User 143167

U.S. Treasuries: China's Dilemma

China has to export its good because there is no enough domestic demand. However, that is not because they don't have the people who will demand those goods. It is only because its inequality between rich and poor is too large.
US demand provides an easy strategy for the Chinese government to meet their authority and self-interest(corrupti... one party system) while keeping the economy and labor market on fast growth. In that sense, the Americans are the best friends and offere greatest help to those corrupted and greedy political cadres in China, who ironically the US always accused in its public media.
If China changes into a system with more balanced income distribution among its citizens, China can surely consume most of what it produces and thus don't bother to export them to the US. That will change the whole game of the world. Therefore, for Americans, you'd better hope China government is as ruthless and corrupted as before.

China's Worst Bear Market

This ferocious bear market in China doesn't reflect the economic fundamentals in the Middle Kingdom, but all about the fact that TRILLIONS of formerly non floating shares (at cost of basically ZERO) can now be taken profits on the market at whatever price starting last winter. And make it even WORSE, there are still TRILLIONS TO COME!
Any markets will crash like this if it becomes a cheating machine.