Reader Gord Tulk points to the SSE Composite Index;
The grossly under-reported story of the year is that the Shanghai Composite is off more than 50% from the high it hit in Nov/07 … When the US coughs, China gets pneumonia.
Reader Gord Tulk points to the SSE Composite Index;
The grossly under-reported story of the year is that the Shanghai Composite is off more than 50% from the high it hit in Nov/07 … When the US coughs, China gets pneumonia.
Looks like we human rights-respecting Canucks are a lot better off than the evil SinoCommies, then.
Makes one think that the artificial, unethical, immoral (achieved via terrible human rights abuses) economic boom the SinoCommies wrought may be quite vulnerable to outside changes.
Looks like the SinoCommie economy is so heavily export-dependent that just a slight drop in foreign purchasing of Chinese-made products has a significant effect on the economic health of China.
So… I’d say that the free world actually has a lot of power over the SinoCommies, as far as economic matters are concerned. All we have to do is threaten an economic embargo, ie. cheap Sino exports will no longer be legal for import into the free world, doing business in China would be banned, etc… Of course that’d terrify the Commies, who are badly addicted to the almighty buck.
If our political leaders in the free world had balls, they’d tell the SinoCommies to respect the human rights of the People or else find themselves banned from doing business with the free world, meaning… where the hell are they going to get money to continue amassing the biggest, most deadly military monster ever, which threatens the whole world?
Hey, y’know, China’s not the only country with low labor costs! Why don’t we start shifting our manufacturing to, say, India? The Indian government is, as far as I know, part of the free world, respects human rights, etc., and has lots of people who need jobs, so why not? Already, I recently had the option of buying a pasta colander, either one made in China or one made in India. The Indian one was only 1 cent more, but it was the human rights issue that made me buy the Indian one.
Are you listening, politicians and business leaders? It’s time to move our business to India and other deserving free world, democratic, developing nations!
After the Communists are gone from China, then we can do business there again, with a human-rights-respecting China that doesn’t plan to take over the world.
uhm. that’s not the graph I’m seeing on the official site….
The Chinese stock market was way overvalued and needed to come down. The Chinese authorities new this and have taken steps including raising interest rates and raising the banks reserve requirements. This has the effect of withdrawing liquidity from the financial system and causing their stock market to correct. The Chinese economy at this point is still growing strong but inflation has become a problem and they want to try to contain it.
“All we have to do is threaten an economic embargo”
Indeed Canadian Sentinel, I mean it creates more greenhouse gas to ship cheap goods here from China than to make them domestically. I think any carbon tax should be based on the distance goods have to come to Canada. Then factor in pollution levels at source.
🙂
For the time being, China has an interesting problem: it’s economic growth is dependent upon our ability to buy their exports. Our ability to buy their exports depends upon the cost of oil. The cost of oil is dependent upon the Chinese consumption of oil. The Chinese consumption of oil depends upon their economic growth.
That appears to me to be a negative feedback loop. No wonder big money is running to buy crop futures.
We are very reliant on the US economy and it makes me wonder how people can say we will not be affected, I would think it has to come, to what degree is the question.
When did the US economy lose it’s confidence and start the downward trend? About the same time as the house and congress were controlled by the democrats. What was the cause of the decline? Home mortgage policies introduced by the Clinton administration. And so it goes.
I’m flattered Kate.
People talk about the US having a real estate pricing bubble (the economist is constantly going on about it), but china has a far greater worry – a labour pricing bubble.
The yuan has been kept undervalued for years (decades?) now and as a result china’s citizens have been selling their sweat for far below market rates. The situation has gotten steadily worse to the point that the yuan were it to be allowed to float would rise by several 100 percent, crushing the economy and doing serious harm to other economies – including ours.
China has to begin the long march to a floating currency – perhaps it has begun already and this swoon in its market is symptomatic of it.
So much for the “decoupling” theory.
Yes, it is the same graph as the official site.
The story here;
Shanghai is off 50% since last years high.
Dow is off only 12%
But the media loves socialism/communism and adjusts their coverage accordingly.
Oh, and Canada’s TSX ? It is ‘UP’ nearly 4% during the same period. That is why we see sexgate headlines – day after day.
This is starting to look like one of the biggest, foulest rip-offs in history.
1. Get all the rubes working for cheap wages in gawd-awful cities by creative use of taxes on the farm peasants. You wanna eat, you go work in the city.
2. Get them investing their savings in the stock “market”. Since this Chinese are the only ones allowed to invest, those savings stay in the country and jack up the capitalization of the regime’s buddies. (If you’re in business at all, you’re a buddy.)
3. Spend It All on the military, infrastructure (for the military) and etc.
4. When the wheels inevitably come off, the RUBES take the hit and there you are, Mr. Chicom government all set up with a nice shiny new modern army to crush the rebellion and maybe conquer some neighbors.
Remember kids, when they say “From each according to his abilities, to each according to his needs”, you have to be careful who gets to decide what your needs are. Humans can get by on a bowl of rice and 6 hours sleep a day for a reeeeely long time before they croak of malnutrition, so you could end up with that at the end of an 18 hour work day.
No days off for good behavior, they just club you to death if you don’t make quota.
This is starting to look like one of the biggest, foulest rip-offs in history.
1. Get all the rubes working for cheap wages in gawd-awful cities by creative use of taxes on the farm peasants. You wanna eat, you go work in the city.
2. Get them investing their savings in the stock “market”. Since this Chinese are the only ones allowed to invest, those savings stay in the country and jack up the capitalization of the regime’s buddies. (If you’re in business at all, you’re a buddy.)
3. Spend It All on the military, infrastructure (for the military) and etc.
4. When the wheels inevitably come off, the RUBES take the hit and there you are, Mr. Chicom government all set up with a nice shiny new modern army to crush the rebellion and maybe conquer some neighbors.
Remember kids, when they say “From each according to his abilities, to each according to his needs”, you have to be careful who gets to decide what your needs are. Humans can get by on a bowl of rice and 6 hours sleep a day for a reeeeely long time before they croak of malnutrition, so you could end up with that at the end of an 18 hour work day.
No days off for good behavior, they just club you to death if you don’t make quota.
This is starting to look like one of the biggest, foulest rip-offs in history.
1. Get all the rubes working for cheap wages in gawd-awful cities by creative use of taxes on the farm peasants. You wanna eat, you go work in the city.
2. Get them investing their savings in the stock “market”. Since this Chinese are the only ones allowed to invest, those savings stay in the country and jack up the capitalization of the regime’s buddies. (If you’re in business at all, you’re a buddy.)
3. Spend It All on the military, infrastructure (for the military) and etc.
4. When the wheels inevitably come off, the RUBES take the hit and there you are, Mr. Chicom government all set up with a nice shiny new modern army to crush the rebellion and maybe conquer some neighbors.
Remember kids, when they say “From each according to his abilities, to each according to his needs”, you have to be careful who gets to decide what your needs are. Humans can get by on a bowl of rice and 6 hours sleep a day for a reeeeely long time before they croak of malnutrition, so you could end up with that at the end of an 18 hour work day.
No days off for good behavior, they just club you to death if you don’t make quota.
Oopsie! Sorry Kate!
Imagine a Chinese market actually allowed to operate freely and not be artificially propped up (much different than say…Bombardier)! The Chinese economic miracle continues. Given that the eagle and dragon are joined at the hip, social and political reforms undoubtedly will follow. Good job China!
That’s the problem, Martin, I have to imagine it. They don’t actually -have- a free market. What they have is a company store. The creation of a free market and the removal of the hideous corruption in that country would see a lot more growth and a lot less misery I’m sure.