Posted on 06/18/2011 3:51:49 PM PDT by SanFranDan
Possibly -- and China is hardly communist any more, it's a ruling oligarchy, but if you got the money you can have servants etc. and have a completely cocooned life.
Georgia’s Hank Johnson (D- of course) is quivering in fear for the Chinese as this mass exodus will surely cause China to tip over and capsize.
Bump for after work viewing.
If only. It would raise the common sense level in both countries.
Yes, and they also need something to invest money in. Chinese save their personal salaries at rates that would shock Americans. And many of them are rather naive about international finance. Having lived in a poor country all their lives, and dealing primarily in cash, they don’t have much of an idea about boom & bust cycles.
It’s a combination of centralized planning and a shortage of investment projects for all the money that the Chinese people save. They save a much higher percentage of their pay than Americans would ever consider. They have to speculate in order to invest it.
This cash hoarding habit is also why they own so many US financial instruments—we’ve been a good investment for them for years, in a place where investment opportunities are small compared to the amount of money hoarded and looking for investments.
And of course, if the investors aren’t there to supervise the building process, it’s not important in the short term, if it’s only a speculative build and there are no complaints because there are no tenants.
The Chinese population isn’t very savvy about boom & bust cycles, having been re-educated for years, and having been accustomed to dealing in cash for much longer.
You have to remember that much of their history was re-written you know. Witnesses were murdered. They “started over” in some very real sense in the 40s-60s.
[This is something we are having to contend with, in a way too. Schools in the West have a far different purpose than they used to have.]
Bingo!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.