China’s credibility??

Discussion in 'Economics' started by Financial Saint, May 27, 2010.

  1. This is not a post about whether China is buying or selling Euro debt or currency, but is about: can we trust anything that comes out of China. China is still a communist country. It is run by a socialist communist party, which 300 of their top members run the entire country. The corruption extremely high, a lot of people think that corruption in China is not as bad like it is in Eastern Europe. My strong belief is that it is about the same or worst. I just think the Chinese are more disciplined as people and that discipline in a system does not allow for the news about corruption to leak out, like in Eastern Europe or any other highly corrupt countries.

    So the conclusion is: “The Chinese do not have the credibility that a lot of people are giving them.”
  2. I will take the other side of the coin - what makes you think that China ISN'T credible?
  3. TGregg


    If everybody knew you had a crapload of Euro and scary things were happening, would you?

    A: Warn everybody you are about to dump it before you do;
    B: Lie to everybody that it is an awesome currency that you'll keep `til you die, then dump it; or
    C: Tell everybody it's awesome and keep it?

    A is a choice so poor even CNBC anchorbabes know better. IMO it makes sense to do at least a little of some form of B - lay off some risk in some manner.
  4. this has nothing to do with corruption. Why would you trust ANY government including our own?

    Is your last name Gullible?
  5. Reguardless of the sentiment issue they have the equity and capital to make things happen.

  6. TGregg


    With great power comes great responsibility. They've got a lot of skin in the game.
  7. China is NOT a communist country. Not even close.

    It is very much totalitarian, although it's probably a kinder and genlter form of totalitarianism.
  8. sumfuka


    The smartest people in the world can't figure out China, I doubt you could figure them out. There are a lot of times China would do things that makes absolutely no sense, predictable or for any particular reason. They're kind of like psychos; 'its best to stay away' LOL :D