Unless they’re looking to revert to an agrarian feudal economy, those 60 million are just useless mouths with feet, case eg India. In modern economics, you need your worker to be at least literate with basic numeracy or failing that, a capacity to work hard.
Chinese Economics Thread
- Thread starter Norfolk
- Start date
Don't know who this Godfree Roberts is, but he makes a great point
The article linked in the tweet
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Rumor has it that a lot of assembly line workers hired by Boeing are not proficient in the English language, let alone literate.
I mean, rumours goes that they apparently hire a lot of Latin American illegal immigrants (since cheap, at something like 7 dollars an hour).
So, yea, not surprising if their English proficiency isn't good.
Solution: make Spanish a coofficial language. No? Too hard?
The only official language the US will ever have is American.
Lol Hes a businessman. Can't blame him alone. Afterall a big company like that wasn't working in a vacuum but in a country with a government and a system . What was the Chinese government doing all this time Evergrande was over over expanding and over borrowing like no tomorrow? Don't blame the player blame the game. So the government has even more responsibility than anyone here. Afterall they are the government and the ones in charge for a reason. If they couldn't control those scam companies for so long as you put it then they are to blame.
Seriously, seems you want to make Evergrande the scapegoat for China's poor performances in football as well? Lol I don't think China has ever been good in football since the beginning of times, China perfroms better in other sports but football has never been part of that. So Evergrande is not to blame for that. Don't know why you think he's the one to blame for this lol
If all football teams were bad that would be the case but the women’s team is doing just fine so there is something specifically wrong with how the men’s team is being run, selected, trained, and supported.
I really like this guy's post. His main point is had China allowed yuan to free flow in the international market, the real nominal GDP has already surpassed USA. This is the first time I have ever seen someone break down the numbers.
"Do you know the Trade Surplus of China is $ 843 Billion a year
This means over the past 15 years, Chinas cumulative trade surplus is a whopping $ 8.28 Trillion
Yet their Foreign Reserves are around $ 3.32 Trillion
So where is the rest of the $ 5 Trillion
Let's take away $ 2.10 Trillion to pay off Chinas External Debts
That's still $ 3 Trillion of money that China has stashed away somewhere in some corner of the globe
It simply took this money into a CHINESE WALL so that tomorrow if it's official reserves are frozen, it still has nearly $ 3 Trillion worth reserves left
So now with such a trade imbalance between the Yuan and the Dollar
Why is the Yuan only at 7.07 to 1 USD?
That's because the Yuan is kept deliberately weak by China so that it's exports remain competitive
The real value of the Yuan is closer to 4.74 to 1 USD
By this number , the Nominal GDP of China rises to = 127.2 Trillion Yuan / 4.74 = $ 26.83 Trillion
So realistically the GDP of China in USD Terms must be $ 26.83 Trillion and should have already beaten the United States
So why doesn't China play this card and freely allow it's currency to peg at 4.74 to a Dollar?
Simple
That would make their exports expensive and suddenly the Export demand will be affected and China will begin to Stagnate and within five to seven years China may stop their GDP at $ 33–34 Trillion and stop there.
Instead if China keeps the Yuan weak, China can keep their exports high, manage to handle their huge production volumes and keep growing until maybe 2032–2033 and THEN RELEASE THE YUAN FOR A FREE CONVERTIBILITY
Maybe grow to $ 21 Trillion or so and then hit the peg at 5 to 1 USD and reach a Nominal GDP of $ 41 Trillion by 2050 which is the goal
So I strongly believe
"Do you know the Trade Surplus of China is $ 843 Billion a year
This means over the past 15 years, Chinas cumulative trade surplus is a whopping $ 8.28 Trillion
Yet their Foreign Reserves are around $ 3.32 Trillion
So where is the rest of the $ 5 Trillion
Let's take away $ 2.10 Trillion to pay off Chinas External Debts
That's still $ 3 Trillion of money that China has stashed away somewhere in some corner of the globe
It simply took this money into a CHINESE WALL so that tomorrow if it's official reserves are frozen, it still has nearly $ 3 Trillion worth reserves left
So now with such a trade imbalance between the Yuan and the Dollar
Why is the Yuan only at 7.07 to 1 USD?
That's because the Yuan is kept deliberately weak by China so that it's exports remain competitive
The real value of the Yuan is closer to 4.74 to 1 USD
By this number , the Nominal GDP of China rises to = 127.2 Trillion Yuan / 4.74 = $ 26.83 Trillion
So realistically the GDP of China in USD Terms must be $ 26.83 Trillion and should have already beaten the United States
So why doesn't China play this card and freely allow it's currency to peg at 4.74 to a Dollar?
Simple
That would make their exports expensive and suddenly the Export demand will be affected and China will begin to Stagnate and within five to seven years China may stop their GDP at $ 33–34 Trillion and stop there.
Instead if China keeps the Yuan weak, China can keep their exports high, manage to handle their huge production volumes and keep growing until maybe 2032–2033 and THEN RELEASE THE YUAN FOR A FREE CONVERTIBILITY
Maybe grow to $ 21 Trillion or so and then hit the peg at 5 to 1 USD and reach a Nominal GDP of $ 41 Trillion by 2050 which is the goal
So I strongly believe
- Chinas Economy has a nominal GDP closer to $ 25 Trillion than $ 18.50 Trillion
- Chinas Actual Net Reserves as closer to $ 4 Trillion than $ 1 Trillion"