Chinese Economics Thread

G

gelgoog

Lieutenant General
Registered Member
Tam said:
To weaken the Yuan, you will have to print money, which increases domestic inflation, or you have to drop interest rates, which although might be stimulating the economy, comes badly at a time when China is trying to make the economy learn how to tighten its belt, consolidate and correct the excesses of its earlier boom years.
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Too low interest rates are pure cancer. You get zombie companies in your economy which get progressively less and less efficient.
Neither low nor high interest rates are a good thing.

China will have to print more Yuan to replace the trades it used to do in foreign currency with Russia. I think it would be also smart if they snapped up the exits Western companies will make in Russian businesses like in the energy sector. This would allow them to dump the dollars and euros they have for things with actual value. So they will lose less once the West defaults on its debt to China like they just did with Russia. For reference the US-China yearly trade deficit is about as large as the entire Russian Central Bank reserves they froze from Russia.
 
Bellum_Romanum

Bellum_Romanum

Brigadier
Registered Member
dfrtyhgj said:
That's only USD$300k, check
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top talent starts 700k+
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This comment shows you're not from or haven't been to the bay area. There's been a lot of articles written about these "high paid" engineers that have to literally live far off their workplace due to the insane cost of living around or close to their place of employment. The comparison isn't a straight apples to apples, and I think that is where you have made a strategic mistake in comparing salaries between two countries with very distinct advantages, and advantages. Top cities in China offers the most convenience when it comes to public transportation accessibility, lower cost of living, more value for one's money, and relative safety.
 
Coalescence

Coalescence

Senior Member
Registered Member
tonyget said:
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Miscellaneous News

Some aussies are openly calling for SI "regime change" already. I said let them try. China can than supply SI with weapons to defend themselves against those oppressive Aussie government. That way Morris regime would ran out of borrowed Chinese money and would lose face and therefore have to...
www.sinodefenceforum.com
But yes, this is good. It will only get worse for the dollar going forward because of the breakdown of trust after confiscating of Russian's assets and reserves. It broke the perception of US treasury and assets being a neutral risk-free asset.

This trend is also compounded by inflation in US and countries starting to use their reserves to buy and store commodities to prepare for the incoming shortages and tough times.
 
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