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Who buys it? Also in most of these ghost towns actual people are living there now.
Here is an article about the ghost cities
"In the end, only government officials and migrant construction workers effectively settled in," Olivier said, "leaving the vast majority of the city completely empty."
Though the city is only about one-third full, 80% to 90% of unoccupied apartments have owners, who hold on to them as long-term investments, Forbes reported in 2016.
Some of the ghost cities have people moving in due to government subsidies and tax breaks. This implies the actual utility value of these building is lower then what they sell for. However when counting for GDP this count for full value.
The same applies when the riches buy properties for "investment" purpose in other areas. Just bought them up, no one live in it, waste of resources.
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Most of those airports are not useless, industries are build around them.
I will give you that.
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ALso lol at China not having free markets, some places are like libertarian dreams.
libertarian dreams only if you have connection, aka guanxi. See how Jack Ma steal Alipay from yahoo. If you don't have guanxi there are tons of regulation to follow.
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Because that money has to come from somewhere. Also if you have ever been to China you see they have built up massive infrastructure and are basically the factory of the world.
China earned tons of money with her massive export. I already said that.
Yes she is the factory of the world.
You are implying in your post that because China have a lot of money their economy will grow. What the Chinese government do is the exact opposite of helping the economy grow: Put the hard earned money in US.
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And they buy treasury bonds because they want to keep their currency cheap for exports (create more supply of yuan), this is basic economics dude.
basic economics: You have to keep price low only when your products are not competitive. Not exactly what I want when I invest. I would change my view if they can produce products with huge margin. Where is the luxury brand in China?
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If their economy is such a giant fraud, why on earth would they do that? It would only let their currency collapse faster if that was the case.
I am not saying their economy is fraud. However I am not going to invest in a country where the government can restrict capital outflow, and their citizens are trying their best to outwit the government and spend their hard earned money outside of said country.
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Yeah but it has zero to do with whether or not GDP is inflated or deflated. So not sure why you bring that up.
For an economy to prosper, the standard of living of the people must be improving, not deteriorating. Especially when in the modern age in which technology is the key to economic growth. All the countries are trying to attract talents, and said talents will of cause pick a country where they can have high standard of living. Do you think a country with poor air quality, unsafe food and limited freedom can attract talents? You know, a country in which the government dictate how many Children you can have.
Or you can build more factories, but this will not end up well when now some of the place become so polluted that it is already inhabitable.
Also GDP growth != corporate earning growth != Propsperity
Sorry in my last post I sound like my point is fake GDP figures, that is not my point.
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Actually they are going back to China:
From the linked article.
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National Institute of Education Sciences researcher Chu Chaohui said returning students had more resources and better networks in China to find a job, while Chinese students in the U.S. were dependent on 20,000 H1-B visas for tens of thousands of students, not only from China, and the majority of them working in computer sciences.
I am referring to the guys who are ultra smart, the main contributor of tech progress, not rich kids who were sent to US by rich parents.
Not enough work visa for everyone. Tens of thousands of students vs 20,000 H1-B visa.
You have no choice but to go back is different from you actually want to go back.
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The Chinese stock market is not that cheap. Shanghai trades at 17x PE despite having a lot of low quality stocks, Shenzhen trades at 37x PE. Despite having pretty low quality stocks in them.
HK exchange is the one that is cheap at 11x PE.
I think now it is 15x p/e? Again not cheap in my standard.
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The whole fraud argument has been spun for like 10-15 years now. Lot's of private organizations have collected data in China, so if it was a fraud there would be convincing evidence by now. Yet one of the largest private organizations who collect data themselves have decided to bet big on China. That should tell you something.
Wall street firms rarely have the same opinion. I am sure there are firms who have shorted China.
Death threats, so I suppose I will just stay out of my way.
http://www.businessinsider.com/r-as-...-mounts-2017-8
I am neither short or long
Last edited by mtgalex; 09-24-2017 at 01:27 AM.