Rapier: depends on whether you want numerical growth or an increase in the quality of life for the people. They’re different goals, measuring different things.
Again, China is losing money to expatriation overseas. Isn’t this another way of saying that the Chinese are buying up assets worldwide? And the more world assets they own, the better hedged they are against a domestic slowdown? I mean, if you own the mass of the world, you go up and down on the world economy, not your own, which is the best anyone can do.
At the same time, they’re “printing money for bad loans.” You mean via a few money-laundering steps they’re putting ink on paper and then buying a hedgebook of worldwide assets? That sounds like a GOOD thing, basically a free gain, same way the United States does it. Okay, so who do they owe that money to? Berlin? New York? No, they owe it to themselves, which means they have the freedom to re-write it and re-contract it any way they want to. Are YOU going to tell the party they can’t, and fight to stay in a shack away from the new apartments and cities that are presently empty?
That’s not to say the transition and the restructuring won’t be a bloody mess as it decides domestic winners and losers. Just that perhaps we’re not considering all the options they may have.
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