Holy based. Pay up
Chinese Economics Thread
- Thread starter Norfolk
- Start date
Implications here are that if Goldman Sachs and all those western finance firms dare to screw the Chinese public the way Johnson & Johnson its customers, the CPC has the will and the power to hold those individuals personally liable for all debts payable.
Gotta love the Chinese government, they're even more badass than i could imagine.
This time since the USA is trying to stifle China’s development, China is going to bring the entire western world (including the Netherlands for refusing to sell China the necessary tech) crashing down into economic hell and refuse to help any of them until they give China everything they need since the USA has cross China’s red lines one to many times, the USA owes China hell and back. And until China bleeds the USA dry, China shouldn’t help the USA at all given that the USA is a nation of backstabbing cowards
So what? Evergrande and the whole real estate issue were inevitable to happen.
What is going now is a much needed structural shift on the economy. I can see that shift happening for a minimum of 2 more quarters (2021 Q4, 2022 Q1).
If China manages to shift its economy then it is game over for the West.
Xi and his team are probably thinking, "whats better? 1 trillion property sector gdp or 300 billion in new tech/industries". This is why the Gov is now cracking down on the property sector. It is far far better for the country if investment shifts to the real economy (not to empty houses)
Contrary to your doom and gloom talk, I am actually feeling more confident that ever on the Chinese economy with the Government having the political will to deal with (old) fundamental structural issues
Evergrande has about 1.5 million homes under construction that people have already paid a down payment for. China will keep Evergrande alive to finish those homes not to cause social unrest. After that its anyone's guess what will happen to Evergrande. I don't think they are going to go back on the 3 red lines. There has been a strategic decision made to shrink the real estate sector in the economy so that capital can be deployed for more productive uses. The dollar bond payment is just to calm the nerves about Evergrande abroad.
Yeah ... but ...
1. What I remember of those pictures in the ECO-101 textbook is that the demand line and supply curve, were all on the same chart. If supply curve shifts, the price goes up or down.
2. That guy probably never worked in a factory. If there is a production issue, because machines breakdown, and parts can be defective, then all production is delayed. How many items are need to make a car? I think the ICE engine of today has over 1000 parts. Missing one of them, and production stops. If production is delayed, then delivery times goes up. That has been reported in the auto industry, including layoffs of workers.
3. Alternative explanations for those graphs include
i) poor infrastructure, such as Los Angeles ports at capacity, cannot go any faster
ii) transportation problems, as the Americans have reported that used car prices jumped because low production of new cars, also they ran out of truck drivers meaning no one can deliver the goods ordered on time
4) After the pandemic, it is not business as usual
Eventually we will arrive at business as usual, but no one knows when that will be.
The pandemic wiped out people and companies with the economic lock downs. When people and companies try to get back to work, we do not know who is still left. Trying to find new suppliers slows everything down.
The economy in the US is still living in the shadow of the pandemic, and will be for a while. Another year, maybe two.
Eventually we will arrive at business as usual, but no one knows when that will be.
The pandemic wiped out people and companies with the economic lock downs. When people and companies try to get back to work, we do not know who is still left. Trying to find new suppliers slows everything down.
The economy in the US is still living in the shadow of the pandemic, and will be for a while. Another year, maybe two.