Category: Monetary policy

Runaway money train: Part 4, Pretending not to understand

25 July, 2013 (09:00) | Capital markets, China, Economics, Fiscal policy, Global news, Monetary policy, Money, Regulation, Speculation |

By:David A. Smith   [Continued from yesterday’s Part 3 and the preceding Part 1 and Part 2. ]   Now we’ve established that China’s monetary policy first drove China’s economic expansion via supply-side economics, fueling an economic symbiosis between state-owned enterprises and municipalities who combined to do large-scale real estate and urban development (including new high-rise housing in […]

Runaway money train: Part 3, Timing the explosion

24 July, 2013 (09:00) | Capital markets, China, Economics, Fiscal policy, Global news, Monetary policy, Money, Regulation, Speculation |

By:David A. Smith   [Continued from yesterday’s Part 2 and the preceding Part 1.]   As we saw yesterday and the day before, evidence is mounting that China’s supply-side economy has been driven by monetary expansion, which for years the Central Bank of China encouraged so as to drive development and China’s warp-speed urbanization.   […]

Runaway money train: Part 2, Bust unless bailed out

23 July, 2013 (09:01) | Capital markets, China, Economics, Fiscal policy, Global news, Monetary policy, Money, Regulation, Speculation |

 [Continued from yesterday’s Part 1.]    By:David A. Smith   Yesterday we saw that China’s economy has for decades been supply-driven – if the economy produces goods, someone (usually a foreigner) will buy them, and this will grow China’s GDP and accumulate profits and cash that the government can then use to build China’s industrial […]

Runaway money train: Part 1, Out-of-control credit growth

22 July, 2013 (12:11) | Capital markets, China, Economics, Fiscal policy, Global news, Monetary policy, Money, Regulation, Speculation |

By:David A. Smith   If I’m reading the tea leaves correctly, China’s central bank has lost control of its supply-driven economy, with consequences somebody other than I will have to foresee, because to me this looks like a runaway train picking up speed.   We’re completely on track   But as with all things Chinese, […]

Another piece of the Chinese housing puzzle: Part 2, collapsing without crashing?

28 December, 2010 (12:32) | Bubbles, China, Global news, Housing, Inflation, Monetary policy, Real estate taxes, Speculation, Taxation |

[Continued from yesterday’s Part 1.]   By: David A. Smith   Rearranging the Chinese puzzle pieces in light of the new information presented in a solid Telegraph story by Ambrose Evans-Pritchard, reported in yesterday’s Part 1, that China’s expansionist monetary policy was designed to keep its economy growing even in the face of a global […]