Chinese Economics Thread

[Kaeshmiri]

Maybe It's a bit early to say that.

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1. The purpose of this Article is to tell other nations that there's nothing to fear from China and that Chinese economic threats are hollow.

2. One also has to accept that Australia will continue to have an upper hand in trade as long as they remain the major player in Iron Ore. They purposely inflated its price last few months to make up for the lost revenue in Coal, Barley, Wine etc.

3. The only way such nations can be punished is through financial sanctions. That can only happen when Yuan becomes a global currency.

4. Australia should also be taught power the hard way. Anglos love to exercise their "freedom of navigation", PLAN should also exercise this freedom around Australian waters.

 

[bajingan]

1. The purpose of this Article is to tell other nations that there's nothing to fear from China and that Chinese economic threats are hollow.

2. One also has to accept that Australia will continue to have an upper hand in trade as long as they remain the major player in Iron Ore. They purposely inflated its price last few months to make up for the lost revenue in Coal, Barley, Wine etc.

3. The only way such nations can be punished is through financial sanctions. That can only happen when Yuan becomes a global currency.

4. Australia should also be taught power the hard way. Anglos love to exercise their "freedom of navigation", PLAN should also exercise this freedom around Australian waters.

Or maybe do similar sanctions that China meted to pompeo
Once morrison or freyderberg out of power sanction them
Makes any companies that hire them and their families unable to do business in China
Makes them and their children unemployable in the private sector
This type of sanction is far more effective than trade bans i think

 

[Temstar]

Maybe It's a bit early to say that.

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Last I checked (earlier today), the shadow trade war is working exactly as intended - now the five eyes are facing internal friction since NZ signed that big FTA deal with China, filling that delicious lobster quota in Australia's place. The lot of them are now eyeing each other and sizing up who will be dumb enough to give up some more Chinese market share for others to gobble up.

I believe this strategy is called "United Front" - to draw in secondary enemies into your circle and use them to fight the primary enemy.

 

[Dolcevita]

2. One also has to accept that Australia will continue to have an upper hand in trade as long as they remain the major player in Iron Ore. They purposely inflated its price last few months to make up for the lost revenue in Coal, Barley, Wine etc.

I'm not too worried about Iron ore pricing. Pricing has been falling since the new year mainly because of increase in supplies from Australia, Brazil and South Africa. Moreover, China is committed to reduce steel production this year. As China is world's largest iron ore importer (62%) of iron ore, pricing will continue to fall this year.

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Also bear in mind that China imports $60B of Iron ore and export $200B in metal product. China can easily transfer any increase in iron ore price to exported iron and steel products.

Let Australia continue winning in their mind by inflating their price.

 

[Gatekeeper]

Thanks!

I was curious as China is still supposed to be nominally socialist, but it’s often unclear what types of programs are in place that reflect this.

You can't be too two dimensional. Even at the height of China's 'socialism' under Mao and Zhou's premiership. So me basic needs like medical etc. Is not free as you would expect from a 'socialists' system.

The world is not as black and white as one expect.

 

[Gatekeeper]

Maybe It's a bit early to say that.

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Yes quite.

Why don't you tell what you really think instead of posting one liner. It's not becoming of someone so senior on this forum.

 

[AssassinsMace]

China is the only country in the world growing. They have to lie that China is experiencing electricity shortages because they're not buying Australian coal. Electricity usage is used in economic growth figures so where's not getting Australian coal affecting China? By their logic, China is unaffected and therefore winning the trade war.

 

[steel21]

China is the only country in the world growing. They have to lie that China is experiencing electricity shortages because they're not buying Australian coal. Electricity usage is used in economic growth figures so where's not getting Australian coal affecting China? By their logic, China is unaffected and therefore winning the trade war.

In case anyone has not been following the news.....

GME is up 85x since August.
----------------------------------------------------------------------
from Bloomberg

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A Treasury Department spokesperson declined to comment.

A retail-investor frenzy over the company has caused GameStop’s shares to soar in recent weeks, squeezing hedge funds with large short positions in the company.

Shares in the video-game retailer more than doubled as of 1 p.m. in New York, triggering at least two volatility halts as it at one notched its biggest-ever intraday advance. GameStop has surged eightfold in the past week, adding almost $20 billion to its market value.

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GameStop’s meteoric rise has captivated Wall Street, as an army of small traders spurred on by Reddit message board posts have pushed the company’s stock price to unheard-of levels. Shares in the company began the year at just $19. Hedge funds who held short positions in GameStop, such as

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, have closed out of them as the rally continued, suffering billions of dollars in losses.

While some commentators have cast the frenzy as a populist uprising against Wall Street institutions, others see a dangerous play that could eventually leave investors exposed to major losses. Some wondered if it was the result of purposeful market manipulation.
--------------------------------------------------------------------------

I think this has a National Security nexus:

1. If bunch of mofos on reddit can cause this much chaos, imagine what a wealthy sovereign fund can do.

2. As money moves into equity speculation is could create a opportunity cost as it sucks the oxygen out from tangible investments in greenfield CAPEX, such as labor and real R&D.

3. When the dust settles, there could be a run for the exit as investor seek stable shore of China.

Thoughts?

 

[localizer]

In case anyone has not been following the news.....

GME is up 85x since August.
----------------------------------------------------------------------
from Bloomberg

Please, Log in or Register to view URLs content!

A Treasury Department spokesperson declined to comment.

A retail-investor frenzy over the company has caused GameStop’s shares to soar in recent weeks, squeezing hedge funds with large short positions in the company.

Shares in the video-game retailer more than doubled as of 1 p.m. in New York, triggering at least two volatility halts as it at one notched its biggest-ever intraday advance. GameStop has surged eightfold in the past week, adding almost $20 billion to its market value.

Please, Log in or Register to view URLs content!

GameStop’s meteoric rise has captivated Wall Street, as an army of small traders spurred on by Reddit message board posts have pushed the company’s stock price to unheard-of levels. Shares in the company began the year at just $19. Hedge funds who held short positions in GameStop, such as

Please, Log in or Register to view URLs content!

, have closed out of them as the rally continued, suffering billions of dollars in losses.

While some commentators have cast the frenzy as a populist uprising against Wall Street institutions, others see a dangerous play that could eventually leave investors exposed to major losses. Some wondered if it was the result of purposeful market manipulation.
--------------------------------------------------------------------------

I think this has a National Security nexus:

1. If bunch of mofos on reddit can cause this much chaos, imagine what a wealthy sovereign fund can do.

2. As money moves into equity speculation is could create a opportunity cost as it sucks the oxygen out from tangible investments in greenfield CAPEX, such as labor and engineering.

3. When the dust settles, there could be a run for the exit as investor seek stable shore of China.

Thoughts?

SEC needs to step in probably

 

[AssassinsMace]

I have a friend who had Gamestop stock and he cashed out saying he just paid for his son's UC Berkeley tuition.