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China Declare War On Inflation

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http://uk.finance.yahoo.com/news/China-warpath-against-tele-2712038169.html?x=0

China on warpath against inflation

Emma Rowley, 17:28, Friday 31 December 2010
China's central bank chief has pledged to keep prices stable in 2011, raising the prospect of further interest rate rises to rein in inflation.
Zhou Xiaochuan, the governor of the People's Bank of China, used his New Year message to reaffirm the shift to a "prudent" monetary policy from the "moderately loose" stance taken as the country tried to drive growth.
His tone was markedly changed from a year ago, when he saw "defeating the international financial crisis" as the crucial task.

Meanwhile, Merv and the muppets contnue with their policy of vigilance (do nothing but watch intently) while London burns.

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China have contracted the capitalists' disease; crippling housing costs overwhelming the real economy.

Fiddling about with IRs won't make a lot of difference.

Afraid not, as I've given examples of you can rent 18sq metres for $1 USD a day, that is 10% of a person's take home pay.

Or even in Beijing divided apartments are popular which cost 1/16ths of a persons take home pay.

People in the countryside don't care since they own outright.

Migrant workers also don't care as they live in corporate dorms. They can save this money for 3 years and go home and buy outright.

Only the 300 million or so middle classes care as they are the ones who have hoovered up all the property. Unlike in the UK where NINJAs were in on the house bubble.

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China have contracted the capitalists' disease; crippling housing costs overwhelming the real economy.

Fiddling about with IRs won't make a lot of difference.

Not on their own, lots of ways of skinning a rat. They want a productive economy, and not a lopsided bubble economy fit for nothing, they will keep on doing whatever it takes I reckon.

DECEMBER 30, 2010, 12:48 A.M. ET

http://online.wsj.com/article/BT-CO-20101230-700225.html

China Property Developers To Be Penalized If Found Hoarding Land

SHANGHAI (Dow Jones)--Chinese companies that haven't started developing land more than a year after its acquisition will be penalized, while companies that have left land idle for more than two years risk having it confiscated, the Ministry of Land and Resources said in a statement Thursday, as part of the government's latest efforts to curb rising property prices.

The ministry said its local branches will step up their oversight of hoarding activity, and reiterated that companies found to have been hoarding land will be barred from making bids in land auctions.

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Afraid not, as I've given examples of you can rent 18sq metres for $1 USD a day, that is 10% of a person's take home pay.

Or even in Beijing divided apartments are popular which cost 1/16ths of a persons take home pay.

People in the countryside don't care since they own outright.

Migrant workers also don't care as they live in corporate dorms. They can save this money for 3 years and go home and buy outright.

Only the 300 million or so middle classes care as they are the ones who have hoovered up all the property. Unlike in the UK where NINJAs were in on the house bubble.

Not sure where you're getting your figures from, all the reports coming out of China seem to contradict this view:

The Chinese Academy of Social Sciences (CASS) said in its annual Economic Blue Paper that a typical Chinese property now costs 8.8 years of average earnings.

According to its figures, new homes in seven out of the 35 cities were more than 50pc over their fair value. Property prices in Fuzhou are 70pc too expensive, while those in Hangzhou are 66pc overpriced. New homes in Shanghai are 37pc overpriced and those in Beijing are almost 50pc overpriced

My link

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Not on their own, lots of ways of skinning a rat. They want a productive economy, and not a lopsided bubble economy fit for nothing, they will keep on doing whatever it takes I reckon.

DECEMBER 30, 2010, 12:48 A.M. ET

http://online.wsj.com/article/BT-CO-20101230-700225.html

China Property Developers To Be Penalized If Found Hoarding Land

SHANGHAI (Dow Jones)--Chinese companies that haven't started developing land more than a year after its acquisition will be penalized, while companies that have left land idle for more than two years risk having it confiscated, the Ministry of Land and Resources said in a statement Thursday, as part of the government's latest efforts to curb rising property prices.

The ministry said its local branches will step up their oversight of hoarding activity, and reiterated that companies found to have been hoarding land will be barred from making bids in land auctions.

Blimey, they don't mess about in China do they? Very interesting, thanks for the info.

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Not sure where you're getting your figures from, all the reports coming out of China seem to contradict this view:

Many of those reports don't report the realities on the ground.

In that China is a very unequal society, in China you have a middle class of 300 or so million and elites. These are the people doing all of the speculation of property who hoover up all the property and keep it empty. The old renting it out doesn't work in China very well because property in China is like a car, its second hand? It loses its value massively.

This leaves about 1.1bn rural people, factory workers, migrant workers etc. These people are not affected by property prices since they mostly have accomodation provided by their work places. They live in dorms, if not they live in partitioned flats or those containers I talked about earlier. Renting is cheap in China.

Thus unlike UK VIs who trap people... i.e. if you don't buy you gotta rent b!tch, similar things don't happen in China because of the widescale dorm living. Also that many of the migrant workers simply work for a few years then go home to their home villages and setup business and build homes there.

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Blimey, they don't mess about in China do they? Very interesting, thanks for the info.

No they don't, they actually mean what they say and they are not led by a bunch of inbred morons.

Edited by OnlyMe

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This leaves about 1.1bn rural people, factory workers, migrant workers etc. These people are not affected by property prices since they mostly have accomodation provided by their work places.

A model used for migrant labout in the UK

Thus unlike UK VIs who trap people... i.e. if you don't buy you gotta rent b!tch, similar things don't happen in China because of the widescale dorm living. Also that many of the migrant workers simply work for a few years then go home to their home villages and setup business and build homes there.

A model used by migrant labout in the UK

The rest can hang.

A lot of trouble ahead for the averge UK citizen, the wage differenctials are getting worse in the UK, there might actually be some trickle down in China over the coming decades.

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http://uk.finance.yahoo.com/news/China-warpath-against-tele-2712038169.html?x=0

China on warpath against inflation

Emma Rowley, 17:28, Friday 31 December 2010
China's central bank chief has pledged to keep prices stable in 2011, raising the prospect of further interest rate rises to rein in inflation.
Zhou Xiaochuan, the governor of the People's Bank of China, used his New Year message to reaffirm the shift to a "prudent" monetary policy from the "moderately loose" stance taken as the country tried to drive growth.
His tone was markedly changed from a year ago, when he saw "defeating the international financial crisis" as the crucial task.

Meanwhile, Merv and the muppets contnue with their policy of vigilance (do nothing but watch intently) while London burns.

Think Mr King also say that sort of things. BoE just don't take real action. Talk is talk..

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  • 277 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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