Chinese Economics Thread

[Anlsvrthng]

In China there are more demands for new homes than any where else in the world. This shows that you know little about the housing demand.

There is more ABSOLUTE demand, but the RELATIVE demand drive the price and the market.

Example ( video game based, I hope that will fit everyone level : P )
Final Fantasy VII one of the highest sold game on PS1, with 11 million unit, and the price of it is 14-17 pounds, with high demand.
FIFA whatever sold as much as FFVII , but the price of it is down to 1-2 pounds range.

The Psychonauts sold 100000 , price in the FFVII range, the BMX XXX sold 100000 , price in the 4-5 pounds range.

The equation is simple : the supply vs demand setting the price and the ((price * price deviation from ideal due to regulation/transaction cost)* demand/supply ratio * absolute volume)= transaction volume.

It is possible to alter the market by restricting the supply, or by setting a price level.


Like you can target a low volume, low price game/DVD on the ebay, and with low cost you can make interesting experiments about the market.

Like starting to buy every game ,and selling them on a fixed price.

It will decrease the demand ( you will start to accumulate copies of that game) but the game price will start to increase.

Or all seller (if there is a few) can get the idea about the price of the good, and not willing to sell it for lower price, and collapse the demand of it.

Once I targeted the RE4 GC version for one week, bidding/buying every single copies with a target price , and it drive up the price quite nicely : P
Of course it was a zero or knife edge profit transaction, but ---- it was an experiment to see how the textbook works in reality.

THE MARKET SIZE DOESN'T MATTER that define the liquidity of the market, but with housing it has muffled effect, due to the location dependence of houses.

What happens in Chin is a restriction of price ,that causing the supply to accumulate in the system. OF course at same point the stock/money will run out, and then it will be visible who swim without pants : )

No demand demonstrated the need for new future housings. Again you kept proving to the world your lack of understanding.

Huh? So, if there is no demand for vacuum tubes then I have to make lot of them?

Yes but not in China. China is bigger and far more populated than your country. Therefore they have a greater need. Your desperation trying to prove that China is not as strong as some of you ignorant wish are showing.

Again, ABSOLUTE and RELATIVE.
Like humidity : )

The west spent centuries copying the Chinese inventions and still came out behind China today.

Example?

 

[Equation]

There is more ABSOLUTE demand, but the RELATIVE demand drive the price and the market.

Example ( video game based, I hope that will fit everyone level : P )
Final Fantasy VII one of the highest sold game on PS1, with 11 million unit, and the price of it is 14-17 pounds, with high demand.
FIFA whatever sold as much as FFVII , but the price of it is down to 1-2 pounds range.

The Psychonauts sold 100000 , price in the FFVII range, the BMX XXX sold 100000 , price in the 4-5 pounds range.

The equation is simple : the supply vs demand setting the price and the ((price * price deviation from ideal due to regulation/transaction cost)* demand/supply ratio * absolute volume)= transaction volume.

It is possible to alter the market by restricting the supply, or by setting a price level.


Like you can target a low volume, low price game/DVD on the ebay, and with low cost you can make interesting experiments about the market.

Like starting to buy every game ,and selling them on a fixed price.

It will decrease the demand ( you will start to accumulate copies of that game) but the game price will start to increase.

Or all seller (if there is a few) can get the idea about the price of the good, and not willing to sell it for lower price, and collapse the demand of it.

Once I targeted the RE4 GC version for one week, bidding/buying every single copies with a target price , and it drive up the price quite nicely : P
Of course it was a zero or knife edge profit transaction, but ---- it was an experiment to see how the textbook works in reality.

THE MARKET SIZE DOESN'T MATTER that define the liquidity of the market, but with housing it has muffled effect, due to the location dependence of houses.

What happens in Chin is a restriction of price ,that causing the supply to accumulate in the system. OF course at same point the stock/money will run out, and then it will be visible who swim without pants : )

YES the market size does matter. ONLY small countries such as yours can't seem to understand the way big markets like China works. You making up phony demands and definitions to suite your lame arguments.

Huh? So, if there is no demand for vacuum tubes then I have to make lot of them?

There's a continue demand for more made in China products.

Example?

Paper, book printing, printing blocks (all bases for modern day living), architecture, arts, medicine,etc.....

Still denying that China didn't invent the modern world and soon to be future world as well?

 

[Anlsvrthng]

Uh no, you are adding the wrong numbers together. Inflation means more money for same goods; GDP growth means more goods produced. There's no reason to add those numbers together and subtract from consumer spending; that's retarded people math. You know nothing about economics and since your opening statement made no sense, there's no need to evaluate the downstream effects.

And it's really cute how you tried to pull all the most favorable, untrue numbers for your equation only to have the whole equation make no sense anyway. 2.5% inflation? More like 2.2%. 6% GDP growth? 6.7% rounds to 6%, right? I mean, 0.7% is nothing; it's just the entire GDP growth rate of Japan in a good year LOL. 8.5% consumer spending growth? That's the lowest monthly; the highest was 10.1% and average was 9%.

+0.7% means the share of consumption decrease , not increase from GDP, so there is no rebalancing in the Chinese economy.

That makes the things worst....
The GDP growth number the economy performance expressed in yuan, and divided by the inflation .

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So, example 8% consumer spending and 6% GDP growth is not using the same calculation method, the later corrected with the GDP deflator, the first is nominal value.

 

[Anlsvrthng]

YES the market size does matter. ONLY small countries such as yours can't seem to understand the way big markets like China works. You making up phony demands and definitions to suite your lame arguments.

I am sorry, but I can not make simpler example.

Paper, book printing, printing blocks (all bases for modern day living), architecture, arts, medicine,etc.....

Still denying that China didn't invent the modern world and soon to be future world as well?

So, can you explain in what regards Europe lagging behind china in this areas?

The west spent centuries copying the Chinese inventions and still came out behind China today.

 

[Equation]

I am sorry, but I can not make simpler example.


So, can you explain in what regards Europe lagging behind china in this areas?

High speed rails, space, stealth fighters, AI, quantum technology, etc.

 

[broadsword]

There is more ABSOLUTE demand, but the RELATIVE demand drive the price and the market.

Example ( video game based, I hope that will fit everyone level : P )
Final Fantasy VII one of the highest sold game on PS1, with 11 million unit, and the price of it is 14-17 pounds, with high demand.
FIFA whatever sold as much as FFVII , but the price of it is down to 1-2 pounds range.

The Psychonauts sold 100000 , price in the FFVII range, the BMX XXX sold 100000 , price in the 4-5 pounds range.

The equation is simple : the supply vs demand setting the price and the ((price * price deviation from ideal due to regulation/transaction cost)* demand/supply ratio * absolute volume)= transaction volume.

It is possible to alter the market by restricting the supply, or by setting a price level.


Like you can target a low volume, low price game/DVD on the ebay, and with low cost you can make interesting experiments about the market.

Like starting to buy every game ,and selling them on a fixed price.

It will decrease the demand ( you will start to accumulate copies of that game) but the game price will start to increase.

Or all seller (if there is a few) can get the idea about the price of the good, and not willing to sell it for lower price, and collapse the demand of it.

Once I targeted the RE4 GC version for one week, bidding/buying every single copies with a target price , and it drive up the price quite nicely : P
Of course it was a zero or knife edge profit transaction, but ---- it was an experiment to see how the textbook works in reality.

THE MARKET SIZE DOESN'T MATTER that define the liquidity of the market, but with housing it has muffled effect, due to the location dependence of houses.

What happens in Chin is a restriction of price ,that causing the supply to accumulate in the system. OF course at same point the stock/money will run out, and then it will be visible who swim without pants : )


Huh? So, if there is no demand for vacuum tubes then I have to make lot of them?

Again, ABSOLUTE and RELATIVE.
Like humidity : )

Example?

China is still growing faster than Europe except Ireland. That's all that matters.

 

[Anlsvrthng]

China is still growing faster than Europe except Ireland. That's all that matters.

China hasn't reached the level when Argentina/ Chile / Brasil and so on hit the wall.

So at the moment it sounds like " he finished the high school well, so he will be as good in the university . : P

And at the moment China do the same mistakes that Argentina did....

 

[broadsword]

China hasn't reached the level when Argentina/ Chile / Brasil and so on hit the wall.

What do you mean hit the wall? It grew more than 6%.

So at the moment it sounds like " he finished the high school well, so he will be as good in the university . : P

Per aforementioned reply.

And at the moment China do the same mistakes that Argentina did....

Argentina growing at over 6%?

 

[Anlsvrthng]

Argentina growing at over 6%?

At the same stage of economics development where is China now yes....

 

[manqiangrexue]

At the same stage of economics development where is China now yes....

This is a graph of Argentina's growth from as far back as 1994.

Where the hell on this graph do you see a sustained growth period like what you see in China?

And this question is setting the bar really really low because there isn't an ounce of evidence to say that China and Argentina are similar and headed in the same direction even if they coincidentally display an artificial similarity in GDP growth for a short period of time (which they don't unless you count ridiculously short periods such as a year or 2).