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Interesting video. So China has no debt and over USD $4 Trillion in savings...however as Dave points out it's the older generations with the capital and the 'young' (not sure what age group maybe 18 to 25 yo) are spending probably cos they know they'll inherit their parent's $$ and most won't have siblings to fight with over the inheritance either. It will become tricky for the future generations if the 'spenders' actually never grow out of it and spend through their inheritance etc....will China then start taking on lots of debt?
cheers,
Donna
Many individual Chinese citizens have money to spend but the Chinese Governmnet has seriously worrying debt levels of 4.6 Trillion USD currently:
The Chinese announced they have managed to keep their US dollar reserves at above US$3 tln as at June. That is six straight months it has held above that level. And they are keeping up the pressure to avoid the type of outflows we saw in 2016. They issued a new ruling on Thursday requiring all banks to report their transactions above 1000 yuan (NZ$200) within 24 hours, starting from August 21.
US consumer credit flows drop; Tesla seeks junk funding; China clamps down harder; EU toughens divorce claims on UK; UST 10yr yield at 2.26%; oil down, gold unchanged; NZ$1 = 73.6 US¢, TWI-5 = 76.1; bitcoin hits record high
Seems to be all a matter of what you call it / how you label it.
An example is the gNational gummint claiming that it is fiscally prudent, as it mumbles about elections bribes (aka tax cuts).
Yet their own 'books' expose that lie, showing that gummint debt has gone from 18 to 80 billion dollars, while Blenglish has had his hands in and on the till / cash register.
Have a look here. COUNTRY COMPARISON :: CURRENT ACCOUNT BALANCE Current account balance compares a country's net trade in goods and services, plus net earnings, and net transfer payments to and from the rest of the world during the period specified. These figures are calculated on an exchange rate basis.
Zero sum game ...the japanese print money to buy debt (think I read the JCB holds like 80% of Japans treasury Debt...and the bulk of there Banking debt) so they increase their debt to take on more debt so the rates of that debt doesn't increase to Junk status and implode their currencies value and economy >> think japan has something like 200%+ Debt to GDP ....
Auckland company Ping An fined $5.29 mln for 'calculated and contemptuous disregard' for anti-money laundering laws
A High Court judgment in a case brought by the Department of Internal Affairs against Ping An Finance (Group) New Zealand Company Ltd and its director Xiaolan Xiao, is the first determination of financial penalties claimed under the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act), which came into force in 2013.
So the first people caught with anti money laundering laws are Chinese, shocker.
The Department of Internal Affairs, one of New Zealand's three AML/CFT Act regulators, alleged that, between January 2014 and January 2015, Ping An and Xiao "failed abysmally” to comply with requirements of the AML/CFT Act with respect to 1,588 financial transactions involving a total of $105.4 million.
$100 million would buy quite a few homes in Auckland. At least at the start of this latest bubble. BUT of course we're told foreign transactions are only 3% of the market blah blah blah.
$100 million would buy quite a few homes in Auckland. At least at the start of this latest bubble. BUT of course we're told foreign transactions are only 3% of the market blah blah blah.
Money comes from China.
Buyers come from the names of Chinese residents in NZ.
Simple but affective.
There is an interesting post over at Whaleoil regarding the Overseas Investment Amendment Bill being rushed through the House. Written by a guest commentator. It's quite long, but well worth a glance esp about impact on returning Kiwis and on the housing market impact generally (or maybe not so much, actually on the latter). Some good comments on the post too.
There is an interesting post over at Whaleoil regarding the Overseas Investment Amendment Bill being rushed through the House. Written by a guest commentator. It's quite long, but well worth a glance esp about impact on returning Kiwis and on the housing market impact generally (or maybe not so much, actually on the latter). Some good comments on the post too.
Quite long? Only if you have a very short attention span.
Written by a guest commentator - a WH - whoever that might be.
I don't think this guest is right.
A kiwi citizen, born and bred, living overseas is not an 'overseas person'.
So they are not caught in this change - they can buy when they get back home.
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