China in its last three-decades has warranted a higher-growth-rate through lose money-supply and zero-rate-of-inflation, however
economists and analyst doubt Chinese data. Low-inflation and low-wage-demand
increase competitiveness and also through depreciation that means
higher-inflation and lower real-wages and demand, and higher
nominal-exchange-rate to increase demand for exports at the expense of the domestic-demand. It is a surprise that depreciation has not increased inflation
in the data or probably because of wrong-data. China continued to grow in
double-digits for the past thirty-years which was a very long-stretch.
The supper-cycle continued too long with occasional-blips, mostly external.
China economic-growth defies the relationship between money-supply and
inflation, specially the quantity theory of money. It grew double-digits without
generating much inflation. ALL ECONOMICS FAILED… when China is still an
emerging market. The poor wage-bargaining of the Chinese is because the Communes never let the poor
people know about the real inflation so they may demand their productivity wages… The
voices, although no voices, were misinformed. Economists know that
lose money supply and too much investment would increase inflation. It is also
probable that the absence of democracy may have curbed the economist-voices to
criticize lose money supply and inflation. The data is veiled. We do not
hear much from Chinese economists. Only the Premier speaks. The Chinese
interest rates have a downward long-run-trend in the high growth-period. The
Chinese productivity and exports have grown much faster than real wages and, is
reflected in the real-GDP and big surplus in the current-account-deficit (CAD).
Communes have higher spending-power and a lot of local-government-debt has, now, turned bad. China has still fire-power left to chill the overheating caused by
lower interest-rate and the borrowing cost. Missing data for the inflation also
means that the Chinese-growth rate has been a mirage because it is also the
deflator of the real GDP or Gross-Value-Added (GVA). The Chinese domestic
economy never grew that fast except exports… The domestic-economy has suffered
in the name of competitiveness…
China is it's own biggest enemy…
And, it is now trying to be bad with INDIA for a
terrorist state…
INDIA should definitely stop imports from China for
six-months with extendable deadline which would also be good for INDIA because
we can produce at home at lower wages and it would also create employment
opportunities in INDIA. Chinese are too much arrogant…
We should treat everybody as equals…
China is now a supporter of a terrorist breading
nation like pakistan…
ITS TIME FOR INDIA TO RETALIATE…
China should be thankful to other countries for their
less protectionary-policies even when it is mainly protectionary and less
liberalized than other democracies... It can not grow on its own by
depreciation... It still needs to liberalize imports, capital-account too, so
that it helps other countries to reduce their trade-deficit with the country...
Peace and Prosperity in the trading-partners' economy is important for its
long-run objectives... China itself is its biggest problem for its own
stability... External situation is out of China's control...
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