The main difference between China and US is in China, the gov't gives orders to central banks to lend lend regardless of risk or return on investment when state owned corporations need money. they are ordered to lend and same with interest rates, the central bank in China believe in the gov't controlled economy. or gov't planning or controlled and rigged markets.
you have ghost cities in China where orders are given to create GDP and same with pension funds who need a rising stock market or they are insolvent or banks become insolvent during 2009 when they had massive lossses in subprime loans.
it's not a 'market based' economy. the interest rate of US is not 'market' rates. it's based on orders from the gov't or pressure from banks who borrow money from the central bank, the banks don't have any money to lend. there is a shortage of money with that much debt .
In a FREE market, lenders of capital want the highest rate the 'market' would give them like price of stocks, and buyers want to buy the lowest. central banks are politically 'interference' like Trump threaten to fire the central bank if he raise rates from 40 year lows when unemployment is 5% not 15%
jobs or why people invest are not based on interest rates, demand and price and PROFIT is what drives investment thus creating jobs. or FEAR what is now happening fear of inflation with central bank policy of Inflation, the policy of central bank in the 70's was anti-inflation
now rats are low so the market doesn't correct itself like in truly 'free market' the market is now like ponzi scheme. as long as people don't sell and new money comes in from the central bank the party keeps rolling. on in the musical chairs. the cental bank is like the DJ,,,if the fed stops playing the music, the party is over.
that is the essence of market manipulation by central banks or gov't
then again, most of the money is put into market indexes not individual stocks
in this market not all stocks rise in a rising market
some stocks, you won't buy it even if interest rates was zero and it's free to borrow money to buy it.
with stocks in worthless overpriced stock,,there are no refunds, and sold as is where is buyer beware flea stock market.
you have ghost cities in China where orders are given to create GDP and same with pension funds who need a rising stock market or they are insolvent or banks become insolvent during 2009 when they had massive lossses in subprime loans.
it's not a 'market based' economy. the interest rate of US is not 'market' rates. it's based on orders from the gov't or pressure from banks who borrow money from the central bank, the banks don't have any money to lend. there is a shortage of money with that much debt .
In a FREE market, lenders of capital want the highest rate the 'market' would give them like price of stocks, and buyers want to buy the lowest. central banks are politically 'interference' like Trump threaten to fire the central bank if he raise rates from 40 year lows when unemployment is 5% not 15%
jobs or why people invest are not based on interest rates, demand and price and PROFIT is what drives investment thus creating jobs. or FEAR what is now happening fear of inflation with central bank policy of Inflation, the policy of central bank in the 70's was anti-inflation
now rats are low so the market doesn't correct itself like in truly 'free market' the market is now like ponzi scheme. as long as people don't sell and new money comes in from the central bank the party keeps rolling. on in the musical chairs. the cental bank is like the DJ,,,if the fed stops playing the music, the party is over.
that is the essence of market manipulation by central banks or gov't
then again, most of the money is put into market indexes not individual stocks
in this market not all stocks rise in a rising market
some stocks, you won't buy it even if interest rates was zero and it's free to borrow money to buy it.
with stocks in worthless overpriced stock,,there are no refunds, and sold as is where is buyer beware flea stock market.
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