Chinese Economics Thread
- Thread starter Norfolk
- Start date
Yeah but precisely the USA economy is pumped up because of rentseeking assets. If USA can't beat China even in rentseeking assets..........
Now the question is, does total wealth include art value?
According to the article, about 68% is real estate, the rest are infrastructure (does not exist in Murica), machinery, equipment, IP, patents, and other "intangibles".
How does the latest Biden infrastructure bill look? Is it just going to lobbyers' pockets?
It has a lot of “studies” for $70m, every senator has got his pet project accounted for, and of course it’s just been thrown together.
All news coming out of China regarding technology is not reported. Since China is making great strides in improving its technology, we will not hear about it in the mainstream media.
The economic news coming out of China that is being reported by the mainstream Western media, especially American media, it is all bad, and China is not doing well, or will not do well soon in the future.
This story that China is richer than America, and it is by quite a bit, that is too much to handle. They cannot handle the truth, so it will not be reported much in America.
There was another story the last couple of days on the Chinese economy where industrial output was up and consumer spending was up, that surprised people, but the real estate sector was down, due to the crackdown. All the Western reports say that the industrial output will surely weaken, and the Chinese consumer is not that strong.
What they do not realize, because the media probably are stupid or racist, is that with industrial output up, consumer spending up, and real estate down, this is like the Goldilocks scenario, where it is not too hot or not too cold, just right.
This is kind of important because the Chinese economy would be then growing in a stable manner. If something falters, the other sectors will pick up growth.
If the Goldilocks scenario existed in the American economy, like it did sometimes in the past, the American media would be like USA! USA! USA!
Now since China has higher and more stable growth, and if it falters, there are stimulus policies available to the Chinese authorities, we never hear anything about that in the Western mainstream media.
I think we got to pay attention of the news the next little while with regards to China and its economy. The reporting suggest the Western media is at a breaking point with their China reporting.
The media is to provide the news. But if the news is not what they want to hear, they can opt to not report it, but they report false news. What is the point of false news? No idea.
They seem to want to distort their reporting in order to distort reality. It is like they cannot handle that reality anymore.
The old school.
Land, labour, capital.
Since land is kind of like capital as it is an asset, now mostly this is just labour and capital.
Chairman Mao was great, but he had no capital. Comrade Deng did not have much either.
Then things changed, and the rest is history.
How to prevent the rent seeking, thereby extractive, tendencies of capital, that is hard to say.
They been thinking about that since Marx.
Seems to be, what to avoid is what the CCP is signalling. Avoid finanicialization of the economy.
The new regulations or crackdown for the past year, seems to be pointed at that.
It is what Deng said, cross the river by feeling for the rocks. We see what happens.
Hendrik_2000
Lieutenant General
Yup all those dragon slayer are wrong again excellent article by Tom Fowdy in Yichai
(Yicai Global) Nov. 15 -- Today China released a swathe of economic data for the October period, surpassing expectations by economists. Retail sales had grown by 4.9% year on year against an estimation of 3.5%, whilst Industrial Production increased by 3.5%, up 0.4% from the previous month and against a prediction of 3.1%. Finally, fixed asset investment grown by 6.1%, relatively consistent with the estimation of 6.2% but missing the forecast of 7.3%.
The data bucks a narrative pushed relentlessly by the western media that China’s economy is in a state of crisis or slowdown, aggravated by specific challenges such as energy, inflation and supply chain problems. Instead, it demonstrates the continued resilience of China to face respective challenges especially when it comes to manufacturing, exports and consumption as keystones of growth.
Throughout the month of October, much was made of a global commodity crisis which caused the price of coal to surge, leading to a ripple effect on China’s power supply and the cost shouldered down to factories, who require enormous amounts of energy to fulfil production. This problem translated into a number of hysterical and abjectly negative headlines from the mainstream western media who sought to depict it as bad for industry.
As a New York Times subheading read the crisis would: “damage its image as a reliable manufacturing base” and it was thereby assumed that China’s exports and manufacturing would suffer, hence for two months straight the PMI of manufacturing contracted slightly. However, what was soon overlooked was how fast China brought the commodity crisis under control. In the Middle of October, China’s Coal Futures in Dalian had peaked at CNY3,878 per ton. As of mid-November, the price is now around CNY2,300.
What happened? Through state intervention, China dramatically increased the supply and local capacity, punished rumour mongers who were artificially driving prices up for profits, whilst coordinating price controls. The result is that in the space of a month, state planners had brought the energy crisis under control and offset the damage to industry, allowing growth to recuperate which has also been buoyed by strong demand overseas. It marks yet another crisis whereby the western media made overtly negative predictions, and got it wrong. China has continued to be the most resilient and reliable supply chain, whereby alternative countries such as India and Vietnam have proved themselves unreliable.
(Yicai Global) Nov. 15 -- Today China released a swathe of economic data for the October period, surpassing expectations by economists. Retail sales had grown by 4.9% year on year against an estimation of 3.5%, whilst Industrial Production increased by 3.5%, up 0.4% from the previous month and against a prediction of 3.1%. Finally, fixed asset investment grown by 6.1%, relatively consistent with the estimation of 6.2% but missing the forecast of 7.3%.
The data bucks a narrative pushed relentlessly by the western media that China’s economy is in a state of crisis or slowdown, aggravated by specific challenges such as energy, inflation and supply chain problems. Instead, it demonstrates the continued resilience of China to face respective challenges especially when it comes to manufacturing, exports and consumption as keystones of growth.
Throughout the month of October, much was made of a global commodity crisis which caused the price of coal to surge, leading to a ripple effect on China’s power supply and the cost shouldered down to factories, who require enormous amounts of energy to fulfil production. This problem translated into a number of hysterical and abjectly negative headlines from the mainstream western media who sought to depict it as bad for industry.
As a New York Times subheading read the crisis would: “damage its image as a reliable manufacturing base” and it was thereby assumed that China’s exports and manufacturing would suffer, hence for two months straight the PMI of manufacturing contracted slightly. However, what was soon overlooked was how fast China brought the commodity crisis under control. In the Middle of October, China’s Coal Futures in Dalian had peaked at CNY3,878 per ton. As of mid-November, the price is now around CNY2,300.
What happened? Through state intervention, China dramatically increased the supply and local capacity, punished rumour mongers who were artificially driving prices up for profits, whilst coordinating price controls. The result is that in the space of a month, state planners had brought the energy crisis under control and offset the damage to industry, allowing growth to recuperate which has also been buoyed by strong demand overseas. It marks yet another crisis whereby the western media made overtly negative predictions, and got it wrong. China has continued to be the most resilient and reliable supply chain, whereby alternative countries such as India and Vietnam have proved themselves unreliable.
