China's Zombie Economy
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China's Zombie Economy
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Re: China's Zombie Economy
#2It’s bad. Many debt slaves were created in the recent mortgage and housing crisis, and a lot of workers are furious and apathetic working these long hours for little to no pay.
Re: China's Zombie Economy
#3>The Economist projected that China would become the world’s biggest economy by 2018, surpassing the United States.
What annoys me about economists is how often they redefine how they calculate things like "GDP" and "unemployment" and then try to compare their new oranges to their old data apples.
In many respects, if you use the older metrics China has long surpassed America on its GDP output but with the constant revision America still is "number 1".
Same goes for unemployment. You can compare these metrics when you change how they're calculated.
As for China, their youth is now experiencing what many in the West and Japan are familiar with: NEETs/hikkimori.
They don't see the point in working because the cost of living is too high and their wages stagnant so they go the opposite route and do just enough to get by and enjoy life.
I don't blame them either.
Re: China's Zombie Economy
#4>The Economist projected that China would become the world’s biggest economy by 2018, surpassing the United States. What annoys me about economists is how often they redefine how they calculate things like "GDP" and "unemployment" and then try to compare their new oranges to their old data apples. In many respects, if you use the older metrics China has long surpassed America on its GDP output but with the constant r…
> In many respects, if you use the older metrics China has long surpassed America on its GDP output but with the constant revision America still is "number 1".
Maybe, but the Economist is a UK publication. What incentive would they have to prop up the identity of America as number 1?
Re: China's Zombie Economy
#5“ In its closed financial system, exporters must surrender their foreign earnings to the central bank, which creates equivalent RMB to mop up the foreign currencies. This led to the rapid expansion of RMB liquidity in the economy, mostly in the form of bank loans. ”
Can anyone explain this to me? My interpretation is the central bank exchanges exporter’s foreign currency for RMB. How does it become bank loans?
Re: China's Zombie Economy
#6>The Economist projected that China would become the world’s biggest economy by 2018, surpassing the United States. What annoys me about economists is how often they redefine how they calculate things like "GDP" and "unemployment" and then try to compare their new oranges to their old data apples. In many respects, if you use the older metrics China has long surpassed America on its GDP output but with the constant r…
> In many respects, if you use the older metrics China has long surpassed America on its GDP output but with the constant revision America still is "number 1". Maybe, but the Economist is a UK publication. What incentive would they have to prop up the identity of America as number 1?
When I say economists I mean the professionals, not the publication.
Apologies if that wasn't clear.
Re: China's Zombie Economy
#7>The Economist projected that China would become the world’s biggest economy by 2018, surpassing the United States. What annoys me about economists is how often they redefine how they calculate things like "GDP" and "unemployment" and then try to compare their new oranges to their old data apples. In many respects, if you use the older metrics China has long surpassed America on its GDP output but with the constant r…
> In many respects, if you use the older metrics China has long surpassed America on its GDP output
Which older metrics are you specifically using to support that claim and can you show me what China's GDP figure looks like compared to the US under that different model?
Re: China's Zombie Economy
#8Earlier quoted context omitted.
> In many respects, if you use the older metrics China has long surpassed America on its GDP output but with the constant revision America still is "number 1". Maybe, but the Economist is a UK publication. What incentive would they have to prop up the identity of America as number 1?
When I say economists I mean the professionals, not the publication. Apologies if that wasn't clear.
Sure, but it's The Economist saying this in the article as well:
> The Economist now claims that China might never catch up with the US
Re: China's Zombie Economy
#9Question.
For 20 years I've been hearing China will takeover, and also that it is about to collapse.
It seems like daily there is some story about how China will collapse, and then also stories of how it will still takeover.
I did read it, but not seeing what this article brings new.
What is the point being made here? Except, things are bad, and nobody realizes it.
The term Zombie Economy has been used for a lot of years, when will it actually manifest?
Re: China's Zombie Economy
#10“ In its closed financial system, exporters must surrender their foreign earnings to the central bank, which creates equivalent RMB to mop up the foreign currencies. This led to the rapid expansion of RMB liquidity in the economy, mostly in the form of bank loans. ” Can anyone explain this to me? My interpretation is the central bank exchanges exporter’s foreign currency for RMB. How does it become bank loans?
Your deposits are lent out by the bank.