Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.

Wednesday, October 28, 2020

👉Why the Chinese Economy Taking Off While the Rest of the World is Collapsing ?!

👉Why the Chinese Economy Taking Off While the Rest of the World is Collapsing ?! Why the Chinese Economy Taking Off While the Rest of the World is Collapsing The economic benefits of containing the pandemic are uneven across the globe, but one success story stands out. China is winning the economic recovery race. Just as it led the world in economic recovery in the aftermath of the global financial crisis of 2008, it is playing a similar role today. While most of the world is still grappling with the pandemic, China is proving once again that a rapid economic rebound is possible when the virus is brought firmly under control. China's economy grew 4.9 percent in the July-September quarter compared to the same months last year, the country's National Bureau of Statistics announced Monday. The robust performance brings China back to nearly the 6 percent growth rate it had before the pandemic. Exports jumped, and local governments engaged in a binge of debt-fueled construction projects. Even consumer spending is finally recovering. Many of the world's major economies quickly emerged from the depths of a contraction last spring when closures caused production to drop sharply. But China is the first to experience growth that significantly exceeds where it was at this time of last year. The US and other nations are also expected to see a surge in the third quarter but are still lagging behind or just catching up to pre-pandemic levels. China's lead could widen further in the coming months. It has almost no local transmission of the virus, while the US and Europe face another accelerating second wave. China’s success is impressive; their infrastructure campaign is truly admirable and forward-thinking. Meanwhile, the US has squandered a period of historically low-interest rates when our government could cheaply borrow to restore and expand our infrastructure. We have crumbling bridges and roadways, zero high-speed rail, deteriorating 19th-century water and sewer systems, etc. Government-funded infrastructure projects would create jobs and secure our future competitiveness. A win-win. Instead, we lavish unnecessary tax breaks on corporations and the wealthy that create no trickle down jobs and no investment in our future. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to click the like button. Many of you have asked me where they can buy silver and gold bullion. You will find in the description box the links where you can buy American Silver Eagle, Silver Bars, or Rounds. I highly recommend that you start stacking some Silver Bullion for the future. The vigorous expansion of China's economy means it is set to dominate global growth - accounting for at least 30 percent of world economic growth this year and for years to come. Chinese companies account for a larger share of world exports, produced consumer electronics, personal protective equipment, and other goods in high demand during the pandemic. At the same time, China is now buying more iron ore from Brazil, more corn and pork from the United States, and more palm oil from Malaysia. This partly reversed the downward trend in commodity prices last spring and mitigated the impact of the pandemic on some industries. However, China's recovery has done less to help the rest of the world than in the past because its imports haven't grown nearly as much as its exports. This model has created jobs in China but has held back growth elsewhere. China's economic recovery has also been dependent for months on huge investments in infrastructures. And in recent weeks, the country has seen the start of the recovery in domestic consumption. The wealthy and the people living in the export-oriented coastal provinces were the first to start spending money again. But economic activity is also picking up in places like Wuhan, the city in central China where the pandemic started. China's economic growth over the past three months has been slightly below economists' forecasts, from 5.2 to 5.5 percent. But the performance was still strong enough for equity markets in Shanghai, Shenzhen, and Hong Kong to rally in early Monday trading. The growing recovery of the country was also manifested in the economic statistics only for the month of September, also published on Monday. Retail sales were up 3.3% last month compared to a year ago, while industrial production was up 6.9%. Determined to keep the local transmission of the virus at or near zero, China has resorted to comprehensive population monitoring via cell phone, weekly block and city blocks, and costly mass testing in response to even the smallest epidemics. China's rebound also has some weaknesses, most notably an increase in overall debt by an amount equal to one-third of the economy's overall output. Much of the additional debt is made up of loans taken by local governments and state-owned enterprises to pay for new infrastructure ;or loans taken by households and businesses to pay for apartments and new buildings. Another risk to China's recovery is its heavy reliance on exports. The surge in exports over the past three months, coupled with lower commodity import prices, have accounted for a sizeable part of economic growth. Exports still account for over 17 percent of the Chinese economy, more than double the share they represent in the US economy. Chinese leaders recognize that the country's exports are increasingly vulnerable to geopolitical tensions, including moves by the Trump administration to ease trade relations between the United States and China. Changes in global demand could also threaten exports, as the pandemic affects overseas economies. Xi Jinping, the Chinese leader, has increasingly emphasized self-sufficiency, a strategy that requires expansion of the service sector and innovation in the manufacturing sector, as well as enabling residents to spend more. Beijing's approach to helping ordinary Chinese during the slowdown has been to provide companies with tax rebates and large loans from state-owned banks so that businesses don't need to lay off workers. But some economists argue that Beijing should instead distribute coupons or checks to assist the country's poorest citizens more directly. Millions of Chinese immigrant workers endured at least a month or two of unemployment in the spring, as factories were slow to reopen after the outbreak. But Chinese government economists are wary of providing direct payments to consumers. They say the government's priorities are investment-led growth and measures to improve productivity and quality of life, such as digging new sewer systems or adding elevators to three million old apartment towers that don't have them. Western governments have experimented with extra-large unemployment checks, one-time payments, and even subsidized meals in restaurants. These payments were aimed at helping families maintain a minimum standard of living during the pandemic - which in turn has fueled the demand for imports from China. The widening trade surplus - in which the rise in exports outstripped the growth in imports - represented 0.6 percentage points of economic growth of 4.9 percent, an official said Monday. The rest is due to consumption and investments in China. Overall, China's economy was mainly driven by domestic demand. But as people in other countries, backed by government subsidies, continue to turn to China for products during the pandemic, we will see a resurgence of the trade conflict, and not only US-China but globaly. China, which is set to surpass the US as the world's largest economy sometime in the next decade if it hasn't done so already - is about to set another record, this time in the capital markets. Ali Baba Jack Ma’s Ant Group is aiming to raise at least $34.4 billion through initial concurrent public offerings in Shanghai and Hong Kong, a blockbuster listing that will rank as the world’s biggest share sale ever, surpassing the Saudi Aramco’s $29 billion IPO last year. The trade war has done nothing but to awaken China and the world to divest from American tech and know-how. There is a lot of inertia preventing the easy moving of jobs and firms back to America from China. When there are competing firms within a sector, all using cheaper Asian labor to make their products, then how does the moving back get initiated? No company wants to be first because that would leave it with a competitive disadvantage. There has to be an incentive for all of them to move back together. There must be a profit incentive and/or sanctions of some kind and/or inducements of some kind. Tariffs would only work if they are high enough to remove the cheap labor differential. Coming back is a lot harder than leaving. There must be political will. The pandemic has increased that will, but it was not enough. Our politicians jumped on the Globalization bandwagon a long time ago. Will they jump on the redomiciling wagon as quickly? Some companies like Tesla want to be in China because that makes it easier to sell their Electric Vehicles in China. Apple is moving some manufacturing of iPhones to India because that allows its phones to be duty-free. Otherwise, the phones are too expensive for India’s consumers to buy. But that just shows that tariffs work for Indians to bring work to their country. If it works there, why not equally well in the USA? How can we build and maintain a strong middle class in America when most of America’s politicians are busy building up the middle class in China. The American middle class has been getting decimated for a long time, every downturn, it speeds it up. The 2008 crash wiped out half the middle class. This one will finish it. China's middle class is 400 million strong today; that number dwarfs the entire population of the USA. The USA is declining because it has become arrogant, complacent, and blind. China now has a larger number of consumers than the US, and its middle class is growing. Meanwhile, the super-rich in China earned $ 1.5 trillion during the pandemic. This was revealed by the Hurun report, a Shanghai-based research institute famous for its annual list of the super-rich. The Chinese Scrooge in the last five months have accumulated more wealth than the last five years combined, thanks to the boom of e-commerce and that of online games. Their total wealth has reached 4 trillion dollars. China is now working with Russia, South Africa, and the central Asian countries to move away from using the US Dollar and The EURO for trade. The time for threatening to cut off China from the west is long gone; they no longer need nor rely on the west. China is trying to unload the tons of worthless American IOUs it has by any means necessary. There is a new plan can help the Chinese economy surpass America in 10 years. This week, Chinese officials will meet to discuss the next phase of economic development, just a few days before the US presidential election. China's 14th Five-Year Plan is forecast to focus on technological breakthroughs, economic autonomy, and a cleaner environment. The official also set a target for the next 15 years, when Chinese President Xi Jinping wants to materialize his commitment to reform by gaining global leadership in technology and other strategic industries. China's conference is a closed event and lasts until Thursday. If the Chinese economy - which is recovering fairly quickly from the pandemic - can maintain its trajectory of growth in recent years, it will overtake the US in the next decade. The prospect of a potential conflict with the United States will increasingly strengthen president Xi's strategy - helping China avoid the effects of global economic upheaval. This reflects China realistically reassessing the current global environment, into R&D and breakthrough. This is a necessary and prudent move against external uncertainties. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my back up channels; I do upload videos there too. 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Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.

1 comment:

Jim Rogers "the 19th century was the century of the UK , the 20th century was the century of the US , the 21 st century is going to be the century of China "
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