Re: Question for Peter Schiff: "Are you sure about China?"

[thiscreepingmalaise]

she said "come out, on top." I just went from 6 to midnite!!

[PunjabiSikhRajput1]

wow a girl interested in economy and money... I only watched cause i couldnt believe it... nigga yea...

[eyecoin]

Wow. I rarely see a nice girl like you who pays so much attention and remembers so much. Very thoughtful. Are you single?

[Warzoooooo]

Through out history, the country with the highest production have been able to have the highest livingstandard. Now for a long time, US citizens have been living the life that the Chines should have been living, due to fiat-currency with a worldcurrency status. That all is coming to an end.

If a person produces alot of food, he can eat well. And if he produces furnitures he can live comfortably. The same goes for a nation, if they produce the get a higher livingstandard.

[aviomaster]

- You are very beautifull , I can not focues on your point ... I am sorry ...

ALL nations who produce and sell and save ,, will be creditor nations , USA can go make large deficits cause Dollar is worlds reserve currency , and The world shares the suffering with USA. Zimbabwe is different , nobody wants to hold Zimbabwe dollars in the world. Peter Shiff point is that Chinese are going get rid off the dollar and That will be real problem.

[tangldmojo]

...will China be able to triple the living standard of it's average citizen in the next year or two? If they can't (and how could they?), I just don't see who it is that will be doing the consuming, post WWII-type retooling notwithstanding.

[L1661N6]

dang this girl is fine!!

[vladcubax]

your are brilliant lady...thank you for the insight you made things clearer now.

[nanosec99]

Good video :-)

The Chinese goods will always be inexpensive for Americans as long as the Chinese artificially peg the Yuan to the US dollar. (Its actually a basket of currencies, but mostly the US dollar) One of their options is local consumption. But remember, most of the Chinese people live in poverty. Their other options are the Eurozone, South America, and Africa. Although the Chinese are not perfect, they are in a much better position then the US for long term economic growth.

[Lucky7wins]

The only difference is that Zimbabwe suffers alone while the US suffers among the rest of the nations.

[Lucky7wins]

The US is like Zimbabwe. Both are going to suffer hyperinflation and the paper currency will become worthless.

[nambypamby34]

So your saying China will adjust meaning a "decoupling". I agree completely. Good job! You seemed nervious so thats why I'm saying that. I'm still kinda fearful to go on camera.

[stellaconcepts]

thank you for the response... muchly appreciated.

makes a lot of sense

[ulysseinvest]

John,

To add some numbers to this answer made to your video:

China's GDP is 4.4 trillions $, out of which exports are 1.4 trillions and imports are 1.1 trillions. The US market represents 20% of the Chinese exports (250 billion dollars). If the dollar drops say 50%, then they will stop buying what China "imports" (electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, plastics, organic chemicals) which will translate into... (tbd)

[ulysseinvest]

(#2)

...translate into cheaper prices for whatever China "imports" (i.e. less imports). All these equal, you will see a "re-shuffle" of Chinese workforce but the damage from a "macro-economical" viewpoint is of a degree that can be absorbed within 3 to 5 years (ex: unemployment rate moves from x% to x+5% then drops back to x% a few years later). The distortion in the current US macro-e structure however will probably take anywhere north of 20 years to correct (rebuild factories, savings, etc).

[ulysseinvest]

(#3)

So the day the dollar drops (when it does - and it will) US will stop buying Chinese goods thus forcing China to lose 250B$ on exports but at the same time allowing prices for other stuff China imports to lower tremendously - and but for the re-shuffle of the Chinese workforce - China should be roaring again in 2 to 4 years (from beg of recession). Back to your question - YES it's probably best to not invest all you have in China TODAY... but then, Austrians never try to time markets...