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By (user no longer on site) OP
over a year ago
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As chinas economy has fallen what will this mean for the world economy as china got the largest chunk of it. Will we see lower prices for oil at the gas station and cheaper food? |
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By (user no longer on site)
over a year ago
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"As chinas economy has fallen what will this mean for the world economy as china got the largest chunk of it. Will we see lower prices for oil at the gas station and cheaper food?"
I haven't noticed my local takeaway lowering its prices. |
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By (user no longer on site)
over a year ago
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Due to China ignoring copyright laws they import very little in the grand scheme of things. They rely very heavily on their export market and there should be bargains to be had at the lower end of the spectrum. Very doubtful that the Chinese economy will have any direct affect on the commodities market though unless you're an importer of cheap iron ore. They're not a bigger exporter or importer of oil so the affect on oil prices will be nominal. |
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By (user no longer on site)
over a year ago
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It's really only the tech sector that is affected (over valued and required correcting). Other industries seem to be okay going by economic health indicators, so it seems it'll have a smaller outcome than incidents here or in the U.S.
The Chinese central bank has slashed interest and stopped trading which makes things appear worse.
The Economist explain it better. |
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By (user no longer on site)
over a year ago
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"As chinas economy has fallen what will this mean for the world economy as china got the largest chunk of it. Will we see lower prices for oil at the gas station and cheaper food?"
.
Probably yes
There the largest importer of oil in the world, so obviously any slow down in there economy will naturally effect oil and commodity prices!.
Of course the reason there slowing down is because the west is not really buying tat from them at the same rate it was! And there stock exchange was swollen with cheap debt (a bit like everybody else's)
How big a downturn, who knows? Probably quite big but not massive but stock prices will fall nearly everywhere sooner or later
There like Graham and brown wallpaper |
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By (user no longer on site)
over a year ago
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Here's an interesting one. When a mistake is made people get myopic about it being the source of problems and focus on it at the exclusion of other areas of concern. Thus, for the tory government the main problem is to resolve the defecit, as if doing so would help us out of whatever problems might be around the corner. However, they have utterly ignored the problem of low interest rates. At the mo we're at 0.5% As interest rates are what are often used to stimulate the economy, in the event of another crash we're pretty much fucked as we literally cannot lower the interest rate any further so we can't effect the economy in the way we would need to.
Thus future generations may accuse the Tories of wrecklessly letting the interest rates stay low when they should have been working on slowly increasing them to create a buffer. Yes it would have hurt... but it would have hurt the main people who have got us into this mess.. people who are in debt. Of course the big fly in the ointment is that the UK government has rescinded control of the bank's base rate to the bank itself, imagining that whatever is in the banks best interests is also in our own best interests. In this case, however, it might not.
The next crash may be nothing to do with debt it may be totally to do with 0% interest rates meaning that our economies are basically incapable of ressusitation... might be a load of bollocks... but it made me think |
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By (user no longer on site) OP
over a year ago
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China owns pizza express 100% and what will happened with the Chinese that gets all the expensive homes here, it must be getting more expensive to keep them I think. |
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By (user no longer on site)
over a year ago
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"China owns pizza express 100% and what will happened with the Chinese that gets all the expensive homes here, it must be getting more expensive to keep them I think."
Although individuals do invest in the market, it won't really affect the majority of Chinese individuals. |
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By *im himCouple (MM)
over a year ago
bedworth |
"Here's an interesting one. When a mistake is made people get myopic about it being the source of problems and focus on it at the exclusion of other areas of concern. Thus, for the tory government the main problem is to resolve the defecit, as if doing so would help us out of whatever problems might be around the corner. However, they have utterly ignored the problem of low interest rates. At the mo we're at 0.5% As interest rates are what are often used to stimulate the economy, in the event of another crash we're pretty much fucked as we literally cannot lower the interest rate any further so we can't effect the economy in the way we would need to.
Thus future generations may accuse the Tories of wrecklessly letting the interest rates stay low when they should have been working on slowly increasing them to create a buffer. Yes it would have hurt... but it would have hurt the main people who have got us into this mess.. people who are in debt. Of course the big fly in the ointment is that the UK government has rescinded control of the bank's base rate to the bank itself, imagining that whatever is in the banks best interests is also in our own best interests. In this case, however, it might not.
The next crash may be nothing to do with debt it may be totally to do with 0% interest rates meaning that our economies are basically incapable of ressusitation... might be a load of bollocks... but it made me think "
0 .5% interest rates have stolen money from savers to prop up banks . Our banks can not handle higher interest rates , it would see most of them go to the wall . All this printed money to , all it has done is make things worse and what we are seeing in the stock markets around the world is the start of the next big big crash I think . All printed money has done is over inflate asset and bond prices to levels that are living In cloud cuckoo land . The way I see it , we stopped living in a captillsed society in 2008 . If my business runs out of money it's bust , simples !
I think governments banks and main stream media ie bbc are taking us for ride and something has to change or future generations are going to be in big trouble .
We have started watching the Keizer report on RT . Totally different view to the crap that main steam media peddle . |
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By (user no longer on site) OP
over a year ago
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"China owns pizza express 100% and what will happened with the Chinese that gets all the expensive homes here, it must be getting more expensive to keep them I think.
Although individuals do invest in the market, it won't really affect the majority of Chinese individuals. "
YEs and good point as its just some it affects. |
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By (user no longer on site)
over a year ago
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"Here's an interesting one. When a mistake is made people get myopic about it being the source of problems and focus on it at the exclusion of other areas of concern. Thus, for the tory government the main problem is to resolve the defecit, as if doing so would help us out of whatever problems might be around the corner. However, they have utterly ignored the problem of low interest rates. At the mo we're at 0.5% As interest rates are what are often used to stimulate the economy, in the event of another crash we're pretty much fucked as we literally cannot lower the interest rate any further so we can't effect the economy in the way we would need to.
Thus future generations may accuse the Tories of wrecklessly letting the interest rates stay low when they should have been working on slowly increasing them to create a buffer. Yes it would have hurt... but it would have hurt the main people who have got us into this mess.. people who are in debt. Of course the big fly in the ointment is that the UK government has rescinded control of the bank's base rate to the bank itself, imagining that whatever is in the banks best interests is also in our own best interests. In this case, however, it might not.
The next crash may be nothing to do with debt it may be totally to do with 0% interest rates meaning that our economies are basically incapable of ressusitation... might be a load of bollocks... but it made me think
0 .5% interest rates have stolen money from savers to prop up banks . Our banks can not handle higher interest rates , it would see most of them go to the wall . All this printed money to , all it has done is make things worse and what we are seeing in the stock markets around the world is the start of the next big big crash I think . All printed money has done is over inflate asset and bond prices to levels that are living In cloud cuckoo land . The way I see it , we stopped living in a captillsed society in 2008 . If my business runs out of money it's bust , simples !
I think governments banks and main stream media ie bbc are taking us for ride and something has to change or future generations are going to be in big trouble .
We have started watching the Keizer report on RT . Totally different view to the crap that main steam media peddle . "
I certainly think that the powers who be have decreed that the only real way out of this mess is to convince consumers that it doesn't exist, that money has a certain value, and to basically do the whole jedi mind trick of "there are no droids here". I wouldn't be surprised if we discovered a few decades from now that the media were being fed what to say from powers above them in this regard.
How do you stop a run on the bank? Don't let anyone know about it. The media is complicit in the value of money and our confidence in the system |
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By (user no longer on site)
over a year ago
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Keep swimming keep swimming keep swimming...
It started well before 2008 I'm afraid, I think the credit crunch put some spotlight on the problem but they were bailing out the hedge long term capital in the 90s the dot com bubble alone would have been the "2007 problem" had it not been overtaken by bigger things a year later!
If you want an historical trend, what follows a crash and always leads to a boom  |
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By (user no longer on site)
over a year ago
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"As chinas economy has fallen what will this mean for the world economy as china got the largest chunk of it. Will we see lower prices for oil at the gas station and cheaper food?"
One thing it will probably stop is the central banks raising interest rates in new year. |
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By (user no longer on site)
over a year ago
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"I have noticed the petrol is cheaper, usually its 117.9 now its down to 112.9 how much where you are?"
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Oil has dropped from 80 bucks in June to around 40 bucks, which is about the length of time that the market has started to worry about the Chinese economy!
Coincidentally copper has followed pretty much exactly oil from 3k a tonne to 2.3k. Personally that's a  .
The Yuan or renimbi have devalued massively and that means that were more than likely not going to be putting interest rates up and more likely to be doing QE4.
The worrying thing will be if the dollar the euro and by default the pound will follow the devaluing trend now set by China! |
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Alot of chinas growth has been fake or debt fueled and unsustained, there's new towns built and only a few people actually live in them, and all those small investors got suckered in, like those in the 1920s.
But we have a system based on confidence, and it produces upS and downs |
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There's loads of shit going on as a consequence of the Chinese stock market (not economy) tanking.
The economy is growing but at a slower rate than predicted. This is something of a relief for the Chinese g'ment tbh.
But.
* it has massive consequences for the price of oil (now at $42 p/barrel, I think)
* which fucks the Russians & Venezuelans
* the Indian stock market lost 6% this week
* Greek's index lost another 10%
* interest rate rises unlikely in UK & US
Amongst much else... |
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