Category: money

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, […]

Eight desperate tries for when money disappears: Part 2, break your contracts

3 January, 2013 (10:00) | Capital markets, Eurozone, Global news, insolvency, money, Sovereign bankruptcy, Spain, Speculation |

[Continued from yesterday's Part 1.]   By:David A. Smith   Yesterday’s post on the grim realities of Spain’s economy, using a New York  Times (December 17, 2012) article, organized the ways in which an insolvent entity that has run out of cash can try to avert complete collapse and presented the first three: stretch accounts […]