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RE: Is China in trouble?

in #finance7 years ago (edited)

If everything was fine in China, then private sector Chinese would be reinvesting their money at home. When people are confident, they always reinvest in their home territory.

Instead there has been a tsunami of money trying to flee China before it collapses. It has gotten so bad that govts around the world have taken action to stop Chinese buyers from distorting local property markets. I did an article about it a few months ago: https://steemit.com/property/@candy49/the-world-starts-reacting-to-stop-the-tsunami-of-chinese-money-flooding-into-international-property

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Previous government policy was export based. It takes time for the market to adapt. Current planning is to encourage internal growth, and a happier and wealthier populace. If money was fleeing China there would be evidence in the exchange balance. Am I to understand that you believe than in the past 20 years money has been fleeing America. The huge foreign debt of the US by conventional economic theory is best dealt with by defaulting, or through an inflationary policy. An inflationary policy at the level of the 1970's is politically sustainable under the guise of bringing jobs home, and the creation of artificial barriers to trade, such as make the Mexicans pay for a wall, and similar arguments. The Trump administration's stated policy is to erect protectionist barriers. It would be foolish for any foreign government to hold US debt in the long term. It makes sense for the Chinese to buy foreign assets while the US dollar retains some relatively high exchange value.

Good evaluation. Wat d you think about the Americas by the way, anything that stands out to you , I think it would be difficult for the US to recover and repay their debts , but then again , people might find value as you've said. Can't figure that out I'm not much of a economist , mostly just watching the show.