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China is looking to spend the money it is printing on something outside of china to keep inflation at bay in china. China is printing money to keep its currency subdued against the US dollar and the US is printing like money is going out-of-fashion as it tries to depress interest rates to spur lending but ignoring the fact that this wont work as consumers don't want the debt (they are saturated), and companies don't need it as they have big cash reserves thus that is flogging a dead horse.
This leads me to my next point. china has to print the money, or its currency will appreciate against the tanking US dollar thus making its exports less attractive to to higher prices (same thing which is happening to our exports due to the high dollar).
So china is on an international spending spree, primarily for infrastructure purchases.
Now If all the company's in NZ are foreign owned, then all the profits are foreign owned. That represents money leaving NZ. When money leaves NZ, NZ itself becomes poorer. Those current account deficits actually do mean something; NZ getting poorer. How can you ever get paid more if less money is sloshing around to be paid.
This grouping includes exports, we don't own basically any of our forests. and sooner or later, fonterra will be sold as well.
觉得这个人说的蛮有道理的。 |
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