Meanwhile in China....

happylucky

I completed a sale of Sydney property to Chinese buyer last week. They made a knockout bid an hour after the first open house on condition of full exchange taking place the next working day. Contrasting that with the painfully lengthy chain-free sale of a place in London 12 months ago, I was thrilled to find out what an efficient and motivated conveyancing process can look like!

Graham_Devon

Generali wrote: »

The roller coaster is going back down again:

http://www.bloomberg.com/news/articles/2015-07-27/chinese-stock-index-futures-drop-before-industrial-profits

Another 50 billion is about to be injected by the government again according to the BBC.

Madness. This is after previous injections. Just how much do the people and the government now stand to lose!?

purch

padington wrote: »

Wouldn't it make more sense for China to invest in a country less dependent on a stable Chinese economy right now ?

There are none left :eek:

Generali

Graham_Devon wrote: »

Another 50 billion is about to be injected by the government again according to the BBC.

Madness. This is after previous injections. Just how much do the people and the government now stand to lose!?

It's fiat money, they can just print some more.

It's only FX where you can't control the market at all in effect as the market is huge and you can't print foreign currency. Actually you can but the foreign country would get very upset.

antrobus

Generali wrote: »

It's fiat money, they can just print some more.....

Besides it's 50 bn yuan. Which is only about £5 bn in real money. Or one fifth of a Northern Rock. Must be petty cash to the Chinese.:)

purch

Graham_Devon wrote: »

Just how much do the people and the government now stand to lose!?

Everything.

Pumping money into things is now the only way to keep the wheels spinning.

This has been evident for a long time.

The people who make the rules have decided to change the rules.

As long as we all go along with it, it won't all end in tears.

Now the Chinese have joined the fun, there is nobody left to shout "Look....he not wearing any clothes !!!"

padington

purch wrote: »

Everything.

Pumping money into things is now the only way to keep the wheels spinning.

This has been evident for a long time.

The people who make the rules have decided to change the rules.

As long as we all go along with it, it won't all end in tears.

Now the Chinese have joined the fun, there is nobody left to shout "Look....he not wearing any clothes !!!"

Why are the wheelbarrows not now a better steal than the money ?

1) Is it because everyone else is printing ?
2) Or is it because Germany of yesteryear printed loads more than we're doing now
3) or because we're only printing what we're losing somewhere else ?
4) Or because the newly printed money is seeking solace in things like houses and not wheelbarrows ?
5) Or now we make more wheelbarrows as the loose money circulates ( something which couldn't happen in Germany because metal was needed for war efforts ) ?
6) Or because the cost of making wheelbarrows has been coming down because the raw materials are easier to find or automation is reducing the cost of making them ?

An answer to that question would be gratefully received.

DiggerUK

There is no way of knowing when government ministers will go from promising to do 'whatever it takes'.....to shrugging their shoulders and going 'whatever'......
In the interim, China is doing what everyone else does.
..._

Thrugelmir

DiggerUK wrote: »

In the interim, China is doing what everyone else does.
..._

China does what it wants to do. One wonders if the cracks are getting to big to paper over. After all official data is viewed with scepticism by many.