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2018-02-05 11:09 | Report Abuse
Yes yes, 99% of the investors buy bitcoin
DOW crashing of course no one care about it.
When bitcoin crashing, everything will break loose, because it is about you and me only, it is about the generation of population, the Great Depression will follow.
;)
2018-02-05 11:00 | Report Abuse
Want die then die together.
Bitcoin can bring every investment with it to the ground.
;)
2018-02-05 10:57 | Report Abuse
Tonight DOW confirm water fall?
2018-02-05 03:14 | Report Abuse
The reason all bank cannot be trusted, they are the reason inequality in this society
“The velocity of money went down because it matters who holds the money. The inequality divide in this country has expanded uncontrollably, and the Fed has done nothing to mitigate this. They pump money into the banking system and simply assume the banks will get it out to the consumers. But the banks (nor any business) are not charities. When business is carried out, money generally rises from those who have less of it to those who have more of it. (This is why investment happens. If it were not so, then investment would stop.) The banks are in it to make money. Banks are not the place to inject liquidity if you want it to circulate. Give it to someone who will spend it. Buy Treasuries. Some treasuries were purchased (and some economic growth did happen), but more liquidity was given to the banks. Banks sat on it. Banks will lend and companies will spend only when there is business opportunity to do so. What does business opportunity look like? Simple - customers with money in their pockets. Yes "consumers" are hoarding cash. But it's not the consumers you normally think of. It's the consumers to whom you gave the cash. The Banks, the 1%.”
2018-02-05 03:04 | Report Abuse
Money the M0 already loss 95% of its values
M1, M2, M3 the brainchild of M0 all will suffer the same fate.
:)
2018-02-05 02:57 | Report Abuse
The Federal Reserve System is bigger than the board of governors headed by Ben Bernanke; bigger than its ominous headquarters in Washington, D.C. The Federal Reserve System is the banking system, and while one of its mandates is to maintain “stable prices,” the reality is that the Federal Reserve is responsible for all of the inflation we’ve experienced since the Fed’s inception in 1913. How much inflation is that? Well, the value of the dollar has decreased by more than 95% in that time – and this is according to the government’s own Bureau of Labor Statistics. Here is a list of the three ways in which the Fed creates inflation.
1. Monetizing government debt
When the government’s expenses exceed its income – which they always do – the Treasury Department issues bonds. These bonds are sold at auction to make up the shortfall. Anyone, including individuals like you and me, can place bids on these bonds. Foreign governments, especially China, are major buyers, but so is the Federal Reserve – and here’s the magic trick: When the Fed buys $1 million worth of government bonds, it can pay for them with a check… and, unlike when you or I write a check, the Fed doesn’t need to have any money in its account – the amount of the check is “backed” by whatever its purchasing! Thus, when the Fed writes a check for $1 million, it creates $1 million in new money. This is, by definition, inflation, and it inevitably causes prices to rise.
2. Making loans to member banks
Thirty-eight percent of all banks in the U.S. are members of the Federal Reserve System, which means that they own stock in one of twelve regional Federal Reserve Banks. It also means that they are eligible to borrow directly from the Fed at its “discount window.” This rate is set by the Fed, and, as you might imagine, money lent to member banks is created out of thin air by the Fed – it monetizes the banks’ debt too. The Federal Reserve is the “lender of last resort” to its member banks, who are thus guaranteed a bailout at the Fed’s option. After all, no matter how irresponsible a member bank’s practices, the Fed could always come in and create enough money to bail it out, and this creates what economists call moral hazard in the economy.
3. Setting reserve requirements for banks
The Federal Reserve regulates all banks, not just member ones, and it has the authority to set reserve requirements for banking institutions throughout the economy. In a free market, the reserve requirement would be 100% – banks would not be able to loan funds they did not have. However, thanks to the government-enforced cartel system created by the Federal Reserve Act, banks can create up to $9,000 in new money for every $1,000 on deposit. That’s because, under the current 10% reserve requirement, banks can loan up to $900 of a $1,000 demand deposit – but then if that $900 loan is deposited at the same or another bank, up to 90% of it can be lent, and so on and so on, until the $1,000 makes $10,000 total; $9,000 in new money. Indeed, this is probably the biggest engine of inflation in the economy.
Inflation is not inevitable – it only arises from an expansion of the money supply, and only the Fed controls the money supply. This is why it is so outrageous that one of the mandates of the Fed is to maintain stable prices! However, it is important to note that inflation is not synonymous with rising prices. In fact, if there were a stable money supply, prices of goods and services would go down with time, as advances in productivity and accumulation of capital make things cheaper in real (inflation-adjusted) terms. Thus, hidden in the Fed’s stable-prices mandate is the promise to inflate the money supply – and this represents theft on a massive scale. Who gets the money when the Fed creates it? A privileged class. The rest of us are cheated by higher prices. This is why the issue of the Federal Reserve is so vital – it is the one issue that is the crux of it all.
2018-02-05 02:24 | Report Abuse
Expansionary monetary policy to stimulate the economy typically involves the central bank buying (it is illegal to call it stock market) short-term government bonds to lower short-term market interest rates.[15][16][17][18] However, when short-term interest rates reach or approach zero, this method can no longer work.[19] In such circumstances, monetary authorities may then use quantitative easing to further stimulate the economy, by buying assets of ( it is illegal to call it derivatives) longer maturity than short-term government bonds, thereby lowering longer-term interest rates further out on the yield curve.[20][21]
M1, M2, and M3 already abused to the max, next M4 will be more retard then the previous M3, it will be something that more useless than crypto currency, may be simply a name only asset.
2018-02-05 00:24 | Report Abuse
Valuation:
...................."New paradigm"!!!
....................Delusion....^.denial
.........................Greed..|.|...^.return to "normal"
.....................Public...../...\..|.|..Bull
.............Enthusiasm.../......V...\.....trap
..........Institutional...../.............\...Fear
.................Investors /................|
Smart money........./...................|....Capitulation
.First sell off........./.media...........\
Take.....____....../..attention.........|.Return to the
......Off/........\__/...........................|....../...mean
.....__/.........Bear............................\.../
__/...................Trap.........................V..Despair
___________________________________>Time
________^______^_____^________^
Stealth__|_Aware-|Mania|Blow_off____|
__Phase_|ness___|Phase|Phase______|
________|Phase__|_____|___________|
2018-02-04 15:56 | Report Abuse
M1,2,3 is the greatest junk created by the bankster
2018-02-04 15:52 | Report Abuse
It is against the laws to teach the poor what is M0 1 2 3
2018-02-04 15:51 | Report Abuse
M0 is money base
M1 is asset
M2 is paper asset
M3 is derivative
What is stock market stand when M0 is worthless??
2018-02-04 14:30 | Report Abuse
Good luck keeping your M0 when hyper inflation kick in.
:)
2018-02-04 14:30 | Report Abuse
In the aftermath of the Second World War and during the civil war which followed, Nationalist China suffered from hyperinflation, leading to the introduction of a new currency in 1948, the gold yuan. In the 1940s, larger denominations of notes appeared due to the high inflation. 500 yuan notes were introduced in 1941, followed by 1000 and 2000 yuan in 1942, 2500 and 5000 yuan in 1945 and 10,000 yuan in 1947.
Between 1930 and 1948, banknotes were also issued by the Central Bank of China denominated in customs gold units. These, known as "gold yuan notes", circulated as normal currency in the 1940s alongside the yuan.
Banknotes of the yuan suffered from hyperinflation following the Second World War and were replaced in August 1948 by notes denominated in gold yuan, worth 3 million old yuan. There was no link between the gold yuan and gold metal or coins and this yuan also suffered from hyperinflation.
In 1948, the Central Bank of China issued notes (some dated 1945 and 1946) in denominations of 1, 2 and 5 jiao, 1, 5, 10, 20, 50, and 100 yuan. In 1949, higher denominations of 500, 1000, 5000, 10,000, 50,000, 100,000, 500,000, 1,000,000 and 5,000,000 yuan were issued. The Central Bank of China issued notes in denominations of 1 and 5 fen, 1, 2 and 5 jiao, 1, 5 and 10 yuan.
2018-02-04 13:45 | Report Abuse
M0 is the only legit money in your hand
:)
2018-02-04 13:41 | Report Abuse
Anyone know what is the impact of M0? What about M1, M2, and M3 when M0 is useless??
:)
Time to exercise your little brain.
2018-02-04 13:36 | Report Abuse
M2 is a measure of the money supply that includes all elements of M1 as well as "near money." M1 includes cash and checking deposits, while near money refers to savings deposits, money market securities, mutual funds and other time deposits. These assets are less liquid than M1 and not as suitable as exchange mediums, but they can be quickly converted into cash or checking deposits.
What is 'M3'
M3 is a measure of the money supply that includes M2 as well as large time deposits, institutional money market funds, short-term repurchase agreements and other larger liquid assets. The M3 measurement includes assets that are less liquid than other components of the money supply and are referred to as "near, near money," which are more closely related to the finances of larger financial institutions and corporations than to those of small businesses and individuals.
What is 'M1'
M1 is a metric for the money supply of a country and includes physical money — both paper and coin — as well as checking accounts, demand deposits and negotiable order of withdrawal (NOW) accounts. The most liquid portions of the money supply are measured by M1 because it contains currency and assets that can be converted to cash quickly. "Near money" and "near, near money," which fall under M2 and M3, cannot be converted to currency as quickly.
What is 'M0'
M0 is a measure of the money supply which combines any liquid or cash assets held within a central bank and the amount of physical currency circulating in the economy. In some parts of the world, the M0 supply is referred to as narrow money.
2018-02-04 13:33 | Report Abuse
PBoC Deputy Governor: China's official digital currency will adhere to centralized administration model. Aiming to replace M0 rather than M1 or M2. A prudential attitude should be held on incorporating smart contracts into central bank's digital currency
2018-02-04 02:00 | Report Abuse
Why local bank want so many saver?
One plausible reason, they need money to hoard, to keep their bank to survive, you think only big blue chip company hoard their cash pile?
;)
2018-02-04 01:51 | Report Abuse
1. The global financial system is built on debt. Money is only created when people borrow.
Ans: you want do business, you want borrow money from bank, but local bank all want saver only, they make borrowing money as hard as constipation.
2. The tax system is an incentive program, encouraging people to partner with the government to do what the government wants and needs done.
Ans: no tax incentive to do business in this country, everyone just pay gst only, 43 B gst alone in 2016, 2017 please contribute more gst, erection need money, your business no money your problem. ;)
2018-02-04 01:46 | Report Abuse
I like to play games
Money game is very best game
It give excitement and happiness and also toto
2018-02-04 01:43 | Report Abuse
Rich dad's lesson number one: The rich don't work for money. The people working for money are falling behind financially, and millions are falling into the gap. Savers are losers. Debt makes the rich richer. The global financial system is built on debt. Money is only created when people borrow. People who know how to use debt as money to acquire assets are the richest people in the world. Taxes make the rich richer. The tax system is an incentive program, encouraging people to partner with the government to do what the government wants and needs done. Mistakes make the rich richer. That is why games or simulations are the best way to "practice" making mistakes, learning from your mistakes, then doing the real thing. Crashes make the rich richer. The best time to get rich is when markets crash. Your words become flesh. Become a student of subjects schools do not think are important. [Page 278-279]
2018-02-03 15:36 | Report Abuse
It is illegal to teach the poor people to use Internet, social media is illegal too, because it teach people how to read, but since the smart phone easily accessible, most uneducated poor can now read news on face and book, we and chat.
2018-02-03 15:33 | Report Abuse
It certainly contradict with the theory of age of inequality suggestions. The theory suggest it is illegal to teach the poor to read. :)
2018-02-03 15:00 | Report Abuse
Time to wake up
Face the reality.
:)
2018-02-03 15:00 | Report Abuse
Time to wake up
Face the reality.
:)
2018-02-03 14:18 | Report Abuse
Best loopholes used by the richest to become super rich:
1. Refinance “tangible asset”, basically quantitative easing in disguise, and this time not limited to central banker, anyone can use the QE card at their disposal
2. Take credit card or borrow everything from shadow bank, buy all the available asset, refinance the loan, and more refinance, until the loan is ballooned into millions to billions, took the millions to buy bitcoin and run to other countries
3. Short the market to the ground with margin loan, and make big money, naked short selling is so easy, you can short everything to zero long term, and you no need to borrow any share to short, just cash settlement and you have unlimited shares on hand to sell, as long as you are 101% richer than the buyer, you win the money game.
:)
2018-02-03 14:07 | Report Abuse
In 1974, President Nixon signed an agreement with the royal family of Saudi Arabia. The deal was that, from that point forward, all oil in the world must be traded in U.S. dollars. The U.S. dollar became the Petrodollar. Because after 1971, the year Nixon broke the promise to the world that the U.S. dollar would be backed by gold, the hegemony of the United States – the power and influence of the U.S. dollar – was threatened. By forcing the entire world to buy and sell oil in dollars, the United States and dollar regained its status in the world. Remember, oil is the lifeblood of the world economy. Oil replaced gold as money. The nations that controlled oil controlled the world. World War II was about oil. Japan attacked the United States because it cut Japan off from oil. Vietnam was about oil. The United States did not want Vietnam selling oil directly to China. [Page 40-41]
2018-02-03 13:55 | Report Abuse
Bankster = alchemist in real life?
2018-02-03 13:51 | Report Abuse
Correction the smartest guy use fundamental and technical to
1. Cheat the dump people to chase the stock market bubble
2. Bank issues debt from thin air, they want you to buy their next level worthless product called derivatives
3. The richest smartest guy call Jacob Rothschild call it all an experiment
4. ???
2018-02-03 13:48 | Report Abuse
Want to play money game, one need to be very smart to abuse the money game.
:) knowledge is key in money, fundamental is just a history, technical is the history too, the smartest guy do not need both of them.
2018-02-03 13:44 | Report Abuse
Who is master of money in this forum??
:)
2018-02-03 13:40 | Report Abuse
When you reach the I[nvestor] quadrant, you become a Master of Money. You are no longer a slave to money. Masters of Money do not need money to make money. Masters of Money are alchemists. They turn ideas into gold. They turn ideas into international businesses. When you develop your Midas touch, when everything you touch turns into gold... in today's world, money. Then you teach. The world needs great entrepreneurs. Without great entrepreneurs, the world economy begins to collapse. Capitalism will evolve into socialism, possibly communism... a world of terror, a world of limited freedom, a world of dictators and despots. [Page 188-189]
MBAs are trained to lead via numbers, spreadsheets and quarterly reports. They never learn that kindness is the greatest trait of a leader. They forget that manners are not trivial and respect is everything. They work hard, hoping to one day to join the rate few in the I quadrant, but few will make it. [Page 193]
2018-02-03 13:39 | Report Abuse
Turning zero into millions of dollars is known as the velocity of money... how fast can I keep my money moving, acquiring more assets, then pulling the money out of those assets, without selling the assets, and buying more assets. Another reason why the rich get richer is because the poor and middle class park their money in savings or invest for the long term in a pension. Rather than park their money, the I-quadrant investor keeps their money moving. [Page 180]
2018-02-03 13:38 | Report Abuse
Debt is tax-free money. The phantom income from debt is the time and money you save renting money rather than working to earn it, paying taxes on it, and saving it. You can get rich faster if you know how to use debt as money. [Page 165]
Appreciation is phantom income. Appreciation occurs when the price of a property goes up. A $100,000 property increases in value to $150,000. The $50,000 is phantom income known as appreciation. The problem is that most people have to sell the property to get their hands on the $50,000. Selling triggers a taxable event, capital gains taxes. Rather than sell a property, we pull out our $50,000 in appreciation through debt. Homeowners do this all the time - it's called a home equity loan. The appreciation, the phantom income, comes out as debt and into our pockets tax-free. [Page 165-166]
Amortization is phantom income. Amortization is the reduction of your debt. Every time you make a mortgage, car, or credit card payment, your loan balance is being amortized, or paid off. Mom and pop amortize their debt with after-tax, ordinary income dollars. That's very different than real estate investors' debt, debt that a tenant amortizes. The reduction in debt is another source of phantom income for professional investors. Remember good debt is your debt that someone else pays for. [Page 167]
Depreciation is phantom income. Depreciation is also known as wear and tear. The tax department gives you tax write-offs because, in theory, your investment property is going down in value due to wear and tear. Even if your property is appreciating, going up in value, the taxman gives you a tax break for depreciation, as if the property's going down in value. Depreciation is a major source of phantom income for professional real estate investors. [Page 167-168]
2018-02-03 13:37 | Report Abuse
One reason is that the economy grows when you and I create money by borrowing money. When you pay off your debt, the economy gets smaller. Another reason is that debt makes the rich richer. If debt did not make the rich richer, the rich would not issue you a credit card. The rich don't issue credit cards because they like you. They give you credit because they will make money, via interest, when you use your credit card. They'll make even more when you make only minimum payments on credit card balance. [Page 87]
When banks lower interest rates as they are doing today, they are saying, "We do not want savers. We want debtors." Low interest rates on savings are forcing the middle class into the stock market and real estate markets, hoping for a better return on their money. The middle class is chasing "bubbles" in financial markets. If the bubbles burst, many in the middle class may lose everything. Low interest rates mean this message: Please come and borrow money. Money is on sale." [Page 110]
Phantom cash flow is the real income of the rich. Phantom income is the income the poor and middle class cannot see. Phantom cash flow is not ordinary, portfolio, or passive income - income you can see. Phantom cash flow is invisible to people without financial education. Phantom cash flow is invisible income, a derivative of debt and taxes. [Page 161]
2018-02-03 13:11 | Report Abuse
There have been three major crashes in the first 10 years of this century, between 2000 and 2010: (i) 2000: the Dot-com Crash; (ii) 2007: the Subprime Crash; (iii) 2008: the Big Bank Crash. Three giant crashes - thousands of times bigger than the Giant Crash of 1929. [Page 79]
2018-02-03 13:10 | Report Abuse
In 1974, President Nixon signed an agreement with the royal family of Saudi Arabia. The deal was that, from that point forward, all oil in the world must be traded in U.S. dollars. The U.S. dollar became the Petrodollar. Because after 1971, the year Nixon broke the promise to the world that the U.S. dollar would be backed by gold, the hegemony of the United States – the power and influence of the U.S. dollar – was threatened. By forcing the entire world to buy and sell oil in dollars, the United States and dollar regained its status in the world. Remember, oil is the lifeblood of the world economy. Oil replaced gold as money. The nations that controlled oil controlled the world. World War II was about oil. Japan attacked the United States because it cut Japan off from oil. Vietnam was about oil. The United States did not want Vietnam selling oil directly to China. [Page 40-41]
2018-02-03 13:09 | Report Abuse
The main reasons for the gap why the rich get richer, while poor and middle class get poorer: (1) Globalization: Jobs move to lower wage countries. (2) Technology: If a person who works for money wants more money, an enterprising engineer will create a robot, or software, or AI to replace the worker. (3) Financialization: the science of printing money known as financial engineering. (4) Kleptocracy: crony capitalism. Financialization cannot take place without kleptocracy. (5) Baby Boom bust: This generation’s peak earning and spending years are behind them. They will live longer, act younger, and shake and rattle the global economy until 2050, many taking more out of the economy than they put in. There are 75 million American baby boomers. The next baby boom is the millennial generation (1981-1997). There will be 81.1 million in the United States by 2036. [Page 30-33]
The Western World is old; the New World is young. The New World is the emerging markets such as India, Vietnam, Middle East, South America, Africa, and Eastern Europe. The New World is the millennial generation’s world. They are tech savvy and born into a cyber world. Just as American baby boomers shook up the world, the New-World millennial generation is already shaking up the world. Terrorism, vast migrations of people, Uber, AirBnB, and cyber warfare are the start of the changes. [Page 33]
If we really want world peace, just uses taxes to pay for war. In 1961, during his farewell address to the nation, President Dwight D. Eisenhower warned the world of the growing power of the military industrial complex. America has been at war ever since because war is profitable. War creates jobs and makes many people rich. Eisenhower, a 5-Star Army General, knew firsthand the horrors of war. He was the last President to fight a war with taxpayer dollars. Taxpayers demanded that the war end soon. Eisenhower knew taxpayers did not mind war, but they hated higher taxes. America pays for wars with debt, not taxes. Future generations will eventually pay the taxes for today’s wars. The military industrial complex was spending money on a war we could not win. War may be stupid, but war is profitable. The poor and middle class send their sons and daughters to fight wars, and the rich get richer. The rich on both sides are getting rich while innocent people die. [Page 39-40]
2018-02-03 13:07 | Report Abuse
The world is printing money. Our money is toxic. Our money is unstable causing instability in the world economy. The more toxic money that is created, the wider the gap between the rich, poor, and middle class. [Page 16]
Paper money eventually returns to its intrinsic value – zero. ~ French philosopher Voltaire
Ironically, the banks today have too much money. Yet people are getting poorer. The reason for this is that our money is toxic. Money is making people poorer. People who work for money and save money are getting sick. [Page 25]
In 1976, $1 million in savings x 15% interest = $150,000 annually. You can live well on $150,000 a year in 1976. Today, $1 million in savings x 2% interest = $20,000 annually. That is how much the value of money has gone down. And 2% interest is high today. If inflation is at 5%, you’re looking at losing 3% on your money per year. There is inflation because governments continue to print money. In 30% of the world, interest rates are below zero. [Page 25]
2018-02-03 13:05 | Report Abuse
Most threatening are sleeper attack viruses planted deep in stock exchange operating systems. One such attack virus planted by Russian military intelligence was discovered inside the operating system of the NASDAQ stock market in 2010. The virus was disabled. No one knows how many undiscovered digital viruses are lying in wait. Viruses can erase customer accounts without trace. Used offensively, these viruses can create an uncontrolled flood of sell orders on widely held stocks such as Apple or Amazon. ~ James Richards
2018-02-03 13:03 | Report Abuse
The issue of wealth and income inequality is the great moral issue of our time. ~ Senator Bernie Sanders
The growing gap between the rich and everyone else is a moral crisis and a social time bomb. Bernie Sanders believe in giving people fish; Donald Trump and I [Robert Kiyosaki] believe in teaching people to fish. Although we do not agree with Bernie Sanders politically, we do agree with him in principle. Our differences lie in the solution to this growing problem.
Why “job security” is an obsolete idea. Globalization took out blue-collar jobs. Robots will take white-collar jobs.
Income inequality has since soared to levels not seen since 1929, and it has become clear that the productivity increases that went into workers’ pocket back in the 1950s are now being retained almost entirely by business owners and investors. ~ Martin Ford
Most threatening are sleeper attack viruses planted deep in stock exchange operating systems. One such attack virus planted by Russian military intelligence was discovered inside the operating system of the NASDAQ stock market in 2010. The virus was disabled. No one knows how many undiscovered digital viruses are lying in wait. Viruses can erase customer accounts without trace. Used offensively, these viruses can create an uncontrolled flood of sell orders on widely held stocks such as Apple or Amazon. ~ James Richards
2018-02-03 12:24 | Report Abuse
China's shadow banks
Chinese authorities have become alarmed over the scale of the country's "shadow banking system" and what is euphemistically known as "wealth management products" that are used to hide losses on everything from import and export trades to dud loans.
Moody's last year estimated the shadow banking system had grown to more than 80 per cent of GDP, worth more than $US9 trillion ($12 trillion).
In February, when new banking regulator Guo Shuqing was appointed, tough new lending standards were imposed across the banking sector in an effort to curb the excesses and to limit the growth of debt.
Interest rates rose sharply, credit growth stalled and then shrank. But the tighter lending standards had an unintended consequence. Lenders and borrowers went deeper underground as shadow banking gathered pace.
2018-02-03 12:02 | Report Abuse
Out of touch with reality
This entire genre of "economic-fiction" in the West regarding China pursues the policy of an economic ostrich – put your head in the sand so you can't see reality. Probably the most notorious example of wishful thinking is Gordon Chang. In June 2002, in his book The Coming Collapse of China, Chang declared: "A half-decade ago the leaders of the People's Republic of China had real choices. Today they do not. They have no exit. They have run out of time."
Amazingly, despite China's failure to "collapse," Chang again declared in December 2015: "China's leaders no longer have the ability to prevent the economy from tumbling down… The leadership is now without tools."
Why the BBC that featured this pronouncement by Chang, considers someone who has been perennially inaccurate a China expert shows propaganda bias as opposed to attempts to analyze reality.
There is a well-known saying in economics, to describe the fact that reality sometimes coincides with the views of out of touch economic dogmatists, that "a stopped clock is right twice a day." The "hard-landing" school of analysts of China have succeeded in exceeding this – by never being right!
Some Western media analysis is far better. Martin Wolf, chief economics commentator of the Financial Times, for example, noted this week: "It is likely that Chinese capital, capital markets and financial institutions will become as influential in the world economy in the 21st century, as U.S. capital, capital markets and financial institutions were in the 20th century."
Serious analysts, who want to have an accurate view of China's, and therefore the global, economy and who made predictions of a China "hard landing" or "crash," will honestly admit "I was wrong" – that is to be respected. Unfortunately, experience shows that there are still many clinging to their "fiction."
Publishing such false analysis is wrong in itself. It can also lead to wrong foreign policy positions, or cost companies hundreds of millions, even billions, of dollars due to a wrong understanding of China's economic dynamics.
2018-02-03 11:54 | Report Abuse
China’s economy is in trouble. That’s bad news for everyone, not just the Chinese. Worst still, China’s troubles are only just beginning. Its economic slump is likely to be deep and protracted. This blog will discuss the causes behind China’s Hard Landing.
China’s economy is freakishly unbalanced. Investment (technically, Gross Fixed Capital Formation) makes up 44% of China’s GDP, whereas Household Consumption makes up only 38% of GDP. For the world as a whole, Investment makes up just 24% of global GDP, while Household Consumption makes up 57%.
What that means is that China produces far more than it consumes. In the past, China was able to export its surplus production to the rest of the world. Now, however, the global economy is too weak to continue absorbing more and more Chinese exports every year. Moreover, the world is already saturated with Chinese goods. The following chart clearly illustrates the problem.
2018-02-03 11:45 | Report Abuse
“The markets crash every 10 years and it happens on schedule,” he says. “I don’t know why it’s surprising. 1988, 1998, 2008, 2018. It’s going to crash again. The next one is going to be twice as big as 2008. This is going to be worse than the Fukushima nuclear reactor going off.”
Kiyosaki fears China’s overheated banking system may be the first domino to topple, taking the global economy with it, and though he hopes he is wrong, he sees warning signs everywhere.
2018-02-03 11:38 | Report Abuse
So what’s happening in America today is savers are losers. You know, most parents say to their kids, go to school and save money and work hard. But in 1970 when I graduated from school, $1 million at 15% interest earned me $150,000 a year. Now you could live in $150,000 a year back then.
But in 2016, do this thing called quantitative easing, Bernanke called it Greenspan Put, it’s $1 million at negative 5 basis points, it’s going to cost you $1 million to save $1 million. That is how deteriorated our financial systems have become. And this is one of the causes between the gap — between the rich and the poor.
2018-02-02 21:30 | Report Abuse
Burn all the bankster who try to short Bitcoin
:)
2018-02-02 20:56 | Report Abuse
Bitcoin strong rebound buy now!!
Stock: [HENGYUAN]: HENGYUAN REFINING COMPANY BERHAD
2018-02-05 11:13 | Report Abuse
DOW future down 200 pts!!
Gotta short them all.