Chinese Economics Thread

[bajingan]

Not exactly.

Iron ore only benefits that part of their economy in Australia, the mines there. Iron ore production Australia is the undisputed world leader, because they had China as their client.

Stuff like aluminum and copper, that comes from everyone else.

The rumour I read somewhere is that China was stockpiling these base metals. Due to the Trump restrictions on Huawei, which lead to Chinese firms stockpiling semiconductor chips, now it does seem that China is stockpiling base metals too, as I think I read last week that China stocks of copper were really high.

That is the fog of trade war.

One country, China, is trying to position itself on the battlefield to win. What the other countries are doing, that is hard to figure out.

Why did Australia go after China? So that instead of buying Australian coal, China can go buy American coal?

a question for you @horse, logically thinking rising iron ore prices also means rising price of cars, trucks, planes, ships and industrial machineries around the world right? Because all industrial countries get their iron mainly from the same place australia
So it means it will help raise inflation in america and much of the world thus dragging the world economy back

 

[kentchang]

Most people in western countries are atheist anyway ...... I'd bet much more religious Chinese (not necessarily Christian/Muslims) in China then in the USA or EU

Most Chinese in China are following Confucius/Tao or Buddhism ... these are religions too .. it depends on who you ask

Religion, by definition, must have a deity/super-natural being. If not, it is a Belief or Philosophy.

 

[horse]

a question for you @horse, logically thinking rising iron ore prices also means rising price of cars, trucks, planes, ships and industrial machineries around the world right? Because all industrial countries get their iron mainly from the same place australia
So it means it will help raise inflation in america and much of the world thus dragging the world economy back

If we run a lemonade stand, selling lemonade for 0.50 cents, but because the US Congress bought all the lemons because ran out of sour grapes, the price of lemons doubles and now we sell our lemonade for 0.75 cents.

That is straightforward. Any situation that is more complicated, then it is very hard say what exactly happens.

Suppose iron ore increases another 20%. Do not even know how much it has gone up. How much inflation would that produce? The steel company could have reduced cost via other methods.

That is what the news always say. When it comes to inflation, it is always about "inflationary pressure."

A rise in iron ore prices would be inflationary pressure. How much inflation would be the end result is unknown. A lot of other factors could come into play.

The other term to remember about inflation, is "expectation of inflation." There is inflation because people expect it and automatically raises prices. We are not there yet.

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As for American inflation impacting the world, assuming there is actually American inflation lasting for a couple of years, there probably will be no impact.

What should happen is the US Dollar depreciates against the Yen and Euro.

 

[bajingan]

If we run a lemonade stand, selling lemonade for 0.50 cents, but because the US Congress bought all the lemons because ran out of sour grapes, the price of lemons doubles and now we sell our lemonade for 0.75 cents.

That is straightforward. Any situation that is more complicated, then it is very hard say what exactly happens.

Suppose iron ore increases another 20%. Do not even know how much it has gone up. How much inflation would that produce? The steel company could have reduced cost via other methods.

That is what the news always say. When it comes to inflation, it is always about "inflationary pressure."

A rise in iron ore prices would be inflationary pressure. How much inflation would be the end result is unknown. A lot of other factors could come into play.

The other term to remember about inflation, is "expectation of inflation." There is inflation because people expect it and automatically raises prices. We are not there yet.

--------------------------------------------------------

As for American inflation impacting the world, assuming there is actually American inflation lasting for a couple of years, there probably will be no impact.

What should happen is the US Dollar depreciates against the Yen and Euro.

Thanks for your reply, your view is insightful as always
Here in australia, we can already feel the creeping inflation on the price of cars
For example this year toyota camry hybrid full spec version is $5700 more expensive than last year, with exactly the same engine, with only minor upgrade on the infotainment system that doesn't justify the whooping $5700 price hike lol

 

[horse]

Thanks for your reply, your view is insightful as always
Here in australia, we can already feel the creeping inflation on the price of cars
For example this year toyota camry hybrid full spec version is $5700 more expensive than last year, with exactly the same engine, with only minor upgrade on the infotainment system that doesn't justify the whooping $5700 price hike lol

Glad you like the answer, as I feel I really do not have specialized knowledge. All I did was live through the crap, and since I got a good memory, I remember, and I like talking about because that is the thing to do. To avoid to be bitten on the ass again, even though the first time jumped out of the way as soon as we knew something had clamped down on our ass. This time, if inflation happens, jump out of the way quicker, and do the oppression thing, instead of the victim thing. The butt should not hurt, possibly feel better.

1. There could be a lot of gouging going on. Read stories out of India of rather blatant gouging going on medical supplies. The pandemic disrupted production, hence there are shortages and prices go up with a big one time jump from the shortages.

2. After the shortages go away, will we have persistence price inflation in America? Inflation is constant, wage and price increases happen frequently, and constantly. Then the mentality of society changes. We have to re-evaluate in 6 months, a year, etc.

3. The price of cars has shot up in America from what I thought I read a couple of weeks ago. The reason is no production. Lack of new cars and everyone buys up the used cars too. The Japanese saw that, and thought, we raise prices too! It could have been as simple as that.

 

[Tyler]

Glad you like the answer, as I feel I really do not have specialized knowledge. All I did was live through the crap, and since I got a good memory, I remember, and I like talking about because that is the thing to do. To avoid to be bitten on the ass again, even though the first time jumped out of the way as soon as we knew something had clamped down on our ass. This time, if inflation happens, jump out of the way quicker, and do the oppression thing, instead of the victim thing. The butt should not hurt, possibly feel better.

1. There could be a lot of gouging going on. Read stories out of India of rather blatant gouging going on medical supplies. The pandemic disrupted production, hence there are shortages and prices go up with a big one time jump from the shortages.

2. After the shortages go away, will we have persistence price inflation in America? Inflation is constant, wage and price increases happen frequently, and constantly. Then the mentality of society changes. We have to re-evaluate in 6 months, a year, etc.

3. The price of cars has shot up in America from what I thought I read a couple of weeks ago. The reason is no production. Lack of new cars and everyone buys up the used cars too. The Japanese saw that, and thought, we raise prices too! It could have been as simple as that.

Now is the chance to export Chinese branded cars to the US market, when there is shortage of cars.

 

[voyager1]

Inflation is terrible for the common people

"Muh markets"
"Muh industrial"
"Muh the debt"

If you had saved some money then the state is stealing that money from you due to inflation

And lets not forget that wages wont keep up with the inflation because of our neoliberal corporates

So they first steal our saved money and then they steal again by "lowering" our wages (wage growth < inflation growth)

 

[Dolcevita]

Oh My. I hope China does not JACK UP the prices of all the products sold around the world.

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CHENNAI: Renault-Nissan has told a court it needs to continue production at its car plant to meet orders, rejecting claims from an employee union that Covid-19 safety protocols were being ignored at the factory.

 

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[KYli]

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