as Charles I for his stand on the divine right of kings…
The Chinese Railway Construction Corporation (CRCC) is the 6th largest construction company in the world. Financed by Chinese government-owned banks, with a business model based on hauling commodities that are needed for Chinese manufacturing at home, they have built (and are building) new railroads across the globe to serve new mining projects. These roads make money. They are not “high speed”, and they do NOT haul passengers. But - like the British railways around the world in 1900 did for the British Empire - these roads tightly secure the regions where they are built for the new 21st Century Chinese Empire. This is modern railroad fact, not fiction.
The Chineses Government owns the railroad!
The Chinese Government owns the construction company!
The Chinese Government owns the banks!
From one pocket to the next to the next.
Paul