The Shaolin Monks and the priest of Wudan School must have thrashed you thoroughly, when you attempted to make a pathetic dry joke
Clearly you have never been to Dalian because its a famous summer resort city, where retired general often live there and pollution is not considered terrible. You cannot preach to the Chinese that their cities are polluted because the same accusation can be applied to America, which has some of the worst polluted cities in the world.
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Well clearly your knowledge on India is severely lacking because their cities are also full of pollution where their citizens breath in harmful air. Lets also not forget the river Ganges, which is regarded as one of the most polluted rivers in the entire world. The development model of China has worked splendidly where 600 million citizens have arisen from poverty over a span of 30 years and the level of infrastructure development has been top class. 16000 KM of High Speed Railway, the amount of expressway's even eclipses America and in general the transportation system is in very good condition.
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For your kind information I am a proud Pakistani
One of the main differences between China and its western counter-parts during the financial crisis can be observed when the Chinese Central Bank changed the regulation of reserve ratios, which was a unique policy at the time. Furthermore the Chinese Government did major structural reforms in its economy by shifting its attention to 10 main industries to increase internal demand rather than the reliance on just external demand. In addition the Government of China initiated the internalization of the Renminbi in 2009-10, which had positive effects on the economy. The Chinese Government did fiscal expansion of $4 trillion Yuan in which most of it was allocated to construction projects instead of bailing out companies like in America and this generated millions of jobs. Most of the money was generated by local banks and provincial governments who used the money for appropriate project schemes. Well clearly the American's were interested to purchase export-driven products from China, because your government opted to buy from the Chinese and playing the hypothesis game is useless, because history clearly favored the Chinese and your whining did not change that particular outcome. Some of the biggest banks in the world reside in China and they generate good profits. In fact Agricultural Bank of China who I worked for previously had the biggest IPO in the world in Hong Kong and this was only eclipsed by Alibaba, which is also another Chinese company
China Construction Bank, ICBC, China Bank and Agricultural Bank of China have the one best profit sheets in the banking sector. ICBC has a profit margin of 275.8 billion yuan in 2014.
I will try to deal with your endless nonsense/ Maoist apologetics in a consolidated post.
- Shaolin monks are not in the business of defending Mao’s acolytes. If there is anything you should know about China is how their culture was systematically erased by Mao during the Cultural Revolution, so the monks would have rather liked my Mao jokes.
- Dalian is an overgrown place like any other Chinese city, with dust from non-stop construction everywhere. I was told that for small mercies many projects were stalled at the time I went there due to the impending doom of yet another Chinese bubble, this time the one in real estate.
- Linking a site that lists polluted cities does not tell you the simple fact that these cities are NOWHERE as polluted as Chinese cities are. Very deceitful of you, but entirely expected.
- Yes, i have been to India, and it is also polluted as hell. But part of the blame lies in their misplaced enthusiasm in aping a development model (read: Chinese) whose time has long gone, and which is collapsing right in front of our eyes.
- As for the rest of your China-build-road and China-build-railway gobblygook, congrats for building some roads and railways 150 years past due date.
- I see you will not quit lying about Chinese lending practices. Chinese banks lend shadily to public enterprises that will never be able to repay these loans because they have over-invested so heavily that they will be out of business before the situation improves. Period. Do you know the exposure of Chinese Banks to real estate, steel and infrastructure companies? The first is a bubble about to burst, the second is an industry where Chinese over-production has caused the global steel industry to become a loss-making sector, and the third is a classic example of over-investment in things no one will need after the correction.
- How will Chinese steel companies or real estate companies repay loans when they make losses year after year? For how long will China be able to fudge its numbers and deny that it is collapsing under internal debt?
- The renminbi is still not free floating, and now the Chinese government is being forced to do the reverse of what it was asked to do prior to 2014. In the past six months, it has spent billions of dollars to save it from loosing further. One year everyone is piling on China to stop manipulating its currency, next year China is forced to buy its own currency to stop a fall. Get the picture?
- As the renminbi stabilizes, Chinese exports will become more expensive. Who will buy Chinese then, considering China makes very little of advanced goods and services with low demand elasticity. As if that was not bad enough, let’s see how this mindless drivel of “China is moving from an export-driven economy to a consumption-led economy” will play out. So China will up its consumption at exactly the same time when its bad debt situation will force the banks to zip up? Good luck with that.
- Admit it, China is a laggard that learns economic lessons 80 years after they stop being relevant. When the world economy was contracting in 2008, the Chinese Party of totalitarian dictators decided that Roosevelt’s New Deal was the way to go – create jobs and circulate money by investing in giant infrastructure projects. But they had already been doing it for a while before that, and are still continuing despite the painfully obvious fact that China’s push for infrastructure-building is not matched by a private sector agile or innovative enough to grasp the opportunity.
- What is this “fiscal expansion” you talk about? Have you no sense that Central Banks create money as and when they feel like, the only restriction being inflation and faith in the currency itself. How is the Chinese “fiscal expansion” any different than quantitative easing by any other Central Bank? And pray tell me, while at it, as to how the Chinese Government will “fiscally expand” itself out of the internal debt its banks have built up?
- The China Agricultural Bank script is trading at 3.08 today. It was 2.66 in Oct, 2010. That’s a 15.8% gain in 5 years. ICBC was trading at 4.11 in Oct, 2010 and today at 4.38 – 6.6% gain. China Construction Bank was at 4.67 and 5.26 respectively – 12.6%. Alibaba entered at 93.89 in September 2014, and today is down 39% since then, to 57.41 today. Basically it’s a case of book-building fraud. Don’t worry, that happens everywhere, except we don’t call them our star performers! So that’s it? That’s your yardstick for a stock market?
- As to the profit margin of Chinese Banks, who audits these banks? China adopted IFRS in 2006, but that means little because Chinese Banks are well-known for not declaring NPAs, as they are encouraged to do so until the situation becomes too obvious. There is no systematic writing down of NPAs by Chinese Banks – instead they adopt one-time write-offs to one of the four equally shady state-owned debt disposal companies like Huarong, as and when directed to do so. What sort of practice is that, anyway?
In my next post I will deal with the myths of the New World Order and your misinformed (hopeful?) view about the inevitability of China’s rise to global eminence. You know, your wilful ignorance and propaganda would be no concern of mine, had it not been for the cathartic nature of the delusion and the risk it entails. Too many people are going to lose their shirts over China’s fraud of an economy, and I don’t like that one bit.
You can also tell your shady Bangladeshi wingman and the pidgin-speaking Chinese to join in, if they feel like it. Now go read what the Little Red Book says about strategy when confronted with facts....
Recently changed a lot,thx.
