Re:‘A Powerful Signal of Recessions’ Has Wall Street’s Atten...
by jakecrouch on Monday June 25, 2018 @01:24PM
(#17394071)
One explanation of the inflation of the public and private markets in the US is that the Chinese are in the middle of a massive debt bubble, anyone with cash there has nothing good to do with it, so they've been willing to invest in the US at almost any price.
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Re:‘A Powerful Signal of Recessions’ Has Wall Street’s Atten...
by adventured on Monday June 25, 2018 @11:46PM
(#17397721)
That isn't a good explanation. China has extremely tight capital export controls in place, you can't easily get your money out of China to invest it into the US.
Beyond the annual $50,000 currency conversion limit they've put into place domestically, they've also made it an obnoxious and suspicious process to go through even if you attempt to convert the allowed $50k.
The US is far wealthier than China is anyway, and that's with 1/4 as many people. There is no need for Chinese capital to spur asset inflation in the US, the US has more than enough capital to do that on its own.