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AtheistAKASaneBrain
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October 23, 2015, 06:19:07 PM |
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China has built an empire based on poor salaries, job exploitation, and low quality of materials. What happens when you mix that overtime? You may have a time of success, but it's destined to crumble. We are starting to see all of those non sustainable economical methods crumbling. It will be a mix of people being sick of working for nothing, and outside investors getting tired of investing on shit that's cheap.
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dothebeats
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October 23, 2015, 07:05:11 PM |
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But still we cannot argue the fact that China still remains as one of the giants in terms of economic progress. Most companies tend to favor China in terms of manpower/labor because the salary there is cheap. Also, China focuses on the quantity instead of quality on their products, which is surprisingly one of the reasons why they have a fat economy. Slowdown in economy? That's peanuts to them actually. They can regain their wealth easily.
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amazon4u
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Selling Stuff 20% OFF ! See my signature
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October 23, 2015, 07:18:29 PM |
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don't think so...as it turns out the shanghai index has recovered and going upwards, your thread would've been better a month ago when the index was at 2900 ...
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Possum577
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October 23, 2015, 08:53:39 PM |
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LiteCoinGuy,
I don't think we need a video to understand that China is facing "unprecedented economic slowdown". China has had unprecedented economic growth! And what goes up, must come down...all bull markets endure correction.
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7788bitcoin
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October 24, 2015, 03:06:40 AM |
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Not only China, the whole world is facing a potential economic thunderstorm.
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cutesakura
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October 25, 2015, 03:53:10 AM |
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It is a pattern that has caused real damage, because over-optimistic forecasts delay measures that are needed to boost growth, and thus impede full economic recovery. Forecasters need to come to terms with what has gone wrong; fortunately, as the post-crisis experience lengthens, some of the missing pieces are coming into clear focus. I have identified five.
First, the capacity for fiscal intervention -- at least among developed economies -- has been underutilized. As former United States Deputy Secretary of the Treasury Frank Newman argued in a recent book, Freedom from National Debt, a country's capacity for fiscal intervention is better assessed by examining its aggregate balance sheet than by the traditional method of comparing its debt (a liability) to its GDP (a flow).
Reliance on the traditional method has resulted in missed opportunities, particularly given that productive public-sector investment can more than pay for itself. Investments in infrastructure, education, and technology help drive long-term growth. They increase competitiveness, facilitate innovation, and boost private-sector returns, generating growth and employment. It does not take a lot of growth to offset even substantial investment -- especially given current low borrowing costs.
Research by the International Monetary Fund has indicated that these fiscal multipliers -- the second factor overlooked by forecasters -- vary with underlying economic conditions. In economies with excess capacity (including human capital) and a high degree of structural flexibility, the multipliers are greater than once thought.
In the U.S., for instance, structural flexibility contributed to economic recovery and helped the country adapt to long-term technological changes and global market forces. In Europe, by contrast, structural change faces resistance. Fiscal stimulus in Europe may still be justified, but structural rigidity will lower its impact on long-term growth. Europe's fiscal interventions would be easier to justify if they were accompanied by microeconomic reforms targeted at increasing flexibility.
A third piece of the forecast puzzle is the disparity between the behavior of financial markets and that of the real economy. Judged only by asset prices, one would have to conclude that growth is booming. Obviously, it is not.
A major contributor to this divergence has been ultra-loose monetary policy, which, by flooding financial markets with liquidity, was supposed to boost growth. But it remains unclear whether elevated asset prices are supporting aggregate demand or mainly shifting the distribution of wealth. It is equally unclear what will happen to asset prices when monetary assistance is withdrawn.
A fourth factor is the quality of government. In recent years, there has been no shortage of examples of governments abusing their powers to favor the ruling elite, their supporters, and a variety of special interests, with detrimental effects on regulation, public investment, the delivery of services, and growth. It is critically important that public services, public investment, and public policy are well managed. Countries that attract and motivate skilled public managers outperform their peers.
Finally, and most important, the magnitude and duration of the drop in aggregate demand has been greater than expected, partly because employment and median incomes have been lagging behind growth. This phenomenon preceded the crisis, and high levels of household debt have exacerbated its impact in the aftermath. The stagnation of incomes in the bottom 75 percent of the distribution presents an especially large challenge, because it depresses consumption, undermines social cohesion (and thus political stability and effectiveness), and decreases intergenerational mobility -- especially where public education is poor.
Sometimes change occurs at a pace that outstrips the capacity of individuals and systems to respond. This appears to be one of those times. Labor markets have been knocked out of equilibrium as new technology and shifting global supply chains have caused demand in the labor market to change faster than supply can adjust.
This is not a permanent condition, but the transition will be long and complex. The same forces that are dramatically increasing the world economy's productive potential are largely responsible for the adverse trends in income distribution. Digital technology and capital have eliminated middle-income jobs or moved them offshore, generating an excess supply of labor that has contributed to income stagnation precisely in that range.
A more muscular response will require an awareness of the nature of the challenge and a willingness to meet it by investing heavily in key areas -- particularly education, health care, and infrastructure. It must be recognized that this is a difficult moment and countries must mobilize their resources to help their people with the transition.
That will mean redistributing income and ensuring access to essential basic services. If countering inequality and promoting intergenerational opportunity introduces some marginal inefficiencies and blunts some incentives, it is more than worth the price. Public provision of critical basic services like education or health care may never be as efficient as private-sector alternatives; but where efficiency entails exclusion and inequality of opportunity, public provision is not a mistake.
One hopes that a growing awareness of the significance of these and other factors will have a positive effect on policy agendas in the coming year.
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RealBitcoin
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October 25, 2015, 07:30:52 AM |
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If you are the biggest producer on the planet, and export goods to all countries, and in return you get ponzi fiat money or ponzi treasury bonds, then I can really see why their economy is not working. You should not exchange your real goods for ponzi instruments, it is not a good economy plan ![Cheesy](https://bitcointalk.org/Smileys/default/cheesy.gif)
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Raimonn
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October 25, 2015, 11:30:07 AM |
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China is devaluation its coin to continue exporting and this is one of the reasens because chinese exchanges are buying more and more bitcoins on lasts weeks. Chineses knows that they have a problem with its economy based on low price exportation, and they know its goverment will make as possible for exporting more products and possibly devaluate more the Yuan.
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bryant.coleman
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October 25, 2015, 01:00:31 PM |
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China has built an empire based on poor salaries, job exploitation, and low quality of materials. What happens when you mix that overtime? You may have a time of success, but it's destined to crumble. We are starting to see all of those non sustainable economical methods crumbling. It will be a mix of people being sick of working for nothing, and outside investors getting tired of investing on shit that's cheap.
Exactly. In addition to this, they have relied on unethical business practices such as copyright and patent infringement, and dumping of commodities. Also, the government has forced its citizens to invest their money in certain sectors within the Chinese economy, which made these sectors heavily overpriced and unsustainable in the long-term.
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tsoPANos
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October 25, 2015, 04:44:17 PM |
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I don't think the Han people (Chinese) will really slow down. Napoléon Bonaparte once said that China is a sleeping giant. The truth is that it is still sleeping.
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isvicre
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October 25, 2015, 05:04:23 PM |
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This video was very well done and informative. I think same about real estate bubble. China really overbuilt building, houses. Its population grow speed is now slowed down so they could slow building speed too.
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okae
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October 25, 2015, 06:09:02 PM |
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Not only China, the whole world is facing a potential economic thunderstorm.
agree with that, we just need to check how is going with europe in general for example. the current bubble at China is not different from others, in the end is always the same, the speculation about something, now is the turn of china...
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RealBitcoin
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October 25, 2015, 07:39:27 PM |
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China has built an empire based on poor salaries, job exploitation, and low quality of materials. What happens when you mix that overtime? You may have a time of success, but it's destined to crumble. We are starting to see all of those non sustainable economical methods crumbling. It will be a mix of people being sick of working for nothing, and outside investors getting tired of investing on shit that's cheap.
Its hard to do otherwise with 1.5 billion people. But that is not the main issue, the main issue is that they are exporting real goods worldwide, and they get in return ponzi fiat currency or ponzi bonds. The Chinese works hard, and then buys USD or some bonds with his hard earned money, soon to find out that the ponzi system will collapse soon. Instead they should keep the products at home, and could live like kings, but they choose the ponzi economic system instead.
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Pab
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October 26, 2015, 12:49:21 AM |
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What a economic slowdown 6.9% GDP,westerness countrys can only dream about it Now chinise worker is making almostsame money like worker in Central andcentral east EU countrysand hasfull accomodation free,free apparment and free food
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PolarPoint
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October 26, 2015, 12:55:17 AM |
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Not only China, the whole world is facing a potential economic thunderstorm.
China is the world factory. Their growth depends on our growth. We sneeze, they catch the cold. US and Europe economies is in turmoil for years, i am surprised China survived for so long.
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OROBTC
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October 26, 2015, 01:15:59 AM |
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China has built an empire based on poor salaries, job exploitation, and low quality of materials. What happens when you mix that overtime? You may have a time of success, but it's destined to crumble. We are starting to see all of those non sustainable economical methods crumbling. It will be a mix of people being sick of working for nothing, and outside investors getting tired of investing on shit that's cheap.
Exactly. In addition to this, they have relied on unethical business practices such as copyright and patent infringement, and dumping of commodities. Also, the government has forced its citizens to invest their money in certain sectors within the Chinese economy, which made these sectors heavily overpriced and unsustainable in the long-term. Agree with both of you. At some point this large part of China's economy will yield diminishing returns. An economy built on on, well, low quality does not seem to be sustainable to me. China has other big problems: a huge set of debts, bad demographics and terrible pollution. One or more of these three will compound misery for China in the future. Re PolarPoint's comment, yes, China exports less as the rest of the world slows down. A vicious circle. We are seeing the reverse in Peru (my in-laws there run a small bearing import company). Peru is exporting less copper (etc.), and that has just started affecting our sales.
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RealBitcoin
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October 26, 2015, 06:50:34 AM |
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China has other big problems: a huge set of debts
Thats what you get for subscribing to the keynesian ponzi scam. I dont get it why they do it, they call themselves communists, but they are participating in the keynesian ponzi scheme. They got ghost towns full of uninhabited apartments, they can give free apartments to anybody, with car and food aswell. Yet they choose to export that, and get ponzi fiat money in exchange for their goods. I think the biggest problem they have is brainlessness, and huge corruption.
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