Eric Schmidt: China is the most dangerous superpower on Earth.

[jhungary]

Scaling GDP/cap (actual figures) and then comparing and scaling inflation (in percentage) ? No you cannot do that. That is such a colossal mistake.

Yes, US GDP/cap is more than 4X China. But cost of basic items are probably 4X less in China. I know in China if you are a peasant, the government will give or lease you a large piece of land to build a house and to grow whatever you want. Public Transport is efficient and cheap unlike in US where you might have to own and maintain a car. So each country is different and so the poverty line are different due to the local cost of living and conditions. I know a year ago China increased the poverty line and actually added more people to receive benefits. So as the country progresses and the poverty is reduced, the poverty line will move up. So the reason for the poverty line in US being much higher.



Boy, are you hard to understand.
So exporting deflate local market while exporting inflate domestic market ? What are you saying here ?

I am not an economist. But at least I know how to check if a country is doing OK.

First you look at the country current account (Mostly imports and exports and FDI). Ie is the country making money? For China the current account is positive. So China is making money, raking in about US$200 billion a year.
You also look at the budget. Is it balance ? For China it is actually positive.
Then inflation. China is 2.5% is low. Low inflation means you can use fiscal means to stimulate the economy (if needed).
Then GDP. For China it is positive. So China is still growing.
Then Check your external debt. See if your GDP growth is based just on borrowing (Like in US).
There are many other figures but I would start with the above.

China GDP is in very good shape. It is just not balance. Ie too much GDP is based on infrastructure. But then infrastructure are also long term investment which will bring future dividends. And if there are signs of slow down and China needs to stimulate the economy it has more than a few means.
Why do you think the Chinese RMB has increased 14% over the past 5 years. A stronger RMB will also help to control inflation too.

Dude, did you actually read my post or you just rant without even looking at other people post.

1.) % can and need to scale down, when you look at inflation, it represent purchasing power. And the purchasing power is differnet when you earn US$42000 and when you earn $12000

When you are talking spending power, you cannot talk about % like they do in mathematics. When you have $1000 in your hand, you are more incline to spend $100 (10%) of your money then you would when you have $10 in your hand and you have to spend $1 (10%) on something.

The basic purchasing power (or spending power) is depending on a scale, not the mathematical %.

2.) I never say I believe a "Healthy" inflation in the first place, you need to be clear about that

Why? Chinese have a 4 times weaker spending power than united states, not that Chinese won't buy anything but rather Chinese "Can't" buy anything. With a standard nominal GDP per capita is 13,000 Which is exactly the same amount set to US's Poverty line requirment. You cannot use the same situation in United States and put it toward China. if a "Healthy" inflation do exist and it's 2-3 % in US. Then it should be scale down to a quarter of that in China to reflect the actual purchasing power.

I said, IF an healthy inflation do exist. The case in the US would not be the case in China.

I never believe an healthy inflation can exist. So i don't understand why you want to say my point is incorrect on whatever ground. We simply have a different view.

 

[gambit]

The gall of some people is really funny!
Only idiot would want to emulate the economic shxthole that US is in.

A lot healthier than your Malaysia, buddy.

My house is 3000 square feet on .24 acre. And mine is average. Yours, if you have any?

 

[JSCh]

A lot healthier than your Malaysia, buddy.

My house is 3000 square feet on .24 acre. And mine is average. Yours, if you have any?

What do that have anything to do with economics?

 

[gambit]

What do that have anything to do with economics?

That our economy is superior to Malaysia in many ways. So superior that a single man like me can afford a house that could hold 3 generations of Malaysians.

 

[Nan Yang]

That our economy is superior to Malaysia in many ways. So superior that a single man like me can afford a house that could hold 3 generations of Malaysians.

A 3000sq ft house! I wonder how much is it worth now ? he he he

 

[gambit]

A 3000sq ft house! I wonder how much is it worth now ? he he he

A lot more than you could afford.

 

[faithfulguy]

I disagree with the title. China is not a superpower.

 

[BigDaddyWatch]

That our economy is superior to Malaysia in many ways. So superior that a single man like me can afford a house that could hold 3 generations of Malaysians.

Well, Gambit it seems you have been doing quite well for you're self. However i hope that you don't have a heavy mortgage on that property of yours. Because the way the things are going now in the US is that either Ben Bernanke is going to have to raise interest rate very severely to counter the inflation he has created through money printing and 0% interest rate. If that happens you're mortgage payment will go over the roof while at the same time the value of you're home is going to decline. The value of you're house is being artificially kept high by the FED's policy of 0% interest and the printing of 45 billion dollars a month to buy mortgage backed securities on the market. I hope you don't have to foreclose. Or he is going to break the dollar so that America and Americans can face hyperinflation.

 

[gambit]

Well, Gambit it seems you have been doing quite well for you're self. However i hope that you don't have a heavy mortgage on that property of yours. Because the way the things are going now in the US is that either Ben Bernanke is going to have to raise interest rate very severely to counter the inflation he has created through money printing and 0% interest rate. If that happens you're mortgage payment will go over the roof while at the same time the value of you're home is going to decline. The value of you're house is being artificially kept high by the FED's policy of 0% interest and the printing of 45 billion dollars a month to buy mortgage backed securities on the market. I hope you don't have to foreclose. Or he is going to break the dollar so that America and Americans can face hyperinflation.

If...If...and if. Got it.

 

[Bobby]

China is like ....Sword is given to Monkey....God help now....

 

[BigDaddyWatch]

If...If...and if. Got it.

It's not a issue of if, if, if but its either the one or the other. Ultra high interest rates or hyperinflation.

P.S. i hope you're pension plans are not tied into the stock or bond markets or you will be unable to retire as well.

 

[jhungary]

It's not a issue of if, if, if but its either the one or the other. Ultra high interest rates or hyperinflation.

P.S. i hope you're pension plans are not tied into the stock or bond markets or you will be unable to retire as well.

to be fair. Interest rate and Inflation in the United States are not as bad as in China or you can say the Situation in China are not anywhere better than that in the United States, my family own homes in Australia, America, Mainland China and Hong Kong. No matter where you are, one thigns are always and ALWAYS ring true. You have to be able to afford your mortgage, if you cannot afford your mortgage before you take one on. Then doesn't matter where you are, you are doomed to fail

You cannot, look at it in a way where you live in one place then you think of an economy of another, yes, they do have a cheaper way and cheaper price in China but you do need to know, people in China earn less, A LOT less than that in the United States. On average, a average entry level clerk earn somewhere around USD 28,000 - 30,000 a year while the same job in China earn maybe some where about USD$ 1500-3000, of course for a Chinese person, who live and work in China would have no hope in buying a property in the United States. But for an American, this is a normal thing to happen.

When you look at the news and looking at how people losing their home in the United States, most of the case is not because the economy is that bad and they cannot afford it. But rather a case of "In over their head" . You need to know, before the second mortgage storm hit US. the lending requirment are VERY VERY VERY lax in the US. And a normal worker earn about 20k-30k per year can easily borrow 600k to buy a big house and live a suburban dream. But if you earn 20-30k a year, there are no way you can afford a 600k-800k hourse in 20-30 years. People are stupidly think they can pay off if they can borrow the amount. And the lax guildline mean there are no safety line to fall back on if the user is stupid. And hence many people lose their home. Simply they are in over their head. Not because of the economic downturn.

Again, failure owning a home has nothing to do with infaltion. In term of inflation, some post before already quoted US actually have a lower inflation rate than China, it's just people are either mislead into they can own a bigger home they can afford to. Or people are simply acting stupidly by borrowing more than they can repay.

I don't suppose you know the ins and outs of properties market in the United States, if this post looks like offending you, i am here to pre-apologise

 

[Nan Yang]

A lot more than you could afford.

Good for you. So you are not the average American.

The average Californian now owes $304,000 in mortgage debt, surpassing every other state in the country. This is a 2.5-percent decrease from 2011 but does not signify an improving market. Instead, experts say the decrease was largely caused by a high amount of foreclosures wiping out old mortgages.

Californians also have an average of almost $10,000 in student loan debt, nearly $14,000 in auto loan debt and more than $7,000 on their credit cards. Some years, these unsustainable levels of debt lead to hundreds of thousands of bankruptcies. In 2010, 251,400 people and couples filed for personal bankruptcy in California.

Lose your job, miss a few payments on your house and SUV and you will be out on the street pushing a shopping trolly!

Debt Can Lead to Foreclosure
While the statisticians can supply us with a plethora of facts and on how much debt Americans are in, the human costs of America’s debt problem — though real and serious — are harder to calculate. They reside in the millions of personal stories and countless legal forms and financial files all across the country, and they will be subject to review by the social scientists and economic essayists of the future.

These statistics also shed light on the human cost of debt:
•Total bankruptcy filings in 2011 — 1.4 million.
•Number of homes that went into foreclosure from 2009 through 2011 — 7.6 million.
•Mortgage delinquency rate in July 2012 — 7.58 percent.
•Homes foreclosed upon in 2011 — 1 in 69.

 

[gambit]

Good for you. So you are not the average American.

But...I am an average American. Contrary to what you may perceive from watching news that focused primarily on bad news, most homeowners in the US are not losing their homes, only those who are foolish enough to get in over their heads in recent years. Most homeowners bought their homes long before the current economic downturn and mortgage crisis. Any house in my neighborhood can support at least two generations of Malaysians. And that is a sh1thole that most in Asia would love in be in.

 

[RIMPAC]

A lot healthier than your Malaysia, buddy.

My house is 3000 square feet on .24 acre. And mine is average. Yours, if you have any?

stop day dreaming man. I would be surprised if you own your own house. You live in a retirement house. That ain't your own house dude.