Trillions Heading Our Way?

[Davo36]

Is Bernie right?

Bernard Hickey: There'll be only yuan winner

We ain't seen nothin' yet. The revelation that Shanghai Pengxin is buying Lochinver Station should not be a surprise to anyone watching the capital flows out of China in the past few years.

Link

Bernie reckons trillions of Chinese dollars/yuan/whatever could be about to head out into the world looking for assets.

Do PTers agree? Or is this another Uradashi Tsunami? i.e. a non event?

[eri]

100 years ago we were worried the russians might come here and take our land without paying for it

they didn't

60 years ago the russians had become our friends but we were then worried the japanese might take our land without paying for it

they didn't

30 years ago the japanese were now our friends but we were worried they would buy too much of our land

they didn't

now we've forgotten about the japanese and are worrying the chinese might buy as much land here as everyone else already has

they haven't

in 30 years time when their population is shrinking, they have too many homes and the demands of their aged outstrip the taxes paid by their youth we'll have forgotten about them too

wonder who we'll be afraid of then

maybe those smart brazilians?

or thinking robots?

ot horror of horrors

brazilians making thinking robots out of didymo

[Davo36]

wonder who we'll be afraid of then

maybe those smart brazilians?

or thinking robots?

ot horror of horrors

brazilians making thinking robots out of didymo

Rock snot power, now that'd be awesome!

But for each of those examples there are plenty that go the other way:

1) Japan DID buy most of Hawaii in the 80s, they still own it.

2) Russia just took back the Crimean Peninsula - although their error in shooting down 300 innocent people might put paid to that.

3) Russian oligarchs own heaps of central London, along with the Arabs. See them giving that back?

4) Germans, Dutch, British, US and heaps of others own heaps of farming land here now. Do you reckon it'll be bought back by kiwis?

[Davo36]

Well, Weekend at Bernies, who sold his house in Auckland 18 months or so ago because he thought prices had maxed out, is spewing again:

Bernard Hickey looks deep inside the Reserve Bank's Financial Stability report and finds out just how much Auckland's housing market dictates New Zealand's finances

Posted in Opinion November 16, 2014 - 07:30am, Bernard Hickey

The horse has bolted; Auckland's dominance is increasing and its housing market issues over-ride the needs of the rest of New Zealand.




By Bernard Hickey
Auckland is incredible, and not just because of way its property owners will happily crash websites in their quest to know how much their houses are worth.
Or in the way they will then ring up their mortgage broker to see how much extra they can borrow to buy a new car or boat.

Auckland has become barely believable in a financial sense, but absolutely crucial in the eyes of those pulling New Zealand's interest rate and lending levers.

This week's Financial Stability Report from the Reserve Bank made it crystal clear that Auckland has become the centre of New Zealand's economic and political universe, more now than ever.

Rest of Article

[eri]

parnell says it is nz's oldest suburb

http://en.wikipedia.org/wiki/Parnell,_New_Zealand

which should mean auckland is nz's oldest as well as largest city

and so

has it ever NOT been the centre of nz's economic universe?

as for being the political heart as well

i think auckland has more parliamentary seats

than wellington and the south island combined...



wonder how much bernie has missed out on by selling up in auckland too early

$100,000, $200,000, more?

that's gotta eat away at you while you slave away for $70,000pa? gross

[Davo36]

wonder how much bernie has missed out on by selling up in auckland too early

$100,000, $200,000, more?

that's gotta eat away at you while you slave away for $70,000pa? gross

Especially when you're on the telly, radio etc. as a financial commentator!

[eri]

fortunately

as a financial commentator

not adviser

[speights boy]

2) Russia just took back the Crimean Peninsula - although their error in shooting down 300 innocent people might put paid to that.

Exploiting Russia sanctions 'a bad look'

Prime Minister John Key says major companies such as Fonterra have been asked not to exploit the gap left by other countries' trade sanctions on Russia because to do so would be a "terrible look" for New Zealand.

Mr Key said he was not surprised other leaders had expressed their views to Mr Putin so forthrightly, but he denied New Zealand's lack of sanctions was undermining the message sent by other Western nations.

www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11359580

[elguapo]

1) Japan DID buy most of Hawaii in the 80s, they still own it.

In 1920 50% of the population of Hawaii was Japanese, they are still a large minority on the islands.

4) Germans, Dutch, British, US and heaps of others own heaps of farming land here now. Do you reckon it'll be bought back by kiwis?

What is your definition of a Kiwi?

[PTILoveYou]

There are 3 Chinese banks setting up house in NZ (well mainly Auckland).

One has already been granted the NZ banking license and is setting up.

The other two have started the process.

Yes lots of money coming our way.

[speights boy]

fortunately
as a financial commentator
not adviser

He spoke more sense - IMO - than the commentator sitting beside him, during the Q+A program on TV 1 yesterday.

[jimO]

chinese cant buy anything in China they can only lease so i think we should be leasing them farms etc, i have no problem with them owning houses though

[skid]

Yes,After all a free trade agreement should be RICIPRICAL shouldnt it?

[Davo36]

Heard a comment on the radio this morning about eduction in China, how the pressure is incredible, cheating is rife and the pressure never comes off of students - which is why many parents like them to study here.

So just another reason many of them are coming here. Kids come first, parents come later with the dosh.

[PTILoveYou]

Well education in China is complex, but one thing is clear, the pressure on students is enormous!

Basically even at primary school (start at age 6 or 7, and lasts 6 years), students begin their study before 8am and finishes at 5pm. There's also a lot of homework at the end of each day, for weekends, and even school holidays!

Once into intermediate and then high school (3 years each), there will be more and more "after hour' tuition required. All this is to prepare for the eventual high school exam at age 19/20.

The high school exam is basically the university entrance exam, which there is a lot of pressure. If the students don't get good marks, they don't go into the universities they want.

After joining uni, the pressure is a lot less, but there will be pressure again when leaving uni to find jobs.

Parents don't send kids overseas so that the pressure on kids are less, they send kids out because they think there's higher quality education overseas, and more opportunities once they come back to China or stay overseas.

Nowadays more and more parents are sending out their kids for eventual emigration.