Contract to build power plant signed with Chinese company

Here is how this all works. 1.) The Chinese create billions of Yuan out of nothing and put this onto the balance sheet of a Chinese bank; 2.) This Chinese bank then uses this money to buy Euros from an EU bank. 3.) The EU bank has created Euros in exactly the same way as the Chinese created Yuan, they created them out of nothing. 4.) The Chinese then lend these Euros to Serbia on condition that this money is used to employ Chinese firms.

Instead of doing things this way, why didn’t Serbia do what the Chinese and EU do? Why don’t the Serbs create Dinars out of nothing and use them to pay Serbian workers to build power stations in Serbia? If they did this there would be no loan and no interest to pay, and thousands of unemployed Serbian workers would have jobs.

We should definitely accept more investments from People's Republic of China.....it is a raising power in forthcoming change in international relationships.

Why don’t the Serbs create Dinars out of nothing and use them to pay Serbian workers to build power stations in Serbia? If they did this there would be no loan and no interest to pay, and thousands of unemployed Serbian workers would have jobs.
(Michael Thomas, 21 November 2013 13:42)

I think the reason for not printing money out of thin air is the National Bank of Serbia which is assigned to issue Dinars is privately owned and abides by the articles of membership and association of BIS(money issued to the government must bear interest)whereas the National Bank of China is under public control and acts upon the instructions of the Chinese government(interest-free money).One has to bear in mind that interest charges are already build in the total cost of the construction and could be as high as 50% of the total cost.

This is a bad idea. By the time it is up and running, Serbia will be joining the EU, and they will want Serbia to shut down coal power plants for environmental reasons. Then what? upgrade it so it is cleaner at tax payer expense or shut it down completely. There are plenty of places Serbia can build Hydro electric plants, it should concentrate on this

Before the usual moronic comments that the Chinese will scr*w the Serbs and can't be trusted, a huge nuclear deal has been signed in the UK where French nuclear power company AREVA will build multiple NPP with money and backing from the Chinese.* How is it the mighty British are forced to take foreign money & expertise? Traditional incompetence of course (don't mention THORPE)! Unlike France that produces over 70% of its electricity by NPPs and has a long term energy plan, or any normal country.

BBC-

http://www.bbc.co.uk/news/business-24613550

This is a bad idea. By the time it is up and running, Serbia will be joining the EU, and they will want Serbia to shut down coal power plants for environmental reasons. Then what? upgrade it so it is cleaner at tax payer expense or shut it down completely. There are plenty of places Serbia can build Hydro electric plants, it should concentrate on this

Before the usual moronic comments that the Chinese will scr*w the Serbs and can't be trusted, a huge nuclear deal has been signed in the UK where French nuclear power company AREVA will build multiple NPP with money and backing from the Chinese.* How is it the mighty British are forced to take foreign money & expertise? Traditional incompetence of course (don't mention THORPE)! Unlike France that produces over 70% of its electricity by NPPs and has a long term energy plan, or any normal country.

BBC-

http://www.bbc.co.uk/news/business-24613550

Here is how this all works. 1.) The Chinese create billions of Yuan out of nothing and put this onto the balance sheet of a Chinese bank; 2.) This Chinese bank then uses this money to buy Euros from an EU bank. 3.) The EU bank has created Euros in exactly the same way as the Chinese created Yuan, they created them out of nothing. 4.) The Chinese then lend these Euros to Serbia on condition that this money is used to employ Chinese firms.

Instead of doing things this way, why didn’t Serbia do what the Chinese and EU do? Why don’t the Serbs create Dinars out of nothing and use them to pay Serbian workers to build power stations in Serbia? If they did this there would be no loan and no interest to pay, and thousands of unemployed Serbian workers would have jobs.

We should definitely accept more investments from People's Republic of China.....it is a raising power in forthcoming change in international relationships.

Why don’t the Serbs create Dinars out of nothing and use them to pay Serbian workers to build power stations in Serbia? If they did this there would be no loan and no interest to pay, and thousands of unemployed Serbian workers would have jobs.
(Michael Thomas, 21 November 2013 13:42)

I think the reason for not printing money out of thin air is the National Bank of Serbia which is assigned to issue Dinars is privately owned and abides by the articles of membership and association of BIS(money issued to the government must bear interest)whereas the National Bank of China is under public control and acts upon the instructions of the Chinese government(interest-free money).One has to bear in mind that interest charges are already build in the total cost of the construction and could be as high as 50% of the total cost.