Hello 2mar$, I have had a bit of time to ponder over the recent policy guidance and decisions by the officialdom north of where I am, and I am feeling bullish.
I am referring to the incipient / tentative / experimental land reform.
There is a media-reported gap / gulf (depending on flavor of media) between the haves and have-nots of china. The gap is true, and the gulf is true.
Generally speaking, it would probably be fair to suppose that the have-nots in the aggregate / by center of gravity reside in the rural and inland area of china, as opposed to in urban / coastal regions.
The officialdom needs to close the gap, else reform / growth would be missing the stability per slogan of reform growth stability.
To close the gap, one can make the farmers richer, and / or make the city folks poorer, or do the trickle-down kick-the-can nonsense which would widen the gulf.
Interesting and little know, the rural folks actually have had claims on farm land for some time, with the area per person depending on the particular circumstances of the village. The issue was that the land could not be .... what is the term? ... monetized.
The direction of the land reform experiment is to allow / enable, enhance / facilitate the private ownership of claims on land, and their legal transfer per rule of making up rules, thus allowing a one-time monetization dividend for the rural folks at the micro economics level, however generating a huge macro economic effect that could last two to three decades, whereby much more debt, economic loading, monetary stuffing, and release of pent-up potential energy can be tee-ed up.
A very exciting development that could potentially propel china GDP on path to 35% of global GDP.
Recommendation, given a new and seriously outsized monetary heat-sink may be tee-ed up w/ geewhizbangohwhoawee effects, prospectively enabling serious debt loading, paper money printing, even as the rmb rises against lesser currencies and major still-global reserve currencies and so making everything china needs cheaper per 'inflation is tame and under control' virtuous circle, perhaps gold, silver, platinum are buys for the next several decades. |
