• Beijing rejects IMF's hard-landing warning for China's economy
    16 replies, posted
[QUOTE](Reuters) - A senior Chinese official hit back on Saturday at International Monetary Fund warnings that China's economy faced the danger of a hard landing due to poor asset quality, saying the government was taking action to deal with financial risk. Chinese Vice Finance Minister Zhu Guangyao said China worked closely with the IMF but did not agree with all of its analysis. "In general, we think they are a very professional financial institution, but some of the methodology used and some traditional thinking, they also need reform," he told a small group of Western journalists on the sidelines of the IMF and World Bank spring meetings in Washington. "We hope that their analysis and methodology can really reflect a country's reality," he said. "We said not just to the IMF, but also to the World Bank, that not one size fits all. If your policy suggestion is (to be) a valuable suggestion, you must base it on reality." IMF Managing Director Christine Lagarde warned of the risk of what she termed a "hard landing" in China, the world's second-largest economy, and negative repercussions on other emerging markets in her Global Policy Agenda released at the start of the meetings in Washington on Thursday.[/QUOTE] [url]http://www.reuters.com/article/2014/04/13/us-imf-economy-china-idUSBREA3B0K120140413[/url]
They are seriously going to drive this shit into the ground are they?
Everyone and their dog who has an ounce of knowledge can tell China's economy is going to collapse hard one day.
It won't collapse. It'll just stagnate and the different regions will grow at different rates, with growth generally slowing in the future imo. Collapse, doubtful.
On thing is for certain: If China falls hard everyone else feels it bad.
When you look at what they have down by building all these new cities with most of them sitting empty and some of them taking land that was used to grow crops on. You then know it gonna collapse and will probably look like Detroit in 5-7 years with empty building receiving no repair and maintenance.
[QUOTE=Doctor Zedacon;44531342]Everyone and their dog who has an ounce of knowledge can tell China's economy is going to collapse hard one day.[/QUOTE] Last I heard was that China's economy is improving, not declining.
[QUOTE=himlok;44531597]Last I heard was that China's economy is improving, not declining.[/QUOTE] Everyone loves to join the bandwagon
[QUOTE=erie1555;44531640]Everyone loves to join the bandwagon[/QUOTE] Are you disputing reliable information that China's economy is growing?
[QUOTE=himlok;44531597]Last I heard was that China's economy is improving, not declining.[/QUOTE]It's an unstable climb, exemplified in the fact they're building ghost cities to boost GDP/GNP.
[QUOTE=bord2tears;44531398]On thing is for certain: If China falls hard everyone else feels it bad.[/QUOTE] It's well known and predicted that without China's money, Vancouver's housing market bursts and Canada loses their main export market for all out commodities. The United States loses a minor export market but almost all of their overseas manufacturing. The chinese government controls far too much of the local markets, currency and essentially everything for anyone outside to know exactly where their economy currently stands. I put money on the world learning of their economic collapse less than three days before it happens. There's no way we could get a two week warning, let alone two months.
[QUOTE=himlok;44531885]Are you disputing reliable information that China's economy is growing?[/QUOTE] I was agreeing with you
sure they may be the IMF, they may have access to the most lofty realms of economics and statistics, they may have the most accountants and economists in the world.... but we think they're wrong so they are [editline]13th April 2014[/editline] [QUOTE=pentium;44531937]It's well known and predicted that without China's money, Vancouver's housing market bursts and Canada loses their main export market for all out commodities. The United States loses a minor export market but almost all of their overseas manufacturing. The chinese government controls far too much of the local markets, currency and essentially everything for anyone outside to know exactly where their economy currently stands. I put money on the world learning of their economic collapse less than three days before it happens. There's no way we could get a two week warning, let alone two months.[/QUOTE] specially since they've been doing what caused the 2008 crash since the 90s, they've been loaning money out to themselves, and insuring those loans with their own insurance companies. so they've been shifting their debt out of the goverment, through the state banks, and into the cover of the state insurance agencies. all this means that china's deficit is like an iceberg, and their economy is rapidly transitioning so they need to keep up the illusion of having cash on hand while that happens. now as long as nothing like one of those insurance companies goes broke, they might be able to pull it off. they lost shittons of cash back in 2010-2012 when their super-subsidized renewables market was slammed to the ground, their regional govenors were able to basically write blank checks to the industry in their jurisdiction, which lead to billions (us) being funneled into tons of corporations which all went belly up
[QUOTE=JoeSkylynx;44531213]They are seriously going to drive this shit into the ground are they?[/QUOTE] The chinese main growth or reported growth has been in real estate. It's over 40 percent of their economy yet it is just being built, none traded. When the 2008 crisis happened, it was because western economies real estate market was 10-15 percent of their gdp. It's gonna really fuck them up.
[QUOTE=Paul McCartney;44532359]The chinese main growth or reported growth has been in real estate. It's over 40 percent of their economy yet it is just being built, none traded. When the 2008 crisis happened, it was because western economies real estate market was 10-15 percent of their gdp. It's gonna really fuck them up.[/QUOTE] I hole hearty believe without swift action they will experience the world's worst recession. Imaginary growth can't continue unchecked. Thier middle class has large investments into the stock market. Just think of all those coprations that are listed on the stock market in china who indirectly work with the goverment to improve gdp growth. It will effect more people than the last global recession. But that's just my opinion.
A lot of people don't believe in the chinese stock market because of the large government control in it. Leading to them investing in real estate....It's a really fucking bad investment all around.
[QUOTE=Paul McCartney;44532738]A lot of people don't believe in the chinese stock market because of the large government control in it. Leading to them investing in real estate....It's a really fucking bad investment all around.[/QUOTE] It's also toxic for the cities they buy real estate in. It's claimed (and repeatedly denied because it has the potential to fuck up the local market) that up to 15% of Vancouver homes belong to chinese investors who occupy them on average of two months per year. The effect is "dead zones" where businesses refuse to rent space because the customer traffic is too low to be sustainable.
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