Chinese Economics Thread

[emblem21]

Also keep in mind that the state-owned Indian telecom company is running out of cash so they might be just covering up their weakness.

Hahaha, India is going to go bankrupt soon because of there inability to handle the virus as well as the fact that 100+ million are unemployed right now. No one is going to invest in India and more importantly, none of there neighbors even give a damn about India given there treatment of Muslims in there own country

 

[galvatron]

Hahaha, India is going to go bankrupt soon because of there inability to handle the virus as well as the fact that 100+ million are unemployed right now. No one is going to invest in India and more importantly, none of there neighbors even give a damn about India given there treatment of Muslims in there own country

But for some reasons these Indians have this "feeling good" mentality about themselves.

 

[emblem21]

But for some reasons these Indians have this "feeling good" mentality about themselves.

Yeah, there Wion channel gives me the impression that China is in deep trouble but when you take a look at the numbers in regards to the infection and unemployment and the locust problems screwing with there harvest, it seems that India is desperately trying to ignore the reality that there method of leadership (worlds largest democracy) isn't really suited to a crisis and hence they have join the ranks of the nations that should really worry about themselves instead of China since China at this point in time doesn't have an reason to deal with India and the USA when there problems will be what crumples both nations without a single missile being shot

 

[Gatekeeper]

Could we have a dedicated Huawei thread where news about it is posted? The word "Huawei" has become synonymous with China and it's getting ridiculous.

There was, but got locked by Mods.

 

[FangYuan]

Yeah, there Wion channel gives me the impression that China is in deep trouble but when you take a look at the numbers in regards to the infection and unemployment and the locust problems screwing with there harvest, it seems that India is desperately trying to ignore the reality that there method of leadership (worlds largest democracy) isn't really suited to a crisis and hence they have join the ranks of the nations that should really worry about themselves instead of China since China at this point in time doesn't have an reason to deal with India and the USA when there problems will be what crumples both nations without a single missile being shot

"American style democracy does not suit China. It's like a square peg in a round hole. Look at India, the world's biggest democracy, nearly 60% of its population defecates in the open. Its infrastructure is decades behind China. Women are not safe from Indian men. China does not want to be like India & adopt Western-style democracy"

[Good Life]​

 

[emblem21]

"American style democracy does not suit China. It's like a square peg in a round hole. Look at India, the world's biggest democracy, nearly 60% of its population defecates in the open. Its infrastructure is decades behind China. Women are not safe from Indian men. China does not want to be like India & adopt Western-style democracy"

[Good Life]​

Bloody hell, and somehow they consider themselves ready to be a super power. They can't even get basic hygiene properly addressed let alone respecting women in general.

 

[Tam]

Fiat money only works when there are CONFIDENCE in the economy! So it is basically a CON trick!

The gold standard works fine, but not fine enough for Nixon. There are plenty of books on why Nixon abandon the gold standards. The reasons are many, but the main one is the gold standard restrict money supply and growth. Nixon wanted to increase growth rate.

For well over a century, the US grew to a superpower using the gold standard. Being on the gold standard allowed for more correctional mechanisms, perhaps at the sacrifice for the speed of growth, and under the gold standard, the US is able to rise from the Great Depression, win World War 2 and outproduce its opponents, and had the greatest economic expansion in its history in the 40s, 50's and 60's.

But under the petrodollar, the US began its slow gradual road of eroding its manufacturing power, began greater income inequality, began to develop trade deficits. The US dollar cannot adjust to trade deficits because of perpetual strong US dollar propped by oil, where under circumstances where you import too much and export too little, your currency is supposed to depreciate to make your exports more price competitive which boosts local manufacturing. Instead, it becomes cheaper and more profitable to continue to import stuff for profit rather than manufacturing those items. Thus your 'free market' isn't free economics at all, and has been broken for decades because the US dollar cannot revaluate based on trade deficits and surplus. Without local manufacturing, US middle class begins to erode as incomes become stagnant taking on 'service jobs' which are like Mcdonald fast food jobs, Amazon warehouse jobs and Uber driver jobs, while inflation on other things, such as cars, rent, homes, and college education, began to rise while middle class income fail to keep up with this. This forces the middle class into debt and more debt to pay for these items.

 

[AssassinsMace]

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What happened to India making iPhones?

 

[Gatekeeper]

Yes, I understand that completely. I'm saying that when you look at the constituent parts of the inflation weighting, you end up with the conclusion that there will be an overall deflationary effect because the medium-term demand collapse is more than the supply shock.

Have a look at the weighting for the UK for example, which should be representative of the developed world.

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In a situation where there is a pandemic and an economic depression, lots of spending becomes a luxury instead of a necessity.

Things that come to mind include restaurants, cafes, bars, weekend breaks, new cars, house purchases, new clothing, leisure spending, services like dog walking etc etc

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But of course, there is China where the Coronavirus has been completely eliminated and life is back to normal now.
Yes, there are a few occasional outbreaks, but they don't affect many people as they are contained locally.
That breeds confidence in the economy.

Ok. I understand where you're going with this. And I sort of agree, but. I wouldn't think it's as serious in Europe as to cause a 1920s style depression. In the US, who knows? Trump is one loose canon, and it is probably the last person you want to command a bad situation.

So this could be China's Chernobyl moment, and achieved the 'great leap forward' they had eluded Mao. Don't get me wrong, I'm not looking to see that el passo moment because I want the west to suffer, etc. I want to see that moment in the hope that they realised it's pointless to confront China, and move forward with peaceful co-existence.

So in the words of our senior members here, 'Time will tell!

 

[Gatekeeper]

International currency backed by few big currency (i.e USD, Euro, RMB, Yen, GBP), so no single country could decide on its own

It is known as 'basket of currencies'. A proposal that was similar to China's proposal to the world bank and IMF.

Remember when in the great recession of 2008, all kinds of promised was offered to China for China to bail them out. The only thing China got was a slight increase in their voting rights in line with their economic size.

Well China not have quadruple their size since, but still have the same voting rights as 2008. Now I know how the native Americans feel! Lol