Eric Schmidt: China is the most dangerous superpower on Earth.

[ashok321]

BLAHBLAHBLHA.Why should we revolt when everything goes fine.It,s indian that needs a revolution like what those maoists are doing.

China has a Authoritarian rule, while there is a democracy in India.
India has problems because its ruled by non ethnic white people who have no interest in India - just loot n scoot.
So Indian drawbacks are noted.

Indians are weak, never heard any large scale revolution in their history no matter who was ruling them.

I agree about it.

 

[jhungary]

that is your concept of economics 101 which focus all on I & E and in particular on I for the solution of China's economiy

You have to revisit the formula on expenditure side of GDP! When foreign investments pour in for establishing Companies in China, it serves several purposes. I hope you know that and its impact on GDP. Second relying on import to maintain growth of the economy? what loads of S**t!

China has surplus manpower. The crux is how to well ultilised znd optimize usage of the resources. It is still not at the full employment level so there is still competitions as well as availability in the labour force!

As for investment, China is investing all over the world. Check your information before you talk nonsense again.

So, you are saying with all the GDP increase, China will never suffer an inflation? Open your eyes mate, China already have a high inflation rate and probably one of the highest in the world.

You know what casued the inflation??

Yeah, China have surplus labor but how do you stay competitive if all you have is man with their thumb stuck to their bottom? YOU HAVE PEOPLE BUT YOU HAVE NO JOB...........This is the problem. If you have nearly satruated % of employment vs manpower, THERE WILL NOT BE A BUNCH OF PEOPLE BELOW THE POVERTY LINE AND THE FINANCIAL GAP WILL NEVER OCCUR.

Things will not be better if you sit on your arse and expect the domestic market can digest all the product. You can't, things will not get better. Then your "VAST LABOR FORCE" will become a liability instead of asset.

Please, before you lecture me, can you please go back to textbook and get some basic principle of economic.

 

[Ayush]

Indians are weak, never heard any large scale revolution in their history no matter who was ruling them.

we won our independence. just Google india's history.

 

[shuttler]

So, you are saying with all the GDP increase, China will never suffer an inflation? Open your eyes mate, China already have a high inflation rate and probably one of the highest in the world.

You know what casued the inflation??

Yeah, China have surplus labor but how do you stay competitive if all you have is man with their thumb stuck to their bottom? YOU HAVE PEOPLE BUT YOU HAVE NO JOB...........This is the problem. If you have nearly satruated % of employment vs manpower, THERE WILL NOT BE A BUNCH OF PEOPLE BELOW THE POVERTY LINE AND THE FINANCIAL GAP WILL NEVER OCCUR.

Things will not be better if you sit on your arse and expect the domestic market can digest all the product. You can't, things will not get better. Then your "VAST LABOR FORCE" will become a liability instead of asset.

Please, before you lecture me, can you please go back to textbook and get some basic principle of economic.

You are one of the most absurd psoters on the forum. You gave up arguing on import and export, investment and now you are on inflation.

Here is the inflation chart of China:

China Inflation Rate

Except in 2008, tell me which part of the chart is most dangerous during the 10 year period and on an high inflation alert when the Country's ecomony is growing at one of the fastest in the world amidst the global downturn! Now the inflation rate is at a comfortable 2.5%

This is the recent chart listed by many countries:

Inflation Rate | Country List

This is india in the past 10 years:

And the situation facing China's manpower is not shortage but mis-matching, proper training and allocation and ahem aging of it! Our unemployment rate is around 4%. We still have about 100 million people living under the poverty line.

Stop these nonsense kid. You are just wasting bandwidth here. Based on what I see, you have the greatest potential of failing all elementary economic exams on earth but one!

 

[darkhero]

You are one of the most absurd psoters on the forum. You gave up arguing on import and export, investment and now you are on inflation.

Hi brother, stop talking to that idiot. with the time, you can do something more useful. he hates China and he is a shameless liar.

 

[jhungary]

You are one of the most absurd psoters on the forum. You gave up arguing on import and export, investment and now you are on inflation.

Here is the inflation chart of China:

China Inflation Rate

Except in 2008, tell me which part of the chart is most dangerous during the 10 year period and on an high inflation alert when the Country's ecomony is growing at one of the fastest in the world amidst the global downturn! Now the inflation rate is at a comfortable 2.5%

This is the recent chart listed by many countries:

Inflation Rate | Country List

This is india in the past 10 years:

And the situation facing China's manpower is not shortage but mis-matching, proper training and allocation and ahem aging of it! Our unemployment rate is around 4%. We still have about 100 million people living under the poverty line.

Stop these nonsense kid. You are just wasting bandwidth here. Based on what I see, you have the greatest potential of failing all elementary economic exams on earth but one!

Lol..dude, you do know you are not comparing your country to some third world nation where inflation rate can be as highas 44%.......

Your economy is the 2nd Largest in the world (3rd if you counted EU)

Let's do a GDP/Inflation ranking using the data you provided, shall we??

1st USA - Inflation rate 1.70 (Decrased from 1.80)
2nd China - Inflation rate 2.50 (Increased from 2.00)
3rd Japan - inflation rate -0.10 (Increased from -0.20)
4th Germany - inflation rate 1.70 (Decreased from 2.06)
5th France - inflation rate 1.30 (Decreased from 1.40)
6th Brazil - inflation rate 5.84 (Increased from 5.53)
7th United Kingdom - inflation rate 2.70(unchanged)
8th Italy - inflation rate - 2.20 (Decreased from 2.31)
9th India - inflation rate - 7.18 (Decreased from 7.24)
10th Russia - inflation rate - 7.80(Increase from 6.60)

Ok, let's recap what i said.

So, you are saying with all the GDP increase, China will never suffer an inflation? Open your eyes mate, China already have a high inflation rate and probably one of the highest in the world.

Did China suffer from inflation? Yes, being 5th out of top 10 GDP and being just top 10 out of top 20 GDP. I would say China suffer from Inflation problem, and the trend is on the rise with a relative large margin (jumped 25% form 2.0 - 2.5), in case you don't understand, 25% is a VERY BIG PERCENTAGE.. So, did China have a high inflation rate? Yes. And they probably are one of the world highest (I DID NOT SAY WORLD HIGHEST) Inflation country in the world.

Did you even read or can read what i say?? dude, you just put a graph out and PROVED my point for me.

When you ask why i bring the topic from I/E to Investment to Inflation, this question itself show how dumb you are regarding how economic work. If you still fail to see the logic, i can't help you. Please go enrol in a university if you can and study the arse off until you reach my level. Then maybe then, we can talk. otherwise you just keep posting evidence proofing i am right and keep saying my word are nonsense does not help your case.

And you don't only have 100 millions people living under proverty line, you have 100 million people live on 1 dollar a day, THAT's WAY BELOW PROVERTY LINE........Depending on How much and which standard you are using, at least 20% of population according to world bank live under $2 per day, to those who cannot do the calculation yourselve. That's about 300 million people. And $2 a day is also way below poverty line requirment for most country. Most country uses $5 a day to set proverty line. Which is about $1825 per year. And if you live with that amount in the united states, the only way you can survive is to live in the street, you can't even able to afford 2 meal a day.[B] If you uses American Standard (Which is set at 13000/year), well, let say the Chiense GDP (PPP per capita) not even reach that, so can i say all of China is under poverty if we uses American Standard??[/B]

I don't know where you live, but you certainly don't seems to live in those area, that's why you can blow bubble like you do as you are doing now, you don't need to believe this is what actually your country's doing, that does not mean it is not true.

lol, if you have to compare, Do not only compare to 1 single country. I can compare Russia to Sudan, which is 7.6% vs 44%, and i can say Russia economy is doing good when you just cmpare to any random country. If you want to compare, compare it to someone near your own output.

I laugh at your comment.

 

[beijingwalker]

moderate inflation is good,no country can develop fast without having some kind of inflation.During Mao reign there was absolutely zero inflation neither was any pay increase,but I think China's fast pay increase beats the inflation and Chinese Yuan appreciates against US dollar steadily,due to those factors China's domestic market surges ahead big time.

of course if you have a runaway inflation at 20% annually like what happens in Vietnma,you are in serious trouble.

 

[Nan Yang]

Lol..dude, you do know you are not comparing your country to some third world nation where inflation rate can be as highas 44%.......

irelevent mumbo jumbo snipped.

I laugh at your comment.

You are hard to understand. There is such thing as a healthy rate of inflation. It is about 2-3%.

Today, most economists favor a low and steady rate of inflation.[9] Low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy

The Good Aspects of Inflation

In a fact that is surprising to most people, economists generally argue that some inflation is a good thing. A healthy rate of inflation is considered to be approximately 2-3% per year. The goal is for inflation (which is measured by the Consumer Price Index, or CPI) to outpace the growth of the underlying economy (measured by Gross Domestic Product, or GDP) by a small amount per year.

A healthy rate of inflation is considered a positive because it results in increasing wages and corporate profitability and keeps capital flowing in a presumably growing economy. As long as things are moving in relative unison, inflation will not be detrimental.

Another way of looking at small amounts of inflation is that it encourages consumption. For example, if you wanted to buy a specific item, and knew that the price of it would rise by 2-3% in a year, you would be encouraged to buy it now. Thus, inflation can encourage consumption which can in turn further stimulate the economy and create more jobs.

Read more: http://www.moneycrashers.com/what-is-inflation-definition-causes-inflation-rate/#ixzz2K5qDaKb8

 

[NiceGuy]

of course if you have a runaway inflation at 20% annually like what happens in Vietnma,you are in serious trouble.

so,its time to make a mess and cover SCS(east sea) with sea mine to Blackmail China for ransom

We're not good at running business but we're good at fighting with big boys,dude

 

[jhungary]

You are hard to understand. There is such thing as a healthy rate of inflation. It is about 2-3%.

Dude, the article is about the UNited States. Yes, of course a little bit of Inflation is good on US economy as people don't buy stuff lately. That is because we have a stronger individual purchasing power than China with 4 : 1 rating.

If you put this sock into Chinese feet, it will be another story.

Why? Chinese have a 4 times weaker spending power than united states, not that Chinese won't buy anything but rather Chinese "Can't" buy anything. With a standard nominal GDP per capita is 13,000 Which is exactly the same amount set to US's Poverty line requirment. You cannot use the same situation in United States and put it toward China. if a "Healthy" inflation do exist and it's 2-3 % in US. Then it should be scale down to a quarter of that in China to reflect the actual purchasing power.

Again, if we use the US guideline to Poverty in China then, i would say about 80% of Chinese live UNDER POVERTY line in the US standard. That's absurd if you ask me.How many Chinese earn more than US$13000 per year?? US$13000 is a median of supervisor and managerial wages in China......

There are no universal situation on trade and marketing. Only one rule apply everywhere. Market value depend on supply and demand. That rules always hole true. If Chinese keep leaning on exporting their product, there will be a point the world will see Chinese product is not that cheap anymore.

Exporting product deflat value of your local market (Import cheaper goods oversea hence keep the price low) while exporting inflat your domestic market.( As part of your supply has gone oversea) For a healty economy, one must get as closes to balance of trade as possible.

Now you tell me what is the "Healthy Inflation" rate to China.

 

[gambit]

this question itself show how dumb you are regarding how economic work.

Looky here...The credit card itself has been around since early 1950s, but China did not adopt its use until the late 1980s. Given how much of the Chinese population are still living under the poverty line, it is highly probable that the mainland Chinese members here do not make enough to qualify for a credit card and can barely maintain a novelty call a 'checking account'. Cut them some slack.

 

[jhungary]

Looky here...The credit card itself has been around since early 1950s, but China did not adopt its use until the late 1980s. Given how much of the Chinese population are still living under the poverty line, it is highly probable that the mainland Chinese members here do not make enough to qualify for a credit card and can barely maintain a novelty call a 'checking account'. Cut them some slack.

lol, come to think of it, i don't have a credit card too..........But that is for a whole other reason Hehe

 

[Nan Yang]

Dude, the article is about the UNited States. Yes, of course a little bit of Inflation is good on US economy as people don't buy stuff lately. That is because we have a stronger individual purchasing power than China with 4 : 1 rating.

If you put this sock into Chinese feet, it will be another story.

Why? Chinese have a 4 times weaker spending power than united states, not that Chinese won't buy anything but rather Chinese "Can't" buy anything. With a standard nominal GDP per capita is 13,000 Which is exactly the same amount set to US's Poverty line requirment. You cannot use the same situation in United States and put it toward China. if a "Healthy" inflation do exist and it's 2-3 % in US. Then it should be scale down to a quarter of that in China to reflect the actual purchasing power.

Again, if we use the US guideline to Poverty in China then, i would say about 80% of Chinese live UNDER POVERTY line in the US standard. That's absurd if you ask me.How many Chinese earn more than US$13000 per year?? US$13000 is a median of supervisor and managerial wages in China......

There are no universal situation on trade and marketing. Only one rule apply everywhere. Market value depend on supply and demand. That rules always hole true. If Chinese keep leaning on exporting their product, there will be a point the world will see Chinese product is not that cheap anymore.

Exporting product deflat value of your local market (Import cheaper goods oversea hence keep the price low) while exporting inflat your domestic market.( As part of your supply has gone oversea) For a healty economy, one must get as closes to balance of trade as possible.

Now you tell me what is the "Healthy Inflation" rate to China.

Scaling GDP/cap (actual figures) and then comparing and scaling inflation (in percentage) ? No you cannot do that. That is such a colossal mistake.

Yes, US GDP/cap is more than 4X China. But cost of basic items are probably 4X less in China. I know in China if you are a peasant, the government will give or lease you a large piece of land to build a house and to grow whatever you want. Public Transport is efficient and cheap unlike in US where you might have to own and maintain a car. So each country is different and so the poverty line are different due to the local cost of living and conditions. I know a year ago China increased the poverty line and actually added more people to receive benefits. So as the country progresses and the poverty is reduced, the poverty line will move up. So the reason for the poverty line in US being much higher.

Exporting product deflat value of your local market (Import cheaper goods oversea hence keep the price low) while exporting inflat your domestic market.( As part of your supply has gone oversea) For a healty economy, one must get as closes to balance of trade as possible.

Boy, are you hard to understand.
So exporting deflate local market while exporting inflate domestic market ? What are you saying here ?

I am not an economist. But at least I know how to check if a country is doing OK.

First you look at the country current account (Mostly imports and exports and FDI). Ie is the country making money? For China the current account is positive. So China is making money, raking in about US$200 billion a year.
You also look at the budget. Is it balance ? For China it is actually positive.
Then inflation. China is 2.5% is low. Low inflation means you can use fiscal means to stimulate the economy (if needed).
Then GDP. For China it is positive. So China is still growing.
Then Check your external debt. See if your GDP growth is based just on borrowing (Like in US).
There are many other figures but I would start with the above.

China GDP is in very good shape. It is just not balance. Ie too much GDP is based on infrastructure. But then infrastructure are also long term investment which will bring future dividends. And if there are signs of slow down and China needs to stimulate the economy it has more than a few means.
Why do you think the Chinese RMB has increased 14% over the past 5 years. A stronger RMB will also help to control inflation too.

 

[Wombat]

I am not an economist. But at least I know how to check if a country is doing OK.

First you look at the country current account (Mostly imports and exports and FDI). Ie is the country making money? For China the current account is positive. So China is making money, raking in about US$200 billion a year.
You also look at the budget. Is it balance ? For China it is actually positive.
Then inflation. China is 2.5% is low. Low inflation means you can use fiscal means to stimulate the economy (if needed).
Then GDP. For China it is positive. So China is still growing.
Then Check your external debt. See if your GDP growth is based just on borrowing (Like in US).
There are many other figures but I would start with the above.

China GDP is in very good shape. It is just not balance. Ie too much GDP is based on infrastructure. But then infrastructure are also long term investment which will bring future dividends. And if there are signs of slow down and China needs to stimulate the economy it has more than a few means.
Why do you think the Chinese RMB has increased 14% over the past 5 years. A stronger RMB will also help to control inflation too.

You also look at the budget. Is it balance ? For China it is actually positive.

No, in fact, its running 127 billion USD (2012) loss (deficit), this mean govt is borrowing to run the country not that it is a big problem now with external debt at above 43.5 % of GDP (2011).

Mind you, this does not count China's local municipal debt which stands at 1.7 trillion (2011), there is fear of massive default something in about 450 billion (as per UBS 2011) but for now it is tagging along!.

This mean combined debt is above or about 68% of GDP.

GDP is doing better than US, but not as good as last couple of year, the number has been lowest from 1999,

Surplus has fallen by 2.6 % in 2012 but it is still a surplus, China is attracting less inward FDI than before.

Overall inflation is about 2.6 % in 2012 but most say this will rise but it is still below central bank target of 4%.

China will not fall over like Greece , but it’s definitely not in the same sweet spot as before.

 

[JSCh]

The gall of some people is really funny!
Only idiot would want to emulate the economic shxthole that US is in.