Chinese Economics Thread

Bellum_Romanum

Brigadier
Registered Member
Really? Explain why it would be better for China to pretty much mirror the same loser policies that are plaguing all leading economies of western countries that includes South Korea, and Japan.

How do you tackle persistent issue of housing or lack thereof without essentially popping the housing bubble that keeps fueling the exponential rise in housing prices that have pushed so many regular citizens in China and all over the leading economies on the sideline.

If the answer here is to simply postpone the problem later on just to make the the appearance of economic slowdown in China acceptable to what some people in China wants or the west want that do not mean it's the right thing to do.
All property market related restrictive policies need to be abolished. so that this self-inflicted situation can be resolved.
 

henrik

Senior Member
Registered Member
Absolutely not, housing is for living not for investing. Better burst the housing bubble now. If not, you just create a bigger bubble down the road that could drag Chinese economy down to a big and prolong recession.
Absolute yes, the bubble has burst already. These stupid policies have been dragging down normal property transactions, thereby affecting the economy and people's livelihood. Just like zero-covid policies, the policies are outdated and are now hurting the people they wanted to help. All these stimulus are needless at this time, when the most effective remedy is to relax these useless restrictive policies.
 

Overbom

Brigadier
Registered Member
Absolute yes, the bubble has burst already. These stupid policies have been dragging down normal property transactions, thereby affecting the economy and people's livelihood. Just like zero-covid policies, the policies are outdated and are now hurting the people they wanted to help. All these stimulus are needless at this time, when the most effective remedy is to relax these useless restrictive policies.
Bubble is still alive and well. Property sales are down but as long as prices don't fall it doesn't matter.

Wake me up when prices plunge 20%
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China's home prices in 70 large and medium-sized cities displayed a generally stable trend in July, according to data released by the National Bureau of Statistics on Monday.
New home prices in four first-tier cities -- Beijing, Shanghai, Shenzhen and Guangzhou -- edged up 0.3 percent month-on-month in July, according to the data.
 

Bellum_Romanum

Brigadier
Registered Member
Ho
Absolute yes, the bubble has burst already. These stupid policies have been dragging down normal property transactions, thereby affecting the economy and people's livelihood. Just like zero-covid policies, the policies are outdated and are now hurting the people they wanted to help. All these stimulus are needless at this time, when the most effective remedy is to relax these useless restrictive policies.
How do you know it's useless? And what's your background or expertise on such matters for you to be this confident with your declarations?
 

Petrolicious88

Senior Member
Registered Member
I can tell you antidotally that Americans are by and large NOT satisified with their lives nor the direction their life and nation is headed...

Im in my mid 30s and recall a time in my youth when growing up when neighbors were actually nice to each other and random strangers on the street would smile and wave and people went of their way to help etc...

These days people keep to themselves, dont even look each other in the eyes, and everyone is walking around with a grudge and chip on their shoulders in that sort of "f*uck you, got mine" mentality....

Ive lived on my suburbian current street for past 17+ years next to a major Highschool in a large US city... the camaderie is gone, the spirit is broken, and people just dont really even know their neighbors anymore... there is next to zero interaction

Gone are the icecream trucks waxing poetic to lyrical music in the summer or kids selling lemonade in front of their homes with makeshift stands... gone are the neighboor get togethers or even so much as someone baking a cake and sharing with the nextdoors etc ... heck we recently had a cat go missing and one of our neighbors two houses down knew about it, found a dead cat fitting similiar description in her backyard, decided to call up her "friend" in Arlington Animal Services Erika Brooks and makeshift buried it in her own backyard without taking a photo or retrieving collar or performing a microchip scan and then after I found out about this she refuses to give any info and completely shuts down....

Heck to be honest the very last time I recall the neighboorhood or street even being together for anything was during summer of 2020 two years ago when to help boost spirits after the covid shutdowns they had F18 jets in close formation blue angels fly across the metroplex of dfw and one of the routes intersected our area and for a brief couple of seconds we all stood together on the street to see the low level jets pass by...

To say Americans are more satisified is a bold face lie, bolder than POTUS proclaiming of zero inflation and no recession...
For the most part, Americans are overworked overstressed (this is of course also true in Asia). The Golden Era of America was back in the 60s, 70s, where a single parent with one job can support his family, buy a house. Back then Asian engineers could easily get Green Cards through their companies, and if their wives want to come, green cards for them too. Those times are long gone.

Half of Americans are barely math literate. Many are overextended on their credit cards; living from pay check to pay check. That has been true for decades. Yet the economy grew bigger still.

———The true strength of the US economy has never been about the bottom 70%. The cream naturally rises to the top. The top 20-30% contributes more to the economy than the rest combined.

—— For example, Amazon is worth roughly $1 trillion, Bezos owns 16% of that. That means over the last 20 years, he and his team have created $840 billion of wealth for other people.

Create an environment that attracts talents from around the world. Cream will naturally rise to the top.
 

Biscuits

Colonel
Registered Member
I bought two rtx3090ti card and took on a credit card surplus of $3500

At this point they are basically bragging about the fact that they can get away with getting something for nothing....I would be bragging too if I never intended on paying my card balance again

What does China get in return? Its not like China needs any more BMW cars, or Gucci bags, or airbus planes... and the only thing China still currently needs they refuse to sell... and the Euro is basically already dead as a foregone conclusion with USD going to zero within one to two years....
It is beneficial for China because they can push the western currency further down the road by using it on third world nations (and third world equivalent western aligned breadbasket/mining states) in exchange for resource rights.

Having access to more resources = higher share of world market = more & better jobs at home, more power on the world stage.

There is a reason China could reach majority share and even dominance in pretty much every higher value industry. It doesn't have much to do with population. India, EU and Africa have similar or higher population. It is mainly due to China having inherited a strong industrial base from the cold war era and how the cold war generation managed to reapply themselves into the civilian sector, unlike most post soviet republics.

There is some degree of win win cooperation for both the west and China. The west gains the consumer goods needed to sustain life, China keeps its industrial prowess and deters conflict by centralizing goods flow, much like how US in theory deters conflict by centralising currency flow. The ones being shafted are the nations asked to hand over resources at low prices of fairly useless Western currency, who are too fearful of the west to say no.
 
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