George Soros Announces China Must Lead The New World Order

[Hamartia Antidote]

An article based on a 2009 Financial Times interview video on youtube...isn't this a bit weird???

2009

 

[Abba_Dabba_Jabba]

I don't see much difference between USA, China and India. All these countries have a government that exerts huge impact in their own economy.

I don't think so, all three economies are completely different from each other. China more relied on export i.e. dependent on other markets, USA is consumption based with too much deficit and no intent of curbing this bomb whereas India is little balanced in this area, the domestic consumption is good and currently the driver of our growth rate as well but export is struggling at moment due to world economy, but will be balanced once all the FDI's & "Make in India" starts working.

As far as Government intervention is concerned, all these economy has slight interference from their respective govt with China leading then India and later on USA. USA is just very free market and has more chances to go in recession than China, but if USA is in recession then China & India will feel the heat, India may be a little but China a bit more, but China can overcome such shock with gigantic Forex.

 

[ohmrlobalobayeh]

I don't think so, all three economies are completely different from each other. China more relied on export i.e. dependent on other markets, USA is consumption based with too much deficit and no intent of curbing this bomb whereas India is little balanced in this area, the domestic consumption is good and currently the driver of our growth rate as well but export is struggling at moment due to world economy, but will be balanced once all the FDI's & "Make in India" starts working.

As far as Government intervention is concerned, all these economy has slight interference from their respective govt with China leading then India and later on USA. USA is just very free market and has more chances to go in recession than China, but if USA is in recession then China & India will feel the heat, India may be a little but China a bit more, but China can overcome such shock with gigantic Forex.

Yaya the whole world is going down the hill, only India is in full control and enjoying prosperity.

I always love the self-pat-in-the-back rhetoric by our indian posters.

 

[Abba_Dabba_Jabba]

Yaya the whole world is going down the hill, only India is in full control and enjoying prosperity.

I always love the self-pat-in-the-back rhetoric by our indian posters.

Why you act like a moron when you can do much more worse than that, where the hell did I appreciate Indian economy in my post ?

 

[ohmrlobalobayeh]

Why you act like a moron when you can do much more worse than that, where the hell did I appreciate Indian economy in my post ?

Ya im a moron that for going along with your statements that indians have full control n is balanced while other countries are dependent on one another

Ya im a moron that for going along with your statements that indians have full control n is balanced while other countries are dependent on one another

India shall attain a critical mass level of an ecosystem with her own self-sustaining economy. Everything is sourced, produced, handled and consumed within her own borders. Only she is capable of this. US and China are not. Even my grandma agrees with this.

 

[Shotgunner51]

I don't think so, all three economies are completely different from each other. China more relied on export i.e. dependent on other markets, USA is consumption based with too much deficit and no intent of curbing this bomb whereas India is little balanced in this area, the domestic consumption is good and currently the driver of our growth rate as well but export is struggling at moment due to world economy, but will be balanced once all the FDI's & "Make in India" starts working.

True, economies could be very different, as in the case of the three nations mentioned.

China Mainland is categorized as industrial-exports economy (different from resources-exports economy), other countries in this group are Taiwan, South Korea, Japan, Germany, etc. US is obviously high consumption, high imports, high deficits. Just check consumption weight in GDP formula. India is slightly in external deficit but far less than consumption-heavy economies.

Yes, inbound FDI is what India should get to boost development.

https://defence.pk/threads/whos-worlds-4th-largest-creditor-nation.455610/

As far as Government intervention is concerned, all these economy has slight interference from their respective govt with China leading then India and later on USA. USA is just very free market and has more chances to go in recession than China, but if USA is in recession then China & India will feel the heat, India may be a little but China a bit more, but China can overcome such shock with gigantic Forex.

Government factor is naturally more prominent in China's case.

I might as well take this chance to explain about some myths on Forex. Forex is held by central banks, #1 function is deal with BoP purposes (imports, reimbursements of FDI), #2 currency intervention (like you said, absorb shock in forex markets). Mostly in form of cash or high liquidity assets. It's not directly investible.

Take an extreme case, UAE keeps $80 billion in Forex, $1.2 trillion in SWF. Reason is simple, need based.

China's Forex Reserves was way too high. Results? One, suffers investment deficit, highest record was -$200 billion per year. Two, compulsory buying (强制结汇) of PBoC send equivalent amount of RMB into domestic economy (外汇占款), creating pressure on inflation. From 2007 China started to construct SWF to handle the incoming surpluses, following a path well taken by Singapore, GCC, Norway and Hong Kong. By now China's SWF approximates $1.5-1.7 trillion, process continuing.

Like other creditor nations have been doing for decades, China need to invest in outbound FDI. SWF is the state team, POE will also what they should. Examples are plenty, for instance Alibaba invest in Paytm is one case of POE doing ODI to India.

On SWF please read:
https://defence.pk/threads/new-pivo...orlds-largest-sovereign-welfare-funds.455072/

On M&A please read:
https://defence.pk/threads/china-global-m-a-push-2005-nowadays.389578/

 

[lonelyman]

that is not what I means. China has always considered itself as zhong guo with superior civilization, aka the centre of the world and as such, you have little interest of the outside world. no interest of all barbarians with uncivilized out there. asking China to lead the world is as if asking the Chinese stop eating rice with chopstick. if anything it is business that matters. ok, I know you want to deny.

true, china shows little interest in spreading ideology and replicating itself, like the West Christians and USA spread "democracy" around the world

on the contrary, we always say the system work for us might not work for you, unlike the west

 

[Abba_Dabba_Jabba]

True, economies could be very different, as in the case of the three nations mentioned.

China Mainland is categorized as industrial-exports economy (different from resources-exports economy), other countries in this group are Taiwan, South Korea, Japan, Germany, etc. US is obviously high consumption, high imports, high deficits. Just check consumption weight in GDP formula. India is slightly in external deficit but far less than consumption-heavy economies.

Yes, inbound FDI is what India should get to boost development.

https://defence.pk/threads/whos-worlds-4th-largest-creditor-nation.455610/



Government factor is naturally more prominent in China's case.

I might as well take this chance to explain about some myths on Forex. Forex is held by central banks, #1 function is deal with BoP purposes (imports, reimbursements of FDI), #2 currency intervention (like you said, absorb shock in forex markets). Mostly in form of cash or high liquidity assets. It's not directly investible.

Take an extreme case, UAE keeps $80 billion in Forex, $1.2 trillion in SWF. Reason is simple, need based.

China's Forex Reserves was way too high. Results? One, suffers investment deficit, highest record was -$200 billion per year. Two, compulsory buying (强制结汇) of PBoC send equivalent amount of RMB into domestic economy (外汇占款), creating pressure on inflation. From 2007 China started to construct SWF to handle the incoming surpluses, following a path well taken by Singapore, GCC, Norway and Hong Kong. By now China's SWF approximates $1.5-1.7 trillion, process continuing.

FDI is no boon, it should be seen as an external debt, more importantly the domestic investment is seen peaking in last quarter which is encouraging.

Agree with your point on Forex , but Forex can also be used in settling external debts and is very useful in maintaining the currency fluctuation when required. That helps a lot during crisis period.

 

[Shotgunner51]

FDI is no boon, it should be seen as an external debt, more importantly the domestic investment is seen peaking in last quarter which is encouraging.

Agree with your point on Forex , but Forex can also be used in settling external debts and is very useful in maintaining the currency fluctuation when required. That helps a lot during crisis period.

FDI came from outside so naturally it's one form of external liabilities, see RBI statements which is compiled per IMF BPM#6. It is a useful factor to grow domestic economic activities, and of course FDI will leave (withdraw) when their time is done.

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=38199

• Check item B.1 that's FDI in India, stock value at end June 2016 was $294.1 billion
• Also check item A.1 that's FDI from India to overseas, an ASSETS of India, stock value was $143.3 billion
• Also read Reserve assets, that's Forex, $363.5 billion

That's how you see macro financials, which are not easy job to manage. Yes, forex is nothing more than a buffer necessary to support normal BoP (Balance of Payments) activities, and a tool to deal with currency. Is like you keep some cash in wallet for some daily purposes, not your full financial. Forex is just part of a nation's overall financial picture.

 

[nang2]

USA is just very free market

I don't blame you. Many Americans share the same delusion with you. Some of them went to some parts of China and began to scratch their heads wondering how a communistic country could have such vibrant market activities, even more so than most of the US.

 

[Abba_Dabba_Jabba]

I don't blame you. Many Americans share the same delusion with you. Some of them went to some parts of China and began to scratch their heads wondering how a communistic country could have such vibrant market activities, even more so than most of the US.

Sorry sir but USA is just a pure capitalist country, India & China's government has still kept some reasonable restriction which is always good for the economy. But USA's Fed has gone mad and it has resulted in sub-prime crisis. It isn't delusion, it's a fact that Indian & Chinese government has kept some restrictions in public interest or may be to save the economy.

 

[nang2]

Sorry sir but USA is just a pure capitalist country, India & China's government has still kept some reasonable restriction which is always good for the economy. But USA's Fed has gone mad and it has resulted in sub-prime crisis. It isn't delusion, it's a fact that Indian & Chinese government has kept some restrictions in public interest or may be to save the economy.

sorry, pal. since 1913, USA has been marching towards socialism. It has now so much government control that King George would have never dreamed of. Even communistic china is learning from USA for government regulations. There is one article lately with the title of something "Don't blame the free market. We don't have one."

 

[Abba_Dabba_Jabba]

sorry, pal. since 1913, USA has been marching towards socialism. It has now so much government control that King George would have never dreamed of. Even communistic china is learning from USA for government regulations. There is one article lately with the title of something "Don't blame the free market. We don't have one."

You misunderstood between capitalist & socialist ideology, I said capitalist influence on USA govt because of the way this corporates force the respective states govt to enact pro-business regulations or no regulations. For example, the lobby of the oil & gas giants are trying their best to kill the Solar companies in the states.

I used the term "Free Market", because of the low lending rates and USA governments efforts in encouraging consumption of goods and putting no restrictions on banks and other companies.

 

[nang2]

You misunderstood between capitalist & socialist ideology, I said capitalist influence on USA govt because of the way this corporates force the respective states govt to enact pro-business regulations or no regulations. For example, the lobby of the oil & gas giants are trying their best to kill the Solar companies in the states.

I used the term "Free Market", because of the low lending rates and USA governments efforts in encouraging consumption of goods and putting no restrictions on banks and other companies.

For a fun reading, check this out. https://fee.org/resources/the-income-tax-root-of-all-evil/

 

[Shotgunner51]

You misunderstood between capitalist & socialist ideology, I said capitalist influence on USA govt because of the way this corporates force the respective states govt to enact pro-business regulations or no regulations. For example, the lobby of the oil & gas giants are trying their best to kill the Solar companies in the states.

I used the term "Free Market", because of the low lending rates and USA governments efforts in encouraging consumption of goods and putting no restrictions on banks and other companies.

Very sharp observations (and right on topic), can't agree more.