Chinese Economics Thread

[emblem21]

Just another day of "China is collapsing" stories getting heavily upvoted by delusional Gordon Chang followers

Keep the lies coming I say, the more they focus on China and not themselves, the quicker they will collapse in chinas stead.

 

[Xizor]

I want whoever developer is responsible for the Fake Paris near Hangzhou to be bought to trial and severely punished (monetarily) for tainting Chinese cities. An eyesore. Slums of Philippines are better than that, subjectively.

 

[Jiang ZeminFanboy]

If inflation becomes a big problem then saving IS the worse thing to do. During inflation, a currency's buying power decreases over time which means your savings shrink. The average American who saved like 15-20% of their income to buy a house this year is further away from buying one than he was last year (in nominal terms) because house prices had also risen at a similar rate from a higher principal value.

Instead of saving, you should be spending money upfront on purchases of real assets now instead of saving up money for future use. In fact, you should consider taking on a mortgage or other long-term debts for expensive purchases too because debt is also priced in the depreciating currency which means that debt increasing becomes an asset while savings is a liability.

Such consumer behavior may make inflation worse for everyone else but safeguarding you and your loved one's economic well-being should always be your top priority. However, I don't think we've reached a point where people on this forum should be panicking just yet. Just make preparations gradually like buying durable goods and increasing portfolio exposure to commodities and other inflation hedges. As things get worse, you will be increasingly ready accordingly but you shouldn't "bet the farm" on something that may not happen or be as bad (though I'm an inflation hawk myself).

Ye take a mortgage and wait few months for 5% interest rate. That's a deal.

 

[siegecrossbow]

Lol, some shitty German consultancy tried to spread fake news about Evergrande defaulting, expectably enough it is top on Reddit's worldnews sub - https://www.reddit.com/r/worldnews/comments/qr42om . However, when you go through the link, you can see that the headline actually changed to "Evergrande averts default", lmao.

Why the hell would they be happy for Evergrande default/collapse of Chinese economy? Everything is connected nowadays. If an economic crisis hits the globe they'd be out of a job and can't afford the internet bills to surf reddit.

Ditto for Chinese who wants the U.S. economy to crash.

 

[Tyler]

I want whoever developer is responsible for the Fake Paris near Hangzhou to be bought to trial and severely punished (monetarily) for tainting Chinese cities. An eyesore. Slums of Philippines are better than that, subjectively.

Rather you should consider which level of government that approved such projects.

 

[Orthan]

By the skin of their teeth...

Caixin article mentioning that the chinese government may have to take action to prop up the economy.

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[NiuBiDaRen]

Caixin article mentioning that the chinese government may have to take action to prop up the economy.

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Right now the entire world is experiencing inflation and slow economic growth due to the breakdown in supply chains. Quite a rare sight. The only permanent fix to this is alleviation of COVID.

Inflation is only going to get worse in 2022. Probably gold is a good investment now as a counter to these trends. On a longer term basis I would advise investing in the components of lithium ion batteries such as lithium, sodium, copper and cobalt. Essentially commodities.

 

[siegecrossbow]

Caixin article mentioning that the chinese government may have to take action to prop up the economy.

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Obivously they are not gonna just let it explode on the spot, but I don’t think they’ll bail it out either.

 

[Maikeru]

This is my target audience heh

Not everyone here was born to upper class parents

And not everyone has an Audemars Piguet watch wink wink unlike @ansy1968 who has a whole stash of them

Could he not afford Patek Phillipe then?

 

[Xizor]

Caixin article mentioning that the chinese government may have to take action to prop up the economy.

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The reasons or factors that are pointed at

Covid Zero Strategy, Property jitters, Power shortages, Surging raw material prices.
Now, if one were following the events for the past two years, it'd be clear that Chinese government is responsible for all the above things. But they could've withheld from creating these conditions in the first place ( only that it'd take some adjusting and "kicking the can down the road"). Why did China create these conditions now ? - would be a good question to ask.

Covid Zero: Absolutely necessary. China is a Covid pandemic fight success, much to the chagrin of PRC's adversaries and critics. China keeps on adhering to this formula for the good of itself.

Property Jitters: China trying to avoid "Lehman crisis" or a serious burst. China chose 2021 as a good year to Tighten the screws and suffocate property moguls.

Power shortages: While australian ( and AUKUS, QUAD media) asserts that it is purely due to China banning Aussie coal and in turn scoring an own goal, other factors like Quota system that constricts Coal usage to meet its Green energy goals as well as the spike in industrial demand as the global economy tries to spring back from covid, are usually not highlighted.

Surging raw material prices: I don't know the details so i leave this.