Capital flight

Re: Capital flight

Postby Kane » Mon Jun 02, 2014 9:54 pm

The Dharma Bum wrote:The point is more that they are afraid of capital flight, and are seeking ways to preserve their wealth. The result is the emergence of the shadow banking sector and stuff like bitcoin. They are desperate to preserve their wealth and will take great risks to do so. The reasons for this development can be analyzed.

China normally keeps the yuan undervalued in support of it's export sector but has yielded to international pressure and let it appreciate recently. There has been a gain of 2.5% against the dollar so you are correct in saying that. But overall the forces that create this pressure on the market are still fundamental to China's economic situation and the devaluation of our own currency must be taken into account as well.

http://fordhampoliticalreview.org/china ... imbalance/


Still doesn't make sense to me. China has a very high investment % which is frankly more troubling than capital flight. It's suggestive of a dependence on debt, especially government debt as the country continues to target growth rates in order to maintain social stability.

http://www.brookings.edu/blogs/up-front ... ies-dollar
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Re: Capital flight

Postby The Dharma Bum » Tue Jun 03, 2014 8:01 am

China has a very high investment % which is frankly more troubling than capital flight.
Part and parcel of dealing in the US dollar, it's a zero sum game for other counties and that's the point. You can't "grow your way out of it" by incessant growth. If you understand this, you should understand the situation foreign holders of US treasury securities are in and why they are incentivized to stop using USD.

It's suggestive of a dependence on debt, especially government debt as the country continues to target growth rates in order to maintain social stability.

Why do you think Chinese wealth is fleeing the dollar? China is calling for SDR already. They will be unable to maintain social stability by indulging the exorbitant privilege of the US. In essence they are loaning us money that is being paid back with dollars that are worth less they the ones they loaned.

Try looking at it from their perspective instead of ours and perhaps you will see the problem in something other than a self-serving light. China has been actually trying to work something out with us on the issue for years, but we aren't cooperative.
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Re: Capital flight

Postby Saz » Wed Jun 04, 2014 12:10 pm

The Dharma Bum wrote:
gla22 wrote:
The Dharma Bum wrote:
Dependency theory is the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former. It is a central contention of dependency theory that poor states are impoverished and rich ones enriched by the way poor states are integrated into the "world system."


Basics

The premises of dependency theory are that:

1. Poor nations provide natural resources, cheap labour, a destination for obsolete technology, and markets for developed nations, without which the latter could not have the standard of living they enjoy.

2. Wealthy nations actively perpetuate a state of dependence by various means. This influence may be multifaceted, involving economics, media control, politics, banking and finance, education, culture, and sport


http://en.wikipedia.org/wiki/Dependency_theory

I think this is among the best way ways to analyze the global system


This is why free trade is such a scam for developing countries. Industries with high paying nice jobs, (tech, finance, ect) can't develop because new businesses in developing countries can never compete with existing businesses in developed countries so the developing countries end up being giant open pit coal mines.


Exactly, probably the solution lies in import substitution industrialization rather than the traditional trade-and-export orientation. Note this system was developed by economist Frederich List and is related to his National System of economic theory, which influenced both the American System and National Socialism.

The thrust of the argument is to develop industrial production in developing nations as a way of fostering national independence. Since this economic reasoning enabled Germany to overcome the devastating economic effects of the Treaty of Versailles and the development of the economic engine that built the unprecedented American Empire there probably some basis for his ideas.

In this context they represent a positive use of nationalism. The idea is to protect the nations' production from foreign competition and therefore control.


I truly cannot believe I am reading this. Idiots of the highest order you both are. We have had a decades long real life experiment and you only have to look at east asia vs india to see which is superior. Every single state that has reached a near first world level of development today has done so based on free trade and open markets. India tried ISI and look at f**k india today. You both are so f**k lost that it's truly dangerous.

The developing world is growing several times faster than the developed world. We live in a time of economic convergence, not exploitation.
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Re: Capital flight

Postby Kane » Wed Jun 04, 2014 12:27 pm

The Dharma Bum wrote:
China has a very high investment % which is frankly more troubling than capital flight.
Part and parcel of dealing in the US dollar, it's a zero sum game for other counties and that's the point. You can't "grow your way out of it" by incessant growth. If you understand this, you should understand the situation foreign holders of US treasury securities are in and why they are incentivized to stop using USD.


What? You're acting like the dollar itself is what ails the Chinese economy. It's not. This was a choice made by the ruling government to better secure growth while maintaining state owned industries. The inefficiencies within the Chinese economy are derived from that immutable fact, not their CHOICE to hold into dollars in the form of treasuries in order to fund an economy heavily dependent on government investment. If the USD/treasuries were really that shitty of an investment by are yields still f**k low? Why is demand still extraordinarily high EVEN with our fiscal situation? What does the US have that China doesn't? The answer is easy and surprising....a greater level of transparency.

The Dharma Bum wrote:
It's suggestive of a dependence on debt, especially government debt as the country continues to target growth rates in order to maintain social stability.

Why do you think Chinese wealth is fleeing the dollar? China is calling for SDR already. They will be unable to maintain social stability by indulging the exorbitant privilege of the US. In essence they are loaning us money that is being paid back with dollars that are worth less they the ones they loaned.

Try looking at it from their perspective instead of ours and perhaps you will see the problem in something other than a self-serving light. China has been actually trying to work something out with us on the issue for years, but we aren't cooperative.


Work with us how? Their situation in the long term is untenable as their political system inherently complicates economic performance.
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Re: Capital flight

Postby The Dharma Bum » Wed Jun 04, 2014 4:50 pm

What? You're acting like the dollar itself is what ails the Chinese economy. It's not.


it is
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Re: Capital flight

Postby Kane » Wed Jun 04, 2014 8:56 pm

The Dharma Bum wrote:
What? You're acting like the dollar itself is what ails the Chinese economy. It's not.


it is


By their own actions.
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Re: Capital flight

Postby Saz » Wed Apr 12, 2017 7:39 am

Saz wrote:
The Dharma Bum wrote:still into alts?


Yep. Haven't checked then in a while, not since gox went down. It's a long term thing


Guess who went in with 5k on ETH at $16 weighted average? This f**k guy. If it reaches bitcoin prices i'll make half a mil. Still have about $4k in bitcoin but I think I lost my other cryptos (and like 2k of bitcoin) cause i can't get into another exchange.
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Re: Capital flight

Postby Winchester » Wed Apr 12, 2017 5:40 pm

Saz wrote:
Saz wrote:
The Dharma Bum wrote:still into alts?


Yep. Haven't checked then in a while, not since gox went down. It's a long term thing


Guess who went in with 5k on ETH at $16 weighted average? This f**k guy. If it reaches bitcoin prices i'll make half a mil. Still have about $4k in bitcoin but I think I lost my other cryptos (and like 2k of bitcoin) cause i can't get into another exchange.


You sound like a gambler.

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Re: Capital flight

Postby exploited » Wed Apr 12, 2017 6:10 pm

Everyone who plays the stock market is.
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Re: Capital flight

Postby Saz » Thu Apr 13, 2017 2:33 am

Winchester wrote:
Saz wrote:
Saz wrote:
The Dharma Bum wrote:still into alts?


Yep. Haven't checked then in a while, not since gox went down. It's a long term thing


Guess who went in with 5k on ETH at $16 weighted average? This f**k guy. If it reaches bitcoin prices i'll make half a mil. Still have about $4k in bitcoin but I think I lost my other cryptos (and like 2k of bitcoin) cause i can't get into another exchange.


You sound like a gambler.


Actually that's one vice I don't really have. I'll throw 50 bucks on a game sometimes but otherwise don't gamble.

Like I said years ago it may not be BTC or ETH, but cryptos are the future. And actually I have made an incredible amount on these coins. Forgot what I paid for them years ago but I made profit back then and pulled out initial investment amount so this is all house money and I'm sitting on around 20k now which is nothing to sneeze at.
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