Economy 52,844 Posted August 26, 2015 Share Posted August 26, 2015 http://www.cnbc.com/2015/08/24/the-fed-hike-could-lower-interest-rates.html Though low oil prices have a positive deflationairy influence by directly lowering costs by business... Much of low inflationairy pressures have been a result of slow demand growth, low wage pressures, and weak demand for credit. China has entered deflation in the retail segment of its economy and most of the world barely eeks out 1% inflation (below the 2% healthy rate) Bond yields are falling in the US despite expectations of a rate hike due to reduced inflation outlooks. Global interest rates may have to stay low longer to insuce economic activity and in turn inflation. Link to post Share on other sites More sharing options...
Radio Ga Ga 5,671 Posted August 26, 2015 Share Posted August 26, 2015 Yeah I live there, the country is gonna explode in like 5 years according to my dad Link to post Share on other sites More sharing options...
Economy 52,844 Posted August 26, 2015 Author Share Posted August 26, 2015 Yeah I live there, the country is gonna explode in like 5 years according to my dadChina? Link to post Share on other sites More sharing options...
Radio Ga Ga 5,671 Posted August 26, 2015 Share Posted August 26, 2015 China?Yeah, I'm Canadian, but I live in China Link to post Share on other sites More sharing options...
Economy 52,844 Posted August 26, 2015 Author Share Posted August 26, 2015 Yeah, I'm Canadian, but I live in China China is probably the only Country in the world with a bigger housing bubble than Canada. Gotta give China credit though. The transition from export driven growth to a more consumption based economy that comes when an economy matures is not an easy transition Link to post Share on other sites More sharing options...
Radio Ga Ga 5,671 Posted August 27, 2015 Share Posted August 27, 2015 China is probably the only Country in the world with a bigger housing bubble than Canada. Gotta give China credit though. The transition from export driven growth to a more consumption based economy that comes when an economy matures is not an easy transition My parents lived in China almost their whole lives, and they say the 80's and 90's saw some pretty big political changes and a lot of hope for becoming a country like the US, but corruption and conservatism kicked in the late 90's, and even though China was still developing really quickly through the 00's, it was decelerating and the government was becoming worse and worse of an oligarchy. It's no longer an issue of economic development, because China already has made a lot of progress. It has become the problem of politics now. Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted August 27, 2015 Share Posted August 27, 2015 Here is one angle that nobody has noticed yet...I don't think...Oil revenue drops world wide ... by more than %50 Saudi's suddenly need to borrow because of cash flow problems.China's stock market gets hammered by a huge sell off.Uhm, Saudi invests heavily in global stock markets with oil profits, including China. So ,,,, doing a wittle math ....Saudi's need cash flow, China stock market hit with huge sell off..... One must Ponder..8-) like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,844 Posted August 27, 2015 Author Share Posted August 27, 2015 Here is one angle that nobody has noticed yet...I don't think...Oil revenue drops world wide ... by more than %50 Saudi's suddenly need to borrow because of cash flow problems.China's stock market gets hammered by a huge sell off.Uhm, Saudi invests heavily in global stock markets with oil profits, including China. So ,,,, doing a wittle math ....Saudi's need cash flow, China stock market hit with huge sell off..... One must Ponder..8-)i thought about this too... but then i did the math and realized it a small impact at best the money both Saudi Arabia and Russia have sold from their wealth funds in the past year total not much more than $120 Billion... The global equity market is worth many trillions... so its too small a drop in the bucket for this to be the reason why Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted August 28, 2015 Share Posted August 28, 2015 i thought about this too... but then i did the math and realized it a small impact at best the money both Saudi Arabia and Russia have sold from their wealth funds in the past year total not much more than $120 Billion... The global equity market is worth many trillions... so its too small a drop in the bucket for this to be the reason whythat's true, but it may have been a trigger, large sell offs are usually panic reactions like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,844 Posted August 28, 2015 Author Share Posted August 28, 2015 that's true, but it may have been a trigger, large sell offs are usually panic reactionsyeah but since its hardly been talked about and the withdrawl from the funds is done gradually i doubt ppl are panic selling because if them The prospect of risig rates from the US, slowing China, And stretched valuations may have more to do with it Link to post Share on other sites More sharing options...
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