Chinese Economics Thread

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galvatron

Junior Member
Registered Member
AndrewS said:
When it happens, China just had to be amongst the first ones out of the dollar, in order to minimise the losses.

And I expect Japan will be amongst the last as they try to prop up the US, so they'll end up absorbing a lot of the losses.

But if you have to hold dollar assets, make sure it is in liquid assets like treasury bonds or some stocks. And if in illiquid assets, then things which derive their income from exports, so that a currency devaluation doesn't matter.

Watch the Big Short if you want to see what a Fire Sale looked like in the 2008 financial crash.
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Why would Japan try to defend the $US? They have a trillion $US debt, which is higher percentage of all their foreign reserves than what China has. They know they are more vulnerable than China.
 
A

AndrewS

Brigadier
Registered Member
galvatron said:
Why would Japan try to defend the $US? They have a trillion $US debt, which is higher percentage of all their foreign reserves than what China has. They know they are more vulnerable than China.
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Because Japan thinks its fate is with an economic and military alliance with the USA.

So when the US gets weaker, it becomes less capable or willing to provide a counterpoint to China.

But if China becomes 2x larger than the USA, it's very difficult to see the US still playing this role.
And in the long-run, China can aspire to be 3x or 4x larger than the USA, due to China's larger population.
 
plawolf

plawolf

Lieutenant General
Tam said:
WARNING!!! Full BS journalism in effect here.

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Because you are insecure about the Hong Kong National Security Law, firm decides to shut down operations to Hong Kong, shut down operations in Japan and move to Shanghai??
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Of course, it has nothing to do with US revoking the special status of HK, thereby nullifying the justification for companies to pay massively inflated rents and wages; but everything to do with Chinese ‘oppression’, which is why they are moving to Shanghai, where Beijing has no jurisdiction. Oh wait...

This is why the west is falling apart. It’s like their cultural revolution, where the only thing that matters is ideological purity and being wrong all the time is no hinderance to success so long as you praise freedom/democracy and denounce China.
 
M

machupicu

Junior Member
Registered Member
AndrewS said:
Because Japan thinks its fate is with an economic and military alliance with the USA.

So when the US gets weaker, it becomes less capable or willing to provide a counterpoint to China.

But if China becomes 2x larger than the USA, it's very difficult to see the US still playing this role.
And in the long-run, China can aspire to be 3x or 4x larger than the USA, due to China's larger population.
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U.S. imports jump in August, especially from China


Total U.S. imports have risen in August after 10 straight months of declines, data from S&P Global shows, with U.S. imports by sea growing by 7% year over year in the first 15 days of the month.

Details: Imports from China surged 14.3% higher year over year in the first half of August after increasing by 4.3% in July, per Panjiva, the supply chain research unit of S&P Global Market Intelligence. Exports from the EU rose by 7.5% after falling 13.9% in July. Growth was not universal with shipments from Asia, excluding China, down by 4.6% due to a continued decline in imports from Japan.
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G

galvatron

Junior Member
Registered Member
plawolf said:
Looks like Beijing really want 4 more years of Trump, which makes sense. The amount of damage Trump has done in his last 4 years to American long term interests and power have been ‘enormously massive, the greatest in history’, as he would put it.
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DT is not good for Huawei.
 
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