Hi Elmat, <<Hey I need to look how much I am going to spend there Jay!!>> I will most like be in HK when you visit, if it happens over the weekend, and one enormously satisfying meal and a bunch of cans of beer will be on me:0)
On these, <<HK can contemplate four alternatives: ... Reduce spending ... Increase taxes ... selling land ... devaluate the HK dollar>>
... I am afraid HK is trapped in our service economy.
Reducing spending will make people poor, stop spending, and the enormous government cash will dwindle over time in any case.
Increase taxes will scare businesses away, and make people despondent over future direction.
Selling land requires a healthy economy affording good price, ending with properties that people want to and can buy.
Devaluation ... will serve to lower cost to base in HK, but will do nothing about export from HK, as all our exports are made in China.
Hong Kong must innovate, embrace Southern China, and incorporate the whole of China as a market for HK sourced and world produced goodies, and incorporate China as a source, for goodies shipped all over the world via HK businesses and logistic hubs. HK must also become the premier or the second financial capital of China.
Bottom line, HK must become a better place for China's rich to base themselves than China itself; or we are toast.
Chugs, Jay |
