Category: Monetary policy

Yuan to buy American housing? Part 4, Fall back on the tired old trick

4 February, 2016 (10:00) | Apartments, Capital control, Capital markets, China, Exchange rates, Finance, Global news, Housing, Investment, Monetary policy, Rental, Speculation, US News |

By: David A. Smith [Continued from yesterday’s Part 3 and the preceding Part 1 and Part 2.] You must not fight too often with one enemy, or you will teach him all your art of war. Napoleon Bonaparte Whenever a government decides to intervene in the financial markets – and modern governments are already intervening, […]

Yuan to buy American housing? Part 3, Befuddled by free markets

3 February, 2016 (10:00) | Apartments, Capital control, Capital markets, China, Exchange rates, Finance, Global news, Housing, Investment, Monetary policy, Rental, Speculation, US News |

By: David A. Smith [Continued from yesterday’s Part 2 and the preceding Part 1.] Never interrupt your enemy when he is making a mistake. Napoleon Bonaparte Markets have a nasty habit of speaking truth to power, and for that reason, they are worth hearing, even when the power is the newly assertive nation of China […]

Yuan to buy American housing? Part 2, A high price for the honor

2 February, 2016 (10:00) | Apartments, Capital control, Capital markets, China, Exchange rates, Finance, Global news, Housing, Investment, Monetary policy, Rental, Speculation, US News |

By: David A. Smith [Continued from yesterday’s Part 1.] In politics, never retreat, never retract, never admit a mistake. Napoleon Bonaparte As we saw in yesterday’s Part 1, judging by the report in Bloomberg Business (January 14, 2016) and a similar article and editorial in the Economist’s January 16 issue, something is badly awry in […]

Yuan to buy American housing? Part 1, $550 billion in net outflows

1 February, 2016 (10:00) | Apartments, Capital control, Capital markets, China, Exchange rates, Finance, Global news, Housing, Investment, Monetary policy, Rental, Speculation, US News |

By: David A. Smith An army marches on its stomach. Napoleon Bonaparte Cap rates for US real estate are at levels so low they haven’t been seen in half a century, and as I’ve discussed in previous posts, so great is the hunger of real estate yield that no one in the business is prepared […]

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 […]