I Feel Better Now

It seems China is engineering a soft landing. Thank goodness. Just because the rest of the world has tried to engineer soft landings since Adam was a boy and never managed to achieve one is no reason to think they can't do it. Perhaps they can also engineer a "permantly high plateau from which we will never decline". A tweak here and a tweak there and with a controlled economy it should be a snack. I feel better now!

It seems China is engineering a soft landing.

Thank goodness.

Just because the rest of the world has tried to engineer soft landings since Adam was a boy and never managed to achieve one is no reason to think they can't do it.

Perhaps they can also engineer a "permantly high plateau from which we will never decline".

A tweak here and a tweak there and with a controlled economy it should be a snack.

I feel better now!

China has been a central planning economy for 5000 years. The problem usually starts only when the central planners become corrupt in each dynasty. There was a recent article which I read about the current leadership being an organizational emperor much alike previous dynasties.

Even if there is a housing collasped, the country wouldn't go down unless the party becomes corrupt and loses moral authority over the army. There is simply no viable alternative now for China except for governance based on a central party.

It seems China is engineering a soft landing.

Thank goodness.

Just because the rest of the world has tried to engineer soft landings since Adam was a boy and never managed to achieve one is no reason to think they can't do it.

Perhaps they can also engineer a "permantly high plateau from which we will never decline".

A tweak here and a tweak there and with a controlled economy it should be a snack.

I feel better now!

China has been a central planning economy for 5000 years. The problem usually starts only when the central planners become corrupt in each dynasty. There was a recent article which I read about the current leadership being an organizational emperor much alike previous dynasties.

Even if there is a housing collasped, the country wouldn't go down unless the party becomes corrupt and loses moral authority over the army. There is simply no viable alternative now for China except for governance based on a central party.

Punter

And of course we know there is no corruption at the moment!

Don't get me wrong, China is growing and will continue, but liken it to the US 100 years ago.

Booms and busts are inevitable and China will not escape that dynamic.

Don't get me wrong, China is growing and will continue, but liken it to the US 100 years ago.

Booms and busts are inevitable and China will not escape that dynamic.

I agree the momentum is carrying China. But make no mistake that the central leadership is corrupt and rotten. I won't be naive as to think there is no self interests, but this is a select group chosen based on a critieria much like how Archbishops are chosen in the catholic church.

But then again the catholic church may not be a good example these days. No offence here, I am christian myself.

The most interesting evolution here to watch is how China develops it own style of Democracy which may become the governance of choice in the new era, much like how Greek democracy and British parlaimentary systems influence the last 100 years.

Even more interestingly is the type of power which China will become. Military? Soft Power? Ideology?

cheers

Don't get me wrong, China is growing and will continue, but liken it to the US 100 years ago.

Booms and busts are inevitable and China will not escape that dynamic.

I agree the momentum is carrying China. But make no mistake that the central leadership is corrupt and rotten. I won't be naive as to think there is no self interests, but this is a select group chosen based on a critieria much like how Archbishops are chosen in the catholic church.

But then again the catholic church may not be a good example these days. No offence here, I am christian myself.

The most interesting evolution here to watch is how China develops it own style of Democracy which may become the governance of choice in the new era, much like how Greek democracy and British parlaimentary systems influence the last 100 years.

Even more interestingly is the type of power which China will become. Military? Soft Power? Ideology?

cheers

No argument there Punter.

How about this in the US.

So the FED is thinking about negative interest rates.

In other words they pay you to take a loan.

Why take a million when a billion will pay better.

This has to be good thing!

I mean we can borrow and keep on borrowing and get rich at the same time.

Makes sense to me. Everyone should be rich.

No argument there Punter.

How about this in the US.

So the FED is thinking about negative interest rates.

In other words they pay you to take a loan.

Why take a million when a billion will pay better.

This has to be good thing!

I mean we can borrow and keep on borrowing and get rich at the same time.

Makes sense to me. Everyone should be rich.

How can any one be rich when everyone is rich ?

I think that will be the problem.

100 yrs ago?? china is at the threshold of US and has the momentum behind it... but things never keep trending up as it has for china for 3 decades...the setback is coming and it will be nastier for US.... - ve inrterest cannot happen as people will simply hoard cash so that is out of the question.but the round about way is to buy truckload of bonds (agency,MBS , junk the whole shebang)... Thing is this all sounds great theory but will FED lose its credibilty and USD takes a dump and the global financial system crashes..(if USD crashes) currency is vital cog in the global trade and USD crash will plunge global trade..

Edited by andiron, 15 July 2010 - 08:15 AM.

Yes, the Chinese will never falter; they have the better system; its only up, up, up; they will own us and our golf courses! Wait, haven't I heard this tune before? Hmm, 1980s and those other tricky Asians from the land of the rising sun? Nay, it'll be different this time, right? Right??? They are in their 1st Turning (we are in our 4th) - think our 1950s. They got their 2nd Turning directly ahead - think our 1960s - and how much fun that was for "the man." May their lives be interesting.

If the fed does that USD becomes the major carry trade currency and it would fly up to 1+ May not be fab for equities. Great for bonds and it's not like they need so much to run the house of cards do they. Remember that song in the 80's ...I think I'm turning Japanese...

Edited by zoropb, 15 July 2010 - 08:39 AM.

100% sure China WILL crash! Property bubbles every where they cannot lead the world economy like that.