Non productive jobs are all governments today know. So digging holes with plastic teaspoons and creating endless Covid QR codes all over the city it is.
Is that Forex reserves held by China's central bank? Or a deliberate policy to strengthen the Yuan? and and This bit is funny though, so fkn Chinese: https://sg.news.yahoo.com/china-forex-reserves-grew-marginally-102031098.html
I would image it's the central banks reserves. Don't that the chart literally, I'm sure it's a funny glitch.
Fast forwarded the whole thing, but is was pretty objective. Essentially the same thing which I thought. The huge rural population is dead weight.
Great analysis, thanks for posting @sgbuyer one of the best videos I've seen for a while, critical for China and the whole world. So if things do get nasty, which way will the 900 000 000 disenfranchised Chinese swing (acknowledging that 600 000 000 of them are kids and elderly)? Deeper into socialism? Or will they be willing to stand up against Xi's bullets, tanks and fear? As Scott Rozelle said, they've got a human capital problem and I think Xi is either ignoring it, or crushing on it. He's probably the worst man in the world at the moment.
I had to stop watching that video due to the appalling audio. Why can't people buy decent mics... And people need to stop using those virtual backgrounds, it does a bad job at masking and makes people look like idiots.
Did you get a chance to work out what it was about before cutting it? I can give a brief summary coz I endured the bad haircut and echoed audio.
Your classic two-speed economy. China has a regulatory policy that actively restricts the number of people that can live in cities. It's based upon whatever region you're born in. If you're born in the major cities then you're entitled to own property, get health care and education for your children in those cities. If you're born in a rural area then you can only own property, access health care and get your kids educated in that rural area. On top of that is a pension system paid by government which is based upon whether you live in a rural or city region. If you live in a rural area the amount you're entitled to is a fraction of what is available to city dwellers. Compounding this is that local government services in rural areas are virtually non-existent at worse, and underperforming the city market by quite a substantial margin when they are provided eg poorer medical care, poorer education, lack of infrastructure etc. Local governments are reluctant to provide services such as quality schooling because the kids move away from the area if they get good education. Rural folk are not restricted from working in city regions, they just can't own anything there or have their kids schooled there so the kids remain at home. Naturally property prices in rural areas are extremely low because it's shitsville, so any property that the locals do own is not worth very much as a result, their level of wealth compared to city dwellers is quite poor. Rozelle is hoping that the Chinese leaders open their eyes and start playing properly in the sandpit instead of cracking the shits and tossing all the buckets and spades out for both the good of their people and for the rest of the world. He argues that instead of focussing on their expansionary "Belt & Road Policy", which is all about trying to expand China's political power, that they should address the domestic inequality issues and concentrate on investing at home.
And jobs are leaving China meaning the rural class are going to find it increasingly difficult to find work.
Sounds like China is doing the great leap forwards backwards all over again. City people get all the wealth while the country people keep getting poorer until they starve to death and the CCP pretend everything is good. No wonder the CCP hate free media. Give it another 5 years and China will start to crumble from within. Soon the billion plus poor Chinese people will realise the CCP have screwed them and revolt.
There will be no revolt but to achieve that, the state needs to increase their power over the economy, money (digital) and the Internet. So more centralisation of power as opposed to federation. But this is a zero sum game, increased state role means reduced innovation and entrepreneurship, and in time, this will lead to economic stagnation. With economic stagnation, the state will have to create new distractions so we can expect more drama and instability in borders and regional countries.
In terms of investment opportunity. I see the US market now as the best bet post-pandemic. The plandemic is the best thing that could happen to the US. It has the same effect as war without damaging the infrastructure and leaves no traces, after 6 months, all is forgotten. After war, there comes rebuilding.
Come on man, we can print our way out of this mess! We just need to do our helicopter rain dance a few times and we'll be back to 'New Normal' in no time
