Why is China's Economy Slowing Down?
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Minqi Li: State funded expansion of infrastructure projects is creating over capacity as wages and domestic consumer demand remains low
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Point is chinese can only copy while US can create,innovate so Mina will always b dependent on US for economy.
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Cause Chinese people all have to move to Russia.
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his prediction was right, oil prices indeed fell
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PEAK OIL, that's why.
That's why the WHOLE WORLD is slowing down. -
China's real GDP (aka its real tax base) is shrinking rapidly and it will continue shrinking every year for decades to come due to an inescapable demographic reality. In fact, no other large economy has such a rapidly declining youth population. The number of new entrants to the workforce (and new consumer households being formed) shrank from about 70 million persons and 35 million new households per year in 2005 to about 50 million persons and 25 million new households per year in 2014. Fewer new households created and fewer workplace entrants each year necessarily results in a reduced capacity for domestic consumption; ergo less economic activity, ergo a shrinking tax base. China's rapidly declining population of young adults also explains why salaries for young workers are rising so fast. Why? Because there are fewer and fewer able bodies to fill the available jobs. The only two things maintaining the illusion of growth in China today are government and banking cartel 'investment' into infrastructure and production capacity projects for which there is little or no global or domestic demand, and China's fading real estate bubble. Quite by chance I had the opportunity to visit two of China's newly built, but as yet entirely vacant cities. They come equipped with eight-lane roadways to nowhere neatly lined with rows of empty factory buildings and skyscrapers. Today they call them "ghost cities". Back when I first saw them in 2009, the locals living in the small towns nearby were still saying that millions of new people were going to start moving in 'any day now'. Search, "China's ghost cities" for yourself and be amazed at the folly of it. Why is China shrinking? Simple. Mao's one-baby-per-couple law has come home to roost and is now expressing its natural economic consequences - the are fewer consumers of goods and services. What do you think will happen as growth and prosperity continues to slip away from China's rulers? Will China go quietly into the night or will China follow the US Federal gangster model of prosecuting foreign wars to distract a disgruntled populace by creating the illusion foreign enemies, fiat inflation and pseudo economic growth? A quick look at China's recent foreign relations with Japan, Vietnam, the Philippines, and Korea provides indications of what to expect. Let's hope China remains true to it pacifist roots and steers clear of the gangster Fed model.
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F*&king Paul Kru... I mean Obama.
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I don't see how China can be a Communist, and true Capitalist society. Either, or. China workers may demand more.
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lol, not only is the wall street economy fake but the real economy is also as fake as the cheap knockoffs that China builds all day, every day.
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Fascinating. During the 1980s Poland, a people's republic, underwent a people's revolt against it's communist government. The result was Poland became a capitalist member of the EU; arguably an extreme right-wing economic experiment. China, on the other hand, was a people's republic in the extremist category, where slavery was entrenched as part of the Maoist tradition. There, the surplus of that slavery is being usurped by the elites while the "people" remain uninformed and highly controlled by the state. Will the coming revolution in China be a capitalist or an ultra-communist revolt? In either case can it get more totalitarian than it is now?
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Finally some good news :))
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I cant afford lunch meat. Forget buying a fridge.
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Good interview, ty
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saw the thumbnail, and for some reason was looking forward to hearing his accent again lol
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So China's economy is slowing down due to lack of internal consumerism and state owned projects in areas where that capital is not needed making it a waste of money. On top of that some myself included believe that the crisis affecting many economies is also affecting china... hmnn
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China's karma is what will destroy it as a people and nation.
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Couldnt they find a chinese who speaks better english? This man s accent is so bad i turned it off after a few words.
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It's slowing down, I think, because others are increasing their local buying rather than buying from China.
I'm not sure how the U.S.A. as whole, and other countries could have been STUPID enough to buy from companies other than the companies they worked for. U.S.A. citizens essentially put their local companies out of business by not buying from them. Then U.S.A. citizens, while claiming loyalty to the U.S.A. did even more damage to themselves by forcing local companies to pay them more via unions, strikes, and other methods.
So they gave their jobs away to "inferior" people. They also gave their companies away to "inferior" people. All the while China is selling like wild fire all over the globe and making energy agreements everywhere they can.
China went from nobody to the world's second largest economy in record time. I just find it so difficult to believe that U.S.A. arrogance could actually be that bad that it caused a whole nation to miss that trend.
Now that the world has caught on and finally realized that the world is changing drastically, they now consider China and other countries a serious competitive threat.
This, to me, is probably the true reason China's economy is slowing down. It has nothing to do with exchange rates. Exchange rates mean nothing. That's just petty fighting. China has won it's dominance via sneaky pricing wars. Walmart in the U.S.A. is almost strictly all Chinese product.
I'm for free trade. But the U.S.A. was asleep, to say the least. The U.S.A. still has the technological advantage. China won on price and sneaking into markets and playing on the arrogance of dumb U.S.A. citizens. Now that the U.S.A. and other countries have woke up, they have a chance to keep their technological advantage.
China isn't far behind technologically, and in many areas superior. China's next MAGIC TRICK, now that it has won the manufacturing wars and is now the world's second largest economy, will have to be either further dominance through manufacturing. But that will be difficult now that the competitors are finally awake for once in a long time. Asians have also been dominating the educational achievements in the U.S.A. as well.
China's next MAGIC TRICK could emanate from it's huge population and all the energy and other agreements it's quietly made all over the globe while it's competitors were gloating about their superiority and China's lack of quality.
China is effectively, not technically, the biggest owner of Walmart. If the founder of Walmart were alive, he would easily be the wealthiest person in the world by FAR.
So in terms of who will be the wealthiest country in the world in the near future. I can honestly say, for the first time in my life, that I can't say. The U.S.A. is very powerful. But now that other countries are losing their hate of science and embracing it, it's catch-up time. And catching up fast is what they've been doing. With the internet and education spreading like wild fire, even third world people will be able to enter the game.
But for now, the world's opinion of China has drastically changed. Former British rule is STILL having a strong effect on the world.
I'm all for freedom for everyone. I'm so excited to see how economic wars will play out in the near future. For now it will be the U.S.A, China, etc. as the leaders. But I have a feeling we might see some unexpected players like Mexico and others shock the world.
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