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Which country(ies) would help China [Copy link] 中文

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Post time 2011-4-26 08:23:55 |Display all floors
Which country(ies) would help China if Chinese property boom collapsed?

[ Last edited by 468259058 at 2011-4-26 09:24 AM ]

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Post time 2011-4-26 08:27:26 |Display all floors
Who helped the developed countries after the financial crisis of 2007 caused by the collpase of propety boom?

Their own governments and Chinese government.

Chinese government printed a huge amount of money including subsidizing the car industry. Those multi-national companies reaped huge more profits than the past. And this huge profits compensated the loss in their own country.
Chinese government also bought huge of loans created by property boom in U.S.A and Europeans countries, such as Spain.
In all, Chinese government contributed a lot to recover the economy of developed countries as well as its own.

[ Last edited by 468259058 at 2011-4-26 09:25 AM ]

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Post time 2011-4-26 08:28:45 |Display all floors

Why did the hyperInflation take place in China?

The financial crisis of 2007 in the developed country dragged Chinese economic growth.
After that, Chinese government printed a huge amount of money to simulate the economic growth.

[ Last edited by 468259058 at 2011-4-26 09:28 AM ]

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Post time 2011-4-26 08:31:33 |Display all floors

What's the risks of inflation?

Huge amount of money supply created the huge bubble of property. China would suffer its own financial crisis after Chinese property boom collapsed.

Inflation will drive workers' wages up; will drive food price up; will drive bank interests up. Chinese exporters will sell products to Americans, Europeans, and other buys at a relative high price. Some industries would move out of China to low cost countries.

Inflation would easily create speculation in a man ruling China. Speculation would create unstable food prices and other unstable price of daily necessity. Many Chinese with few of social welfare would be very nervous and vulnerable in this inflation. And then this society would be unstable.

++++++++++++++
The opinions in this answer are from an anticle in economist website.

[ Last edited by 468259058 at 2011-4-26 09:31 AM ]

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Post time 2011-4-26 08:35:42 |Display all floors
Why did Chinese government create its own risks for helping some of the developed countries surviving through the financial crisis?

Who knows?

Did any other developing countries, such as Brazil, Russia, South Africa, India, print a large amount of money after the financial crisis in the developed countries?

[ Last edited by 468259058 at 2011-4-26 09:33 AM ]

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Post time 2011-4-26 08:40:37 |Display all floors
What would the best solution for the present hyperinlfation?

Soft landing?

Or in a market economy, eventually, the collapse of the property boom would happen in China?
All of Chinese banks are owned by governments. Would Chinese government use the taxpayers' money to compensated the bad bank loans again as what it did in the late 1990s.

That is to say,
The boom of property market, ordinary Chinese suffer;
The collapse of property market, ordinary Chinese suffer.

right?

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Post time 2011-4-26 08:43:28 |Display all floors

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