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One explanation of the inflation of the public and private markets in the US is that the Chinese are in the middle of a massive debt bubble, anyone with cash th
by jakecrouch 8y ago
One explanation of the inflation of the public and private markets in the US is that the Chinese are in the middle of a massive debt bubble, anyone with cash there has nothing good to do with it, so they've been willing to invest in the US at almost any price.
- adventured 8y agoThat isn't a good explanation. China has extremely tight capital export controls in place, you can't easily get your money out of China to invest it into the US. Beyond the annual $50,000 currency conversion limit they've put into place domestically, they've also made it an obnoxious and suspicious process to go through even if you attempt to convert the allowed $50k. The US is far wealthier than China is anyway, and that's with 1/4 as many people. There is no need for Chinese capital to spur asset inflation in the US, the US has more than enough capital to do that on its own.