Part 3/14:
This level of deficit mirrors wartime levels seen during China's civil war era when the government needed to fund military campaigns. However, the current deficit is driven not by war but by CCP's mismanagement and a bloated, inefficient government apparatus, including 80 million public sector employees. A 50% deficit ratio implies that revenues are only capable of covering two-thirds of government expenses, forcing Beijing to resort to tax hikes and monetary expansion simultaneously.