Firstly let me make this clear, i speak as a student of economics not as a India/british
Property bubble exits Yes- Why ?
there are two different stories here, property bubble near eastern cost and property bubble near western/central china
Property bubble near cities like Shanghai and Beijing or other big cities are driven by investors, basically family are investing to catch in on every growing property market and to make quick bucks with Rentals
On western/central china the situation is different, here local government are striving to make complete their goal of development. Cities are built and funded by the local govt but the prices are so high the people who it was built for (rural population) cannot simple afford it. China is known for building in advance for future needs, but here it is difficult unless property rate's are slashed extensively
they also have interview with one of china's leading builders
Cost of rising labour cost is inevitable, as people get richer, they will demand more
Spare this forum your half baked crap. Home prices is western china are not inflated like 1st tier city.
Instead of posting useless video, go back to class for more lessons. Look at the garbage you wrote below!!!!!
that's why there is emphasis of a self correcting system, if in a open economy that money market is tight (no easy availability of fund) that pushes the rate of borrowing higher, which means people would borrow less or paymore. This would autocorrect, the best thing to do is let market inject more cash and cool down for a while, this autocorrect the inflation aswell.
Whether money market is tight or loose, that depends on the central bank's monetary policy. Do you even know what is monetary policy?
here is the catch, US prints money on debt bonds sir, a promise to pay it's citizens. Its currency is accept all over the world and its bond have the highest ratings.Its still a stupid idea, but hey, the world is buying US debt bonds and fueling their economy.
chinese currency is circulated in china only, inflation would surpass the value of currency. You cannot point a gun at foreign investor and force them to buy your debt bond. But hell if you could do it, that would keep Chinese economy aflot too
To do that, Yuan would have to be liberalized and put a market exchangeable currency, thats where the problem starts. Supply and demand all over the world affects the market, but hang-on derivative traders are the major players here. They even screw up US dollar. China can force the world to pay in Yuan, that can keep it aflot, but the price of yuan vs dollar or yuan vs euro is still market controlled and changes with economic news and sentiments of people trading world over.
Dumbo, printing money is a layman's term. The ONLY way to print money is to issue bond, there is no other way, Whether Chinese Yuan is circulated within china or not, it's irrelevant. As long as central bank has the enough reserves, the Govt's treasury department is safe to issue bond/print money. If the central bank lacks reserves, then bond will be sold in the international market.
USD is the world's reserve currency, no one has to ability to corner USD, even if you pull all the investment banks together. So what derivatives trader you talking about? This is not Bollywood.
Two reasons, US fed had enough money to buy debt/mortgage bonds and people all over the world bought it too, including people in US the most.
This will depend on the chinese people to buy bonds, Chinese central bank also has alot of cash, but debt in china is increasing, hell even Chinese railways is in debt of $600 billion, mind you unlike US these are Govt debts, 4trillion - $600 billion is alot, simultaneously if the property bubble crashes it catastrophic, people have put their live earnings into investing in property. You see these are chain of commands that leads to the fall, just like the Domino
Spewing garbage like a retard, China public debt is internally owned. Do you even what that means?
CHinese railway debt? Capitalization on every infrastructure project is thru debt, meaning issuing bond. Chinese govt can afford the debt, hence, no outside investors is needed. It's only when you shit broke, then you go to private sector or international investor, like what your Modi is doing now, dumbass!
And if one day these investors call their debt, you're fucked. Like what happened to Greece and Spain. Go learn what some basic marco economic.
You have answered it yourself, it confidence that drives world market.
Chinese debt runs into trillions, govt is spending heavily to fuel growth. In case of a collapse, to reinvest the faith, govt would first have to pay trillions of dollars to its public to clear of it debt. China railways, china steel, according to bloomberg local chinese govt debt is $2.9 trillion alone and there are many more ... the problem that they are state control aggravates the problem, it sends out a signal that the govt has failed not a company, that will bring down the confidence my friend.
Chinese debt runs into trillions? Chinese debts are internally owned!!!! Every bond issued is locally owned by state companies and backed up by CHinese govt reserves. They will never be called. Two, the govt has $4 trillion in reserves.
Wrong, GDP per capita pays an important role, their population is small compared to china and richer compared to that of china.
A fall in these countries, is when the govt interferes. In china it will be the govt coming in to save the govt, kind of strange ?
Incomprehensible.
Agreed, as long as viable solutions come out economy stays afloat.
But you also need to remember that a fall is triggered by one incident, a statement from PNB Paribas about no liquidity in US market shaked the world economy. But the refusal of george bush to bailout banks from a $4 billion debt, made the world lose trillions !
What one incident? It was an accumulation of multiple incidents. The market was already in turmoil. The underlying issue was due to Greenspan's accommodative monetary policy and the lack of regulation by SEC. 1) too easy to take a loan, 2) commercial bank capitalization is too low 3) Hedge fund and derivatives market were unregulated.
And NO, govt is NOT obligated to bail out each and every company. It's a free market, if you are insolvent, you file for chapter 11. Lehman brother wasn't bailed out, and rightly so.
But when it was clear that the some banks are too big to fail, Bush and Paulson approved a $700 billion bailout package for the entire wall street.
Stop acting smart here, don't talk shit that you have no clue about.
