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I think 4) Since this is local government debt, local governments start selling off their principal assets, land. And as land prices hit rock bottom, there begi
by riazrizvi 8y ago
I think 4) Since this is local government debt, local governments start selling off their principal assets, land. And as land prices hit rock bottom, there begins a massive transfer of ownership of local public owned land to private individuals and companies. Initially there may be a flight of Chinese capital out of the country as land prices begin falling off a cliff. Then once they stabilize, there will be a big whooshing sound as money is repatriated and people start snapping up choice holdings?
- nradov 8y agoChinese capital controls including recent crack downs on money laundering make rapid capital flight or repatriation impossible on a large scale.
- lifeisstillgood 8y agoI think a large amount of bitcoin prices are attributed to western banks explaining to wealthy chinese how to transfer money out of the country on a large scale.
- adanto6840 8y agoSincerely asking: Are you serious? Do you have sources, good or otherwise (even rumors or talk of this topic)? What exactly is it that you think is happening, if I may ask? Does a Chinese citizen, perhaps vacationing in the US, walk into BoA or WF and ask a wealth management advisor how to move money to their newly opened account there?
- lifeisstillgood 8y agoyes.
- Retric 8y agoBitcoins don’t work for that. If you want to buy bitcoins with Currency X you need to find somone that wants to sell bitcoins for Currency X. Similarly if you want to sell bitcoins for Currency Y you need somone to buy them in Currency Y. Net result you can’t get large net cash flows unless people can exchange currency X for Currency Y. PS: Bitcoin mining is another story, but it’s little different than building anything in China and selling abroad.