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The RMB and Yuan seem like good longterm investments IMO despite the current volatility in Chinese markets. The one thing however that is concerning is China's
by abysmallyideal 10y ago
The RMB and Yuan seem like good longterm investments IMO despite the current volatility in Chinese markets. The one thing however that is concerning is China's abilities to counter US attempts to devalue and destabilize their currency, much like what occurred to the Euro in the collapse of '08. During the time preceding, the Euro was a great contender, not so much anymore. Also the collapse of the Yen spurned by American economic manipulation.
One noticeable difference to add is Japan and the EU are US military dependents and therefore by logic also US economic dependents. The Chinese are not. Not sure how that would value in calculations, but it is a significant factor.
- jessaustin 10y agoWith a more developed domestic market, China wouldn't be an "economic dependent" of USA. As it stands now, however? I think it really is.
- abysmallyideal 10y agoNah, that is so softball. The US will hit them with something that has far more leverage. China has a severe weakness and that is the capacity to feed their population and the hundreds of millions of young single Chinese men who will never find a spouse. Food, water, and women willing to take on Chinese spouses.
- jessaustin 10y agoI would almost buy the food argument, but there aren't all that many American women lining up to marry Chinese men. I'm sure such people exist, but not in numbers sufficient to alleviate this particular issue. American men marry non-Americans, but for the most part American women do not.
- rrggrr 10y ago> The RMB and Yuan seem like good longterm investments IMO despite the current volatility in Chinese markets. Debt to GDP is 282% and on a trajectory to hit 500% if action is not soon taken. There is no long term upside if debt is not reduced. > China's abilities to counter US attempts to devalue and destabilize their currency China's exchange rate is set by China alone. If there is destabilization taking place it is capital fleeing China in anticipation of a debt crash and asset bubble implosion. > the collapse of the Yen spurned by American economic manipulation. The Yen is suffering from a demographic crisis where younger workers are far outnumbered by an aging population. This is problem in a number of countries. Hopefully you're being paid in USD to post this propaganda.
- abysmallyideal 10y agoSure, you can cherry pick your data all you want. If we look at their infrastructure and military costs, they are within the ballpark to recover gracefully. As for currency manipulation, did you conveniently forget that the US bailed out the banks to the tune of trillions with no jail times except for one lower end employee? Their own economic manipulations and fraud created a bubble that collapsed the Euro, strengthening the dollar. Long term perspective is still quite good, and although you want to sputter your freedom eagle bullshit at anything you think is non US, it remains an attractive invest and forget investment option.