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Pension funds in China now allowed to invest....this is out of control
- Thread starter S2007S
- Start date
Sociopath at the top? Seriously? I think the wisdom and IQ of one single member in the top committee in China tops the wisdom and IQ of 10 US senators and congressmen of your choice in aggregate. Or how about the Republican candidate line up (let's be fair and drop Trump to make it more interesting)? You are seriously suggesting the top lieutenants in China, whether politics or central bank, are not completely outsmarting and outfoxing the whole US senate and congress? Then you have zero clue about China and should maybe sit out this round.
Good point, but there's also a limit to how far you can get with clever management in a corrupt country. Regardless of cleverness, regardless of how much money you print, or how you play with the numbers.... China cannot not surpass the West until people would pay more for a product made in China than made in the West, people would rather do business with a Chinese than a Westerner, people would pay more to live/work/go to school in China instead of a Western country, people would prefer to live under the Chinese government than a Western government... who thinks that is going to happen in the next 50 years? 100 Years? Even in the modern Chinese cities that are fully developed, China cannot compete like that... and as the city salaries are approaching Western salaries, and the cost of living approaching or higher than the West, that limit of growth on the world stage is being reached. Devaluation of the Yuan is not surprising at all, it's the logical way forward, make China cheap again.
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Are you so sure about it? I easily disprove your logic:
You produce a widget that costs 100 (converted to "world currency") and it is of great quality and I produce a similar widget that does the job but is of lower quality and costs only 50. If I get to sell more than twice as you I will have more funds in my pockets to bid for projects in your or my or third countries that we might both be interested in. This works especially well if I keep my own currency artificially low so entice people in your region to still buy my lower quality product because it's only half price of yours.
This is essentially exactly what is happening. And what happened in the 80s with the Japanese money invasion into the US. Hardly any building or golf course in the US existed in which some Japanese did not have a financial interest in or owned it completely. Japan amassed incredible amounts of wealth albeit for different reasons than the wealth created in China right now.
Summary: It's all about demand baby. Some people care about high quality and high standards. But most people primarily care about low prices and are willing to forsake quality. Your logic is contradicted by facts.
You produce a widget that costs 100 (converted to "world currency") and it is of great quality and I produce a similar widget that does the job but is of lower quality and costs only 50. If I get to sell more than twice as you I will have more funds in my pockets to bid for projects in your or my or third countries that we might both be interested in. This works especially well if I keep my own currency artificially low so entice people in your region to still buy my lower quality product because it's only half price of yours.
This is essentially exactly what is happening. And what happened in the 80s with the Japanese money invasion into the US. Hardly any building or golf course in the US existed in which some Japanese did not have a financial interest in or owned it completely. Japan amassed incredible amounts of wealth albeit for different reasons than the wealth created in China right now.
Summary: It's all about demand baby. Some people care about high quality and high standards. But most people primarily care about low prices and are willing to forsake quality. Your logic is contradicted by facts.
Good point, but there's also a limit to how far you can get with clever management in a corrupt country. Regardless of cleverness, regardless of how much money you print, or how you play with the numbers.... China cannot not surpass the West until people would pay more for a product made in China than made in the West, people would rather do business with a Chinese than a Westerner, people would pay more to live/work/go to school in China instead of a Western country, people would prefer to live under the Chinese government than a Western government... who thinks that is going to happen in the next 50 years? 100 Years? Even in the modern Chinese cities that are fully developed, China cannot compete like that... and as the city salaries are approaching Western salaries, and the cost of living approaching or higher than the West, that limit of growth on the world stage is being reached. Devaluation of the Yuan is not surprising at all, it's the logical way forward, make China cheap again.
volpunter, you're right, that's the engine of China's wealth, but my point was China is reaching the point of not being competitive any more. I live in China part-time and 95% of young people here will not work in a factory even for double the salary of the last generation (and I don't blame them). Makes you wonder what happens next, if the huge engine of China's growth is turned off. But I think if they devalue the Yuan enough.... should be fine
What are you talking about? If you indeed lived in China at all you would notice that China already moved its low tech manufacturing to countries like Bangladesh or Africa.
If you ever went to Shenzhen you would notice that you can most anything high tech. Some of the world's most advanced brain and memory research is performed at labs in Shenzhen. Additionally, if you look to produce a high tech product as entrepreneur you can get it done in Shenzhen. The choices and capabilities are higher than anywhere you could find in the US in that regards. China is already transitioning in huge ways to a service oriented and high tech industry. We are talking about artificial intelligence, computing technology, military technology, financial services products (many of which not only rival American products but by far exceed the service level offered in the US; any retail banking products in China are far advanced in comparison to what American consumers are offered. I think you are not seeing the trees for the forest you are standing in. Think pay-without-wallet products, online transfers from your mobile, retail product online purchases and payment systems [far advanced in comparison to what Amazon offers, for instance]).
If you ever went to Shenzhen you would notice that you can most anything high tech. Some of the world's most advanced brain and memory research is performed at labs in Shenzhen. Additionally, if you look to produce a high tech product as entrepreneur you can get it done in Shenzhen. The choices and capabilities are higher than anywhere you could find in the US in that regards. China is already transitioning in huge ways to a service oriented and high tech industry. We are talking about artificial intelligence, computing technology, military technology, financial services products (many of which not only rival American products but by far exceed the service level offered in the US; any retail banking products in China are far advanced in comparison to what American consumers are offered. I think you are not seeing the trees for the forest you are standing in. Think pay-without-wallet products, online transfers from your mobile, retail product online purchases and payment systems [far advanced in comparison to what Amazon offers, for instance]).
volpunter, you're right, that's the engine of China's wealth, but my point was China is reaching the point of not being competitive any more. I live in China part-time and 95% of young people here will not work in a factory even for double the salary of the last generation (and I don't blame them). Makes you wonder what happens next, if the huge engine of China's growth is turned off. But I think if they devalue the Yuan enough.... should be fine
What are you talking about? If you indeed lived in China at all you would notice that China already moved its low tech manufacturing to countries like Bangladesh or Africa.
If you ever went to Shenzhen you would notice that you can most anything high tech. Some of the world's most advanced brain and memory research is performed at labs in Shenzhen. Additionally, if you look to produce a high tech product as entrepreneur you can get it done in Shenzhen. The choices and capabilities are higher than anywhere you could find in the US in that regards. China is already transitioning in huge ways to a service oriented and high tech industry. We are talking about artificial intelligence, computing technology, military technology, financial services products (many of which not only rival American products but by far exceed the service level offered in the US; any retail banking products in China are far advanced in comparison to what American consumers are offered. I think you are not seeing the trees for the forest you are standing in. Think pay-without-wallet products, online transfers from your mobile, retail product online purchases and payment systems [far advanced in comparison to what Amazon offers, for instance]).
That is very different than the arguments you used in your previous post used to "easily disprove [Promagna] logic" and spare us your first hand experience with Shenzhen as to someone who spends a lot of time there, it's very clear that much of your posts about ground experience are fantasies.
Besides I agree China is moving high tech and retail banking products are quite impressive, more sophisticated than what's offered in Europe and I also see the country might and influence growing in the future, there's probably much wishful thinking from the West when it comes to a China crash.
At least the limited times I have been to China (which is over 50 times though I never lived there) I spent learning and observing rather than sticking my dick into Shenzhen whores such as you have done as reported by yourself in your prideful almost childish posts.
That is very different than the arguments you used in your previous post used to "easily disprove [Promagna] logic" and spare us your first hand experience with Shenzhen as to someone who spends a lot of time there, it's very clear that much of your posts about ground experience are fantasies.
Besides I agree China is moving high tech and retail banking products are quite impressive, more sophisticated than what's offered in Europe and I also see the country might and influence growing in the future, there's probably much wishful thinking from the West when it comes to a China crash.
Yeah that, again the figment of your imagination in one of the dryiest cities of East Asia for westerners, like the cops waiving cameras in your face at the border, the impossibility to catch a crossborder cab, the high crime and the 3 ferraris in the same club parking lot of I still wonder which club (it's more Bentley and Rolls Royce in Shenzhen when it comes to luxury cars, i very seldom see a Ferrari).
You are a strong observer of your own delirium, I'll concur to that. Thanks for sharing.
You are a strong observer of your own delirium, I'll concur to that. Thanks for sharing.
Luis, some friendly advice, if you already make yourself look stupid on so many accounts would it not be better to refrain from stepping from one hole into the next? Just a thought. By the way it has not escaped me that you keep on stalking me from one thread into the next. You have not participated in any of the threads in which I posted over the past couple weeks other than replying to my posts. I was until now convinced you are a straight guy but your bizarre stalking starts to make me wonder...
Yeah that, again the figment of your imagination in one of the dryiest cities of East Asia for westerners, like the cops waiving cameras in your face at the border, the impossibility to catch a crossborder cab, the high crime and the 3 ferraris in the same club parking lot of I still wonder which club (it's more Bentley and Rolls Royce in Shenzhen when it comes to luxury cars, i very seldom see a Ferrari).
You are a strong observer of your own delirium, I'll concur to that. Thanks for sharing.
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Typical Voly : escapes the topic and resorts to personal attacks, for those who don't know it mostly comes down to whore, whore mongerer, gay and jew, all hated by our justice and democracy loving Voly.
Quite repetitive but we don t mind harmless peculiarities from fellow elite traders.
Quite repetitive but we don t mind harmless peculiarities from fellow elite traders.