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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (113513)	9/18/2015 6:09:47 PM
From: TobagoJack	3 Recommendations Recommended By 3bar dvdw© Secret_Agent_Man Read Replies (2) \| Respond to of 217549

am not worried about china it is however interesting the fed used china as a reason for staying rate rise - either the fed are staffed by spinners, scoundrels or the clueless, and in all cases, wastrels, and the fact that china is tee-up as a reason gives us a hint of desperation china is a saver at the national and individual levels the debt folks point to is well underpinned by asset, even as the speed of debt growth is much faster than same in other jurisdictions at the national level, debt to asset ratio is 22% all-in (national, local, corporate, & individual) at the individual level real estate asset @ 70% and stable, w/ 17% mortgage outstanding, requiring a fall of 80% before folks see red, and real estate fell at worst 5% in most cities, so am unsure what the fuss is about bank deposit @ 24% of asset stocks @ 2% of asset, can go to zero and would not matter expanding rural land reform progressively teeing up money-good collateral for the rural residents, of which 270M live in cities and therefore either do not need their land, can rent out, let family members use, or return to the countryside 30+ years of economic gains for the city folks is about to be balanced by same for larger rural population, just by changing the law prospectively USD 250-600T would be freed up as fiat money well-backed by assets previously on the books as -zero- and now worth US$ 50 - 120T to be fractionally reserve-banked (china bank reserve ratio is actually at ~15%, relative to that of usa at essentially zero given that usa operates on theory of exceptionality, along w/ uk, australia, etc etc - we shall see how exceptional when we see exceptional) to USD 250-600T in any case, china is in process to tee-up a lot of anti-deflationary inflation, but tolerable for special purpose of rebalancing urban / rural growth, lessening inequality, and transition from primarily production to somewhat consumption economy however, as china exports anti-deflation via goods import (primarily food), the banana republics that provide such exported food may be slightly poisoned should their domestic wages not rise in step w/ food pricing inflation, etc etc, especially for the efficient agricultural nations where only 3% of population benefits from food inflation doubt china-exported anti-deflation would reverse the commodity slaughter for the time being, and in the longer term may only balance out the deflation exported by all other jurisdictions, so affording china rural development the next 30 years at better prices per square kilometre than that for the urban during the past 30 years. china is only large economy w/ monetary indicators still in normal space (interest on deposit and loan, bank reserve ratio, etc) because of all of above watch & brief in the mean time am enthusiastic, academically, to see the fed have broached the subject of quantum mechanics / blackhole negative interest rate, and operationally shall start rumination on how best to do better as and when and if - very interesting challenge politically, am guessing, that other jurisdictions would have to do reform and give value to the people, either by confiscation of value at first then give back, or just keep printing and giving, and or defaulting on debt at some juncture ... and so china starts unloading debt in favour of equity, especially those w/i own domain, along those in the minor republics in near and far abroad, reachable by newly energized reconstitution of 'admiral zheng he' diplomacy so, let us watch the more important elections and see which ways for the people by the people against other people the electorates prefer