China won't become super prosperous... name me one communist country that has had sustained prosperity.
Yep i understood it ....just. I doubt our export market will be affected a lot .Most things that are bought cant be sourced anywhere else that is financially viable to the buyers thats why theyre buying it from us in the first place
Your forgetting one thing . That most smart chinese already have their money in OS accounts .Nice thought but not likely
Yeh but if they're buying our exports to manufacture goods, and there is no market for manufactured goods, then they don't need to buy it. Or they use their stockpiles that they've built. I tend to think that as Big AD says, the Chinese government will fiddle with things in such a way, that the domestic market will be either forced to pick up the slack, or they'll print money in order to increase demand for goods at home.
This is something I agree with and which I think could allow a correction of the RE market. I don't think it'll be a huge correction based on this single event, but I can't forsee a way housing prices can sustain themselves at these levels.
Well we obviously have different opinions on that one . I'l stick with my theory because i have dealt with quite a few chinese companies & most times the money went into an offshore account ....not chinese. How would they evade taxes? Are you saying chinese dont pay tax ?
Hence why this forum is valuable, like everything else in life whether it be economics, science, education, there are a number of theories. Thank you to all who contribute
Chinese companies don't buy that much property though (non-commercial), wealthy Chinese businessmen do. The most prevalent Chinese businessmen in Australia are the ones selling cosmetics, tutors and food. They all take cash in hand and pay cash in hand, the majority evade taxes by falsifying their income reporting. This is one case where stereotypes are true. There are real tales of people taking cash out of the country on hand carry luggage and getting busted. It's pretty funny. ps. I don't think you're wrong renovator, just offering my differing point of view from my experiences
If the Chinese market crashed most Chinese wouldn't notice the difference. Australia however is a different story, with approximately 70% of it's superannuation pool invested in the share market a crash in the Australian market would be cataclysmic.
I heard of a Chinese family who literally bought a suitcase with 750k cash to buy a house Slapped it on the table (CASH IS BACK BABY)
There are already restrictions; its not a large amount yet the Chinese have ways around this. Source: http://www.businessweek.com/news/20...mebuying-spree-as-local-markets-tighten.html]
This is why they have offshore dollar accounts . The companies i dealt with qoute & want to be paid in dollars
Chinese rise is a bubble based on lies and temporary advantage. When the Shit hit the fan, no country in the world will go up everybody is going DOWN! China is no more special than everybody elses. Being in GuangZhou (the capital of factories and manufacturing in China), China's poor and unfortunate is off-the-chart! China is still a central command and communist country, the so called RICH China is literally RICH CHINA. The country is rich, but the people are poor. Only probably the top 1% of population are rich. When the SHTF, China got 1.5 billion problems taking it to the street with desperately empty stomachs. That country is going down...!
So it's China - for reasons previously discussed, and Japan because they are so deep into debt their future is ransomed. It's got to be obvious to our Treasurer that the future of our economy is in peril. What can we do to manage it?
