Thing is though, we're reliant on the US in much the same way an employee is reliant on their employer. In the absence of a direct replacement, the consequences of getting seriously offside with the US are very problematic.However for a country like Australia there is nothing to gain by being a "crusader against China". We lose out on trade and gain nothing other than a kudos from America. It's pointless.
Thing is though, we're reliant on the US in much the same way an employee is reliant on their employer. In the absence of a direct replacement, the consequences of getting seriously offside with the US are very problematic.
In that plus economic terms I think thus guy sums it up fairly well what Australia needs to do (also covers the off-topic point of housing but that's only a couple of minutes):
I agree on the treason, but not Biden as he is well past cognitive state.Many points made about China softening up the U.S, including the conspicuous increase of illegal border crossing Chinese males of military age. You might have noticed over the years Biden's reassuring and pacifying remarks to the public about China's harmlessness and how good it is that China is becoming a great power - he's a compromised and treasonous president I believe, not hyperbole.
One point missed by many about current China economics.Interesting and complex article in today's Age from Steven Bartholomeusz.
It is quite long and has a few interesting states like 17 per cent of GDP is being saved rather than invested showing the fear of the populace.
And 90% of Chinese households own their own home with 70% household wealth is attributable to housing.
Obviously the damage to households and their confidence is profound.
So what will Xi do?
Well it is a state controlled economy so quite a lot -
This week interest rates were lowered by 25 basis points.
China can't afford to go too low as this will cause a backlash with other nations and further reduce foreign inflows. it will also weaken further the shaky yuan. Eu is annoyed and is already investigating China for subsidies with their EVs and could extend this.
Much deeper state involvement in the property sector (which Xi would like). The state takes over distressed properties, becomes the main builder of properties and limits private enterprise destroying the speculation, Provides subsidised rentals to low income households to use up the glut in properties, act as the buyer of last resort to save the banks, and generally stabilising the markets.
Foreign direct investment is at the lowest level for 30 years. So fixing that would also be high on China's agenda.
But given all that, no easy way out, no easy solutions. Domestic consumption needs to restart. Deflation is going to happen and shadow banking will also have major problems. Excess factory production is set to continue.
I have only made a short summary and have missed a lot of points.
That assumes that the countries outside of China that produce things do not pit tarriffs or other penalties on Chinese goods.One point missed by many about current China economics.
Since Covid/last 5 years, China(CCP) has switched its loans and investments from housing/real estate toward factories and industrial production: better factories automation for a smaller solvable market;
I expect this to hit the west hardly, not so much us as our industry is already kaput but what is left of US and EU/Japan/Korea industrialisation
After all, I just purchased an MG and if I had gone EV, would have been a BYD.
In all the recent purchased outside food I made in the last 5 years, except for some colorbond, cement , treated pine and mulch, I doubt anything was not made in china.
I would not want to be a BMW Mercedes factory employee in 2024
I agree but China can pressure back economically as well...That assumes that the countries outside of China that produce things do not pit tarriffs or other penalties on Chinese goods.
the EU in particular are experts at this.
Mick
sleeper agent
I am shocked to read you are not holding such a great piece of real estateThe legend of Shangri-la
"There is an ancient Tibetan legend that ... "
Not Held
And we have our western governments knowingly forcing Pfizer jabs on own populace...killing millions ...absence of consideration for either the country or people is widespread even among the so called democraciesThe CCP has about the same level of respect for its own citizens as it does for the rest of the world.
Mick
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?