5 ms·

>There are also 60,000 Chinese people worth at least $200 million—another line of demarcation between being wealthy and being a photon cannon of currency. Jesu

>There are also 60,000 Chinese people worth at least $200 million—another line of demarcation between being wealthy and being a photon cannon of currency. Jesus christ, spend your minerals and gas.

cylinder 12y ago
That's $12 trillion dollars. 71% of USA GDP. Although I imagine much of that is tied up in speculative real estate which is on its way down in value.
- lawnchair_larry 12y ago
  As long as China continues producing more rich people, it isn't going down in value any time soon. It has no mortgage, and is completely detached from the American market.
  - seanmcdirmid 12y ago
    Until China introduces a property tax to get all that unused property [1] in use working for the economy. And a lot of people have borrowed from banks, family, and loan sharks to speculate in real estate; the landing won't be as soft as the wumao want you to believe. [1] 3-40% of all apartments in Beijing aren't even renovated, and that is supposed to be a first tier hot market.
    - unimportant 12y ago
      Too much of the economy relies on the already shaky real estatemarket for this to happen in the near future imo. A sales tax on third properties and beyond was introduced in Shanghai to curb speculation and couples simply divorced or used straw men to avoid having to pay it.
      - seanmcdirmid 12y ago
        The straight up property tax (per property, no exceptions) will be added at some point. Municipalities can't make so much money by selling land anymore, and the central government doesn't kick back enough tax revenue. Not only that, but they have committed to eventually providing social services to migrants, like you know, schooling for their kids. That has to be paid for someway. But they will definitely hold off for now, a property tax would cause huge devaluations in property prices inflated by the lack of one. But if we get a crash anyways, it will be easy just to add it at the bottom. The question is what is next, with transaction reaching a very low bottom to keep prices from falling, we seem to be in for a long bout of stagnation which will drag down the larger economy even more than if a crash would just happen and we could be over with it.
        unimportant 12y ago
        Local government and companies have borrowed way too much based on real estate value that a crash would be allowed to happen based on what I have read, as it would have much broader implications than in the US. Rents in Shanghai have remained mostly stagnant from what I've seen for the last 2 years, so it's good for tenants.
        seanmcdirmid 12y ago
        Rents at the high end are completely stagnant, which is why those new apartments aren't being renovated. Not having a property tax leads to hoarding and not putting property to productive use, which screws everyone but the princelings.
        desdiv 12y ago
        They've already announced plans to roll out the tax "as early as this year": http://www.theglobeandmail.com/report-on-business/international-business/china-moving-quickly-to-roll-out-property-taxes-nationwide/article20294761/ http://www.theglobeandmail.com/report-on-business/internatio...
    - lawnchair_larry 12y ago
      We might mean different things. I meant Chinese money in US real estate.
      - seanmcdirmid 12y ago
        Thankfully the US has a property tax, so they have to put the property to use, which is good for the economy, at least.
  - rasz_pl 12y ago
    wat? china is all borrowed money after 2008 http://www.cnbc.com/id/102066916 http://www.cnbc.com/id/102066916
- dustcoin 12y ago
  The $200M figure is a typo. The article's source lists 64500 people with >= 100M RMB ($16M) in 2013. http://up.hurun.net/Humaz/201312/20131218145315550.pdf http://up.hurun.net/Humaz/201312/20131218145315550.pdf [Page 9]

>There are also 60,000 Chinese people worth at least $200 million—another line of demarcation between being wealthy and being a photon cannon of currency. Jesus christ, spend your minerals and gas.

cylinder 12y ago

That's $12 trillion dollars. 71% of USA GDP. Although I imagine much of that is tied up in speculative real estate which is on its way down in value.

lawnchair_larry 12y ago
As long as China continues producing more rich people, it isn't going down in value any time soon. It has no mortgage, and is completely detached from the American market.
- seanmcdirmid 12y ago
  Until China introduces a property tax to get all that unused property [1] in use working for the economy. And a lot of people have borrowed from banks, family, and loan sharks to speculate in real estate; the landing won't be as soft as the wumao want you to believe. [1] 3-40% of all apartments in Beijing aren't even renovated, and that is supposed to be a first tier hot market.
  - unimportant 12y ago
    Too much of the economy relies on the already shaky real estatemarket for this to happen in the near future imo. A sales tax on third properties and beyond was introduced in Shanghai to curb speculation and couples simply divorced or used straw men to avoid having to pay it.
    - seanmcdirmid 12y ago
      The straight up property tax (per property, no exceptions) will be added at some point. Municipalities can't make so much money by selling land anymore, and the central government doesn't kick back enough tax revenue. Not only that, but they have committed to eventually providing social services to migrants, like you know, schooling for their kids. That has to be paid for someway. But they will definitely hold off for now, a property tax would cause huge devaluations in property prices inflated by the lack of one. But if we get a crash anyways, it will be easy just to add it at the bottom. The question is what is next, with transaction reaching a very low bottom to keep prices from falling, we seem to be in for a long bout of stagnation which will drag down the larger economy even more than if a crash would just happen and we could be over with it.
      - unimportant 12y ago
        Local government and companies have borrowed way too much based on real estate value that a crash would be allowed to happen based on what I have read, as it would have much broader implications than in the US. Rents in Shanghai have remained mostly stagnant from what I've seen for the last 2 years, so it's good for tenants.
        seanmcdirmid 12y ago
        Rents at the high end are completely stagnant, which is why those new apartments aren't being renovated. Not having a property tax leads to hoarding and not putting property to productive use, which screws everyone but the princelings.
      - desdiv 12y ago
        They've already announced plans to roll out the tax "as early as this year": http://www.theglobeandmail.com/report-on-business/international-business/china-moving-quickly-to-roll-out-property-taxes-nationwide/article20294761/ http://www.theglobeandmail.com/report-on-business/internatio...
  - lawnchair_larry 12y ago
    We might mean different things. I meant Chinese money in US real estate.
    - seanmcdirmid 12y ago
      Thankfully the US has a property tax, so they have to put the property to use, which is good for the economy, at least.
- rasz_pl 12y ago
  wat? china is all borrowed money after 2008 http://www.cnbc.com/id/102066916 http://www.cnbc.com/id/102066916
dustcoin 12y ago
The $200M figure is a typo. The article's source lists 64500 people with >= 100M RMB ($16M) in 2013. http://up.hurun.net/Humaz/201312/20131218145315550.pdf http://up.hurun.net/Humaz/201312/20131218145315550.pdf [Page 9]