They would be better off redirecting that $174B to other things at the moment.
China to inject $174B of liquidity on Monday as markets reopen
341–350 of 560 posts
Re: China to inject $174B of liquidity on Monday as markets reopen
#342Earlier quoted context omitted.
Prices of houses may be high but affordability is not because of cheap financing. Payments could have been made lower with easier money and even cheaper financing. Asset prices are bounded by the cost of producing new houses and also, high house prices create good jobs for house builders.
"Prices of houses may be high but affordability is not because of cheap financing." A 7 fig house still costs 7 figures. In many countries you can not lock in the interest rates for 30 years but they get re-adjusted after 10 or 15 years. Could be a bad awakening for some. "Asset prices are bounded by the cost of producing new houses" 1. "asset prices" are not only houses. But also Stocks for example 2. The most expen…
The cost of owning a house includes the cost of financing, you can't get around that.
Stocks can also be created.
Land is a hard one. We have no choice but to share it somehow. But overly tight money is really really not the way to make land affordable. Reducing land prices through overly tight money is basically price control through making people too unemployed and too poor to have demand for land. It's an exceptionally destructive approach.
Re: China to inject $174B of liquidity on Monday as markets reopen
#343Earlier quoted context omitted.
Is this about numbers? Or the fact that both countries did something horrific? How about how many wars the Americans started? How many people killed, left without homes? How about the fact that Americans bombed the Japanese? Why can't people accept that bad is bad no matter who does it or how many times they do it. This is not you vs. me, democrats vs. republicans, conservative vs. liberals, Russia vs. US, it's not t…
Killing one person is not as bad as killing one hundred people. Saying "both countries did something horrific" is denying your ability to draw distinctions between things which is the same thing as denying your ability to think. I don't know why you would voluntarily give up your ability to think. > How about how many wars the Americans started? How many people killed, left without homes? How about the fact that Amer…
I see that I have made you upset, you started attacking me, it was not my intention.
I'm a bit confused about your comments, since it would be comfortable to think that you are "trolling", but the fact that you are upset is clearly a sign that you believe in what you are saying.
My guess is that you are young and above average intelligence, I'm sure that you can look things up on Wikipedia, I'm old and not so sharp anymore, so I'll also look things up, hopefully we can all get better educated on what all these countries did.
Writing in English is hard at this time of the night, so I'll sign off, I wish you the best.
Re: China to inject $174B of liquidity on Monday as markets reopen
#344Gorbachev used to say that Chernobyl was where the USSR really started to crumble. The disaster made clear how morally bankrupt and technically incompetent the system really was, wiping out any remaining goodwill or trust. Similarly, Katrina was where the semi-fascist US consensus under GW Bush went to pieces. I suspect China will experience a similar moment at some point. This might well be it.
I don't really see how Katrina was any indictment of Bush versus an indictment of how bad the mayor of New Orleans was and how corrupt the state of Louisiana is. Not fascist at all--run by leftists for decades.
Re: China to inject $174B of liquidity on Monday as markets reopen
#345A friend of mine is leaving HK today - he lives there, so this is not a casual trip abroad. He said the level of fear is making it impossible to live there as a single person. The shops and restaurants are closed. Even his own employer shut its doors indefinitely - and they’re just a video production company. The virus won’t be what ruins China. It’s the panic itself.
Speaking of Hong Kong, what impact is this outbreak having on the conflict with Beijing?
The "normal" stuff, HK Government continues to give benefits to all Mainland Chinese, sending all the Face Mask reserve to China instead of giving it to Hong Kong people, ( Or only giving it to its own supporter in HK), refuse to shut its border with China.
Basically adding more fuel to the fire.
Re: China to inject $174B of liquidity on Monday as markets reopen
#346Earlier quoted context omitted.
> However, we must remember that the situation would likely not have occurred in the first place if the people speaking out about it early on weren't punished, which wouldn't happen in most western countries as local governments have way less power and way less incentives to make that kind of thing happen. I'm not saying the Chinese government doesn't have problems, nor am I saying free speech is bad, but I have no i…
Restricted spread of information caused about of month of delay for proper action, as facts were concealed and suppressed by local authorities. If proper action could have been taken in mid-December instead of mid-January, then the spread of the infection could be heavily limited back before it had grown to such large scale as it has now.
Exactly. I read on twitter around Dec 31 that there was such a virus spreading in Wuhan. Around Jan 1, the Wuhan police dep publicly condemned 8 person (the origin of the twitter news) for spreading this information and called it a rumour. Then the gov did everything to hide info and did nothing to prevent its spreading before around Jan 2x. They behaved even like they want to spread it as much as possible because just about two to five days before they made the announcement of the virus outbreak, the Wuhan gov organized a so called 40k family new year banquet -- around 40k Wuhan local families were concentrated together to have a banquet to celebrate the coming Chinese new year. All the events I cited here can be found on China's own newspaper and tv recordings.
Check out this video for the banquet: https://www.youtube.com/watch?v=6kft21UdBFI
Re: China to inject $174B of liquidity on Monday as markets reopen
#347If US or China stock market was to go down, govt will immediately infuse such massive cash that things would be back up in no time. I'm wondering this is why there had been no recession past the entire decade and very likely none ahead. Somehow we have arrived at economic prosperity level where enough wealth is "buffered" to smooth out downturns.
> I'm wondering this is why there had been no recession past the entire decade and very likely none ahead.
I'm taking your "we've solved the business cycle!" comment as my sell signal. Everything is rosy until it isn't. I have a very opposite, pessimistic view, that this great fear of even the slightest downtown means we're just putting off the day of reckoning until it really comes crashing down.
The fact is the prosperity of the past 10 years has come with huge and growing imbalances that can't continue ad infinitum. Deficits are gigantic, and at some point all this money we've been lending will require higher interest rates for people to buy our bonds. When that happens, watch out.
Re: China to inject $174B of liquidity on Monday as markets reopen
#348Earlier quoted context omitted.
You misunderstood. I'm not saying the Soviet system was better or anything like that. I'm saying it's interesting to realize that everyone on all sides are fed propaganda. As 'siracusa23' points out, he is very aware that both Americans and Soviets continue to be fed propaganda. What I said was that today , the vast majority of Americans have no idea they are constantly being fed propaganda, and they openly take offe…
The reason why Americans deny that they are fed propaganda is because the kind of propaganda that exists in America is subtle. It doesn't involve jailing or killing dissidents. Your post (and the parent post) omitted that distinction. My argument is that this distinction matters.
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Re: China to inject $174B of liquidity on Monday as markets reopen
#349Gorbachev used to say that Chernobyl was where the USSR really started to crumble. The disaster made clear how morally bankrupt and technically incompetent the system really was, wiping out any remaining goodwill or trust. Similarly, Katrina was where the semi-fascist US consensus under GW Bush went to pieces. I suspect China will experience a similar moment at some point. This might well be it.
This might be similar, but I see zero chance of Xi's power taking a hit. For as long as party's institutes are intact, he will be there. Some people began to speculate that Xi wasn't seen for the last 3 days, and sudden activity of "party elders," but I bet this is just an enormous amounts of wishful thinking showing up. Xi's "system" has an expiration date attached, but it's not tomorrow. Following on that Gorbachev…
> there were officials who were publicly disobeying his direct orders.
Gorbachev's point was more about public opinion than political machinery or party hierarchies.
Infighting factions had been a fact of life in the USSR since foundation, but the public as a whole still operated on the presumption that the State existed and was working with some degree of competency and some degree of shared purpose (if inscrutable or stupid most of the time).
Chernobyl laid bare that the social contract was effectively broken and the State could not guarantee the most basic protection even from itself. The system as a whole was effectively deligitimized at a very basic level, and it soon became "every man for himself". This is why subsequent attempts to solve matters among hierarchies in the traditional way (coups and so on) just failed - the public had moved on.
Re: China to inject $174B of liquidity on Monday as markets reopen
#350Earlier quoted context omitted.
China is currently fighting 7 wars 1.) internal political war between xi jing ping of the old guards and the moderates. Check sinoinsider if you wish to know more. 2.) internal provincial wars with Tibet, Xinjiang, and Hong Kong. 3.) conflicts with immediate neighbors over the south sea and other illegitimate claims, including Vietnam, Taiwan, Indonesia, and Philippines. 4.) trade wars with South Korea, japan, US, an…
8.) They're in the beginning stage of a huge demographic bomb. China's birth rate is plunging rapidly, consequence of the (now defunct) one child policy and better standards of living. China's population is aging rapidly, and there is no immigration to sustain the labor pool, like in Western countries.
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