Chinese Economics Thread

[SanWenYu]

he who controls the printer, controls the universe

Forget about Italy, the Economist magzine should use your photo for their cover page for year 2021.

 

[Bellum_Romanum]

Bloomberg article about a rumour of a detained senior official having forged 314 billion USD worth of banknotes. Its behind a paywall, so i can only see the intro.

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Man. If true, this is a serious blow to the credibility of the chinese institutions. How could they let this reach these proportions? what do you think of this?

Lol you're oh so darn predictable. Get a new hobby bro.

 

[zgx09t]

what do you think of this?

You don't a brain of your own to think, do you, Josip?

 

[SanWenYu]

If true

No comment on speculation. Come back when you can prove that it is true.

 

[Tyler]

Don't have to hide behind a profile Orthan. Be proud of your real name, Gordon Chang.

Well done, you have exposed the big detractor here.

 

[nixdorf]

The Chinese government owns the banking sector. This means they have tools at their disposal other nations would only dream of.
If they wanted to they could just cut the debts, print like mad, or whatever. They can control the capital flow in the market to cut down inflation.

I am more concerned about what will be the next sources for growth after infrastructure in China like the high speed rail and metro systems are mostly finished in less than a decade's time. We already see signs of investment into the electric car industry. There were also attempts in the civilian aircraft industry but those have been much less successful.

Comparing Japan with China is nonsensical because both countries are worlds apart be it in population, land resources, or state configuration. Even if the average Chinese citizen only had half the wealth of the average US citizen China would still have an economy many times larger than the US.

I think the US GDP figures are inflated by things like their medical and education sectors, which are wildly inflated to a degree nowhere else in the world. They aren't worth that amount of capital. One only needs to travel to the US and look at their main cities to see how degraded everything is compared to "poor" little Japan for example. There is trash everywhere and people openly defecate on the street in some places. The supposed wealth of the US is, I think, a mirage which exists on paper and computer ledgers.

The US has a highly developed economy based on services. Medical and education is a significant part of it, but you don't have to be in the US for long to appreciate how diverse the economy really is. There are a million ways to spend money in America and that's all counted in GDP. China for political reasons is unlikely to ever have an economy as diverse as the American economy. Even politics itself in America is a large chunk of GDP when you think of all the spending at local, state and national levels for political campaigning, advertising and lobbying. Think of the sports sector which is practically nonexistent in China compared to the US, where there's everything under the sun and a new sport is created every year. Think about things that are outright illegal in China like pornography and marijuana or crytomining. All of these things go into the GDP number.

China is also culturally not nearly as much oriented towards consumption as the United States. But consumption is what GDP measures. "Dual Circulation" shows that they know they have to boost consumption but it won't be easy. They have to get people to take up hobbies, watch sports, join a gym, go clubbing and all of these other millions of things that people do and spend money on in the West.

 

[zgx09t]

But consumption is what GDP measures.

Hmm .. is that the new method you just pulled out of your behind?

 

[tygyg1111]

The US has a highly developed economy based on services. Medical and education is a significant part of it, but you don't have to be in the US for long to appreciate how diverse the economy really is. There are a million ways to spend money in America and that's all counted in GDP. China for political reasons is unlikely to ever have an economy as diverse as the American economy. Even politics itself in America is a large chunk of GDP when you think of all the spending at local, state and national levels for political campaigning, advertising and lobbying. Think of the sports sector which is practically nonexistent in China compared to the US, where there's everything under the sun and a new sport is created every year. Think about things that are outright illegal in China like pornography and marijuana or crytomining. All of these things go into the GDP number.

China is also culturally not nearly as much oriented towards consumption as the United States. But consumption is what GDP measures. "Dual Circulation" shows that they know they have to boost consumption but it won't be easy. They have to get people to take up hobbies, watch sports, join a gym, go clubbing and all of these other millions of things that people do and spend money on in the West.

Don't forget proceeds of crime are also considered GDP in the US

 

[escobar]

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[nixdorf]

Hmm .. is that the new method you just pulled out of your behind?

Of course GDP includes consumption. The value of all goods and services bought and sold in an economy.