He just finished his lunch in India and he's ready to have some fun!
Chinese Economics Thread
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What an asinine comparison. Primary products and manufactured goods are things that can be produced. Allowing prices to vary makes sense because it allows for the economic system to accommodate the inherently variability of their supply. You cannot produce more space-time. It's already there; that's it. These two things are not comparable on even the most basic material level, let alone economically or politically.
Deng's price reforms worked, if you remember, by setting a quota of a given good that was to be sold to the state at fixed prices, and allowing everything exceeding that to be sold at a market-determined price. In other words, there were two prices for most goods, one set by the state and the other by market actors. You cannot have strict hukou restrictions and liberalized residency requirements apply to the same city at the same time. Again, not comparable, so trying to argue that hukou reform will end just like price reform solely on the basis that both are elements of the Mao-era planning system is ridiculous.
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@BrokeGambler, @chgough34 OK, you two told US where the US 'sheeple' invest in? In the intangible stock market Ponzi scheme casino that makes the rich even richer and doesn't create any real value for the society (10% own 92%). But, where do people in Chinese people invest in? In bank savings that eventually get them built stuff like this below (world-leading housing, infrastructure, high tech factories). Maximum efficiency!
That gets them near full home ownership (the biggest/fastest urbanization in human history), but now financing high-tech sectors more and more which will make it the fastest transformation of the economy in history on a massive scale and more high-paying jobs thanks to higher value added. Nevertheless, in both instances, real-life assets were financed, to improve ordinary people's lives, so, they end with better "returns".
That gets them near full home ownership (the biggest/fastest urbanization in human history), but now financing high-tech sectors more and more which will make it the fastest transformation of the economy in history on a massive scale and more high-paying jobs thanks to higher value added. Nevertheless, in both instances, real-life assets were financed, to improve ordinary people's lives, so, they end with better "returns".
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And what are banks doing with their saving accounts? They have two options - investing in the same intangible stock market or make shadow lending to CCP related oligarchs
Thought so, but it's getting boring, all the same mantra here about the growing economy as the world is laughing at China as company valuations are making lower extremes 4th year in a row and Chinese entrepreneurs are begging USA to spare them from blacklisting. It's a sad story for China because if you are weak and clueless your enemy feels it and becomes bolder.
If all these cities are so prosperous why are so many Chinese trying to settle in EU and USA? It's because they will have higher standard of living there. I personally have Chinese friends who tell me how many people compete for a place in China, how difficult it is, low food and air quality, etc. This might change but it depends on the direction in which China is steered and recently it's towards isolation .. which reminds me of North Korea - during the 1950/1960 was doing better than South Korea but everyone can see what happened next with one man deciding everything policy.
All it matters is the PPP. The gap between US and China is growing far apart. China's PPP by 2030 is forecasted to be 50-60% higher than US. Alot of data and word of mouth are just noise. In a few decade, don't be surprised that China's economy is 3x larger than US by PPP measurement. This is according to Elon Musk (he predicted China economy to be 3x larger than USA).
U.S has the most homeless and tent cities in the world. It has a huge migrant population that they need to house and feed. If the U.S is the richest, where did all the money go? It is only benefiting the top guys.
U.S has the most homeless and tent cities in the world. It has a huge migrant population that they need to house and feed. If the U.S is the richest, where did all the money go? It is only benefiting the top guys.
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Before this transfer to financing emerging industries like now, helping them conquer the world, they assisted with the largest and fastest urbanization in the human history of the Chinese people by helping build housing at the scale like this:
Thanks to subsidies, now 90% of China owns their homes! Of course, infrastructure will always remain a top priority. They plan to go from 45.000km (2/3 of the entire world!) HSR is now 70.000 km! America = 0 km!
Boosting labor mobility, economic activity, and commercial activity around the key train stations and hubs, reducing emissions, reducing time, increasing productivity, and overall improving the quality of living and satisfaction of their people by improving transportation quality.
China not only has the largest HSR network but also the most cost-effective too (there goes your theory about shadow banking and 'oligarchs'), and is currently profitable.
And HSR is not the only railway class they invest in. And railways are not the only infrastructure they are dominating the world in!
They also have world-leading universities, government research institutions, smart ports, sci-tech zones, industrial special economic zones, etc. They are built in part through state banks financing it on various local levels.
1) These rankings of Universities are useless as they are based on published papers with dubious quality (and China excels at quantity)
2) 90% own their home, and I'm sure many own for speculation 2 or 3 homes which is one of China problems right now. And not saving accounts but investment in ghost cities has been the primary saving technique and a tool to urbanize China and deal with unemployment. This over-invesment in properties actually saved the world economy during the 2008 crisis generating artificial demand for commodities and let's see how China will deal with it . So far writing off debt, evergrande, etc
btw just checked for EU, it's not a perfect correlation but basically the poorer the country, the higher the property owning
2) 90% own their home, and I'm sure many own for speculation 2 or 3 homes which is one of China problems right now. And not saving accounts but investment in ghost cities has been the primary saving technique and a tool to urbanize China and deal with unemployment. This over-invesment in properties actually saved the world economy during the 2008 crisis generating artificial demand for commodities and let's see how China will deal with it . So far writing off debt, evergrande, etc
btw just checked for EU, it's not a perfect correlation but basically the poorer the country, the higher the property owning