tag:blogger.com,1999:blog-27697009.post192399961686587024..comments2024-02-29T03:21:35.007-08:00Comments on The Great Depression of 2006 : Red China, A Panic That Could Bring The House DownJim in San Marcoshttp://www.blogger.com/profile/09435296419912935381noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-27697009.post-74220669993207054282015-08-31T20:35:41.918-07:002015-08-31T20:35:41.918-07:00Hi dearieme
Thank you for the link. I tend to dis...Hi dearieme<br /><br />Thank you for the link. I tend to disagree with the author.<br /><br />We are not really getting much economic information out of China. We are getting information from suppliers of raw materials.<br /><br />China is a socialist economy run by bureaucrats. They have no idea about surplus inventories or their projected implications as far as corporate survival.<br /><br />Their stock market and real estate boom are based upon the financial incompetency of the people in charge. Get rich and move to the USA.<br /><br />The government obviously knows what is happening, but has no real tools to influence the final outcome.<br /><br />The party line is that free enterprise robs the poor and makes a few people rich. Free enterprise is bad, let's get rid of it. Lesson learned, new approach to follow.<br /><br />I would expect China to go on the gold standard. Figure it out, if they did, at current prices, how many people would own gold? Or put another way, have enough saved up to buy an ounce and leave it untouched. Not many. In the US when we were on the gold standard, people might have an ounce in their grasp at pay day and then it was gone. So the amount needed to back a currency is not as large as you may think. And after it catches on, they can always change their mind and roll the presses. The neat thing, it won't cost them a dime to give it a try.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-26996556862959537652015-08-31T20:07:44.267-07:002015-08-31T20:07:44.267-07:00Hi Joseph
Not sure about N Korea. Their leader ex...Hi Joseph<br /><br />Not sure about N Korea. Their leader executed his own uncle using starving dogs and last week executed his vice president with an anti aircraft gun for disagreeing with him. <br /><br />I do agree that most underestimate the economic potential of Iran. With the sanctions lifted, they can build all sorts of military weapons (to be sold for religious jihads). It would bring the country to full employment--kind of like Germany before WWII.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-29497438384272038692015-08-31T11:50:51.314-07:002015-08-31T11:50:51.314-07:00Happily the economist whose writings I follow in t...Happily the economist whose writings I follow in the Tel (Roger Bootle) tells me not to worry about China. He has other worries, no doubt, but thinks that the collapse of commodity prices, especially oil, will do most of the developed world a good turn. In his article he gives a particularly terse and clear account of the causes of the great credit crisis of 2008. Recommended.<br /><br />http://www.telegraph.co.uk/finance/comment/11834072/China-isnt-the-crisis-some-would-have-you-believe.htmldeariemenoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-64138540787425309122015-08-31T09:09:51.679-07:002015-08-31T09:09:51.679-07:00Under the radar is North Korea beginning talks wit...Under the radar is North Korea beginning talks with South Korea. Also, most underestimate the economic potential of the Iran deal. Joseph Oppenheimhttps://www.blogger.com/profile/09037175611181710409noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-69548420817084253422015-08-30T20:19:02.069-07:002015-08-30T20:19:02.069-07:00Hi Paul Taylor
Thank you for your compliment. I d...Hi Paul Taylor<br /><br />Thank you for your compliment. I deleted it before someone accused me of writing it myself.<br /><br />Contrary to your assertions my literary style and grammar could panic a busload of English teachers.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.com