Chinese Economics Thread

[broadsword]

@abenomics12345

Your contributions are invaluable. I wish you could add to the American Economics Thread and now the Japan economics thread. I'm sure I'm not the only one who wants to hear from you.

 

[abenomics12345]

@abenomics12345

Your contributions are invaluable. I wish you could add to the American Economics Thread and now the Japan economics thread. I'm sure I'm not the only one who wants to hear from you.

Thank you for the kind words.

I'm trying to stay away from dunking on the American/Japanese economy because its too easy.

We are all well aware of the challenges (some of which are fixable some of which are in various stages of malignant/metastatic cancers) in the US/Japan.

In general it behooves us to avoid getting sucked into confirmation biases that simply confirm priors and instead look for ways that things could turn out different to consensus/popular beliefs.

 

[MortyandRick]

i find this to be very practical, apolitical look at the Chinese economy, current situation and future plan. very insightful and consistent with some of our posters here.

 

[manqiangrexue]

i find this to be very practical, apolitical look at the Chinese economy, current situation and future plan. very insightful and consistent with some of our posters here.

Full title should be, "The US declared full economic war, then China banned rare earths, then the US declared Just kidding, we're all friends here."

 

[hereforsemithread]

I've never read a justification for why deflation is bad that didn't rely on invalid axioms.

It increases the real value of existing debt but that's basically the extent of it.
The contention that it dis-incentivizes investment is not borne out empirically given China has had a boom in manufacturing FIA at the same time as its deflation was at its worst.

Most arguments about inflation/deflation are really arguments over what they signify about the state of the macro-economy and what the government should do in response, rather than the importance of prices themselves.

 

[horse]

China has a lot of service deficit, right?

The students studying overseas, the outbound tourist, that is services.

Makes sense. Earn money selling some product, then spend some of that money.

 

[horse]

Waiting for some reporters (i.e BBC) would say "at what cost?" hahahahah

I think I did see an article with a headline from the Guardian in the UK, that went along the lines that with the strength of the Chinese trade surplus that brings along a great weakness too.

Which is really like saying if the trade surplus doubles then the weakness will get much worst.

At this point, they do not even know how to cope anymore.

It is not like the attacks have not worked, they have proved irrelevant and the word unstoppable economic growth and expansion is what is the reality.

Their whole world view, was complete bunk.

So as Chinese trade grows, the country will get weaker. That is their party line, and we know everyone must tow the party line.

Sounds good!

 

[henrik]

China has a lot of service deficit, right?

Does the US have a lot of service surplus?

 

[pbd456]

Does the US have a lot of service surplus?

I thought so. Google, facebook etc. a lot of foreign students. Even japan is getting a lot pf services deficits to usa like netflix and amazon