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穆
Glorious Member
This is hardly the end I think, it does however signal a shift in Chinese market strategies. Their growth is not sustainable without more domestic consumption.
They don't have a floating currency and they peg their currency to the USD, all fiat currency has no value except in relation to the stability of the government. As long as the Chinese system is stable these sort of market corrections are just blips, they have very little effect on anything except stockholders. The government is the bank, and it will not fail thru economic mechanisms. Currency is no more than say share in your national organization, its nominal value is 1 cent like shares in any business, valuation is entirely determined by stability and the potential for future profits.
I think commodities like oil are really undervalued at the moment, political stability can easily shift oil prices up, any sort of political disturbance in Saudi Arabia can do that.
I think the Chinese's goal is to prop up the existing global finanical system while acquiring power over natural resources around the world, and it does this with a currency entirely controlled by the government and pegged to the dollar which people accept because of Chinese political/economic strength.
I think Chinese trained economists simply don't see money the same way as Western Economists, althrough they've adopted some neo-liberal concepts in recent history, they're still basically Marxist in origin and Keynesian in practice.
I think trying to analyze why/what the chinese are doing from a western economic perspective is doomed to miss out on the control they're asserting over various spheres of influence even if somehow they're "losing money".
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