How can it have the highest Price To Income RE Ratio in the world and have any savings ? Vancouver has a Price Ratio of 13, and every week there's an article on affordability crisis... US has a Price Ratio of 4 on average, Tier 1 in china average 50, china average is 32 even with current housing deflation starting, but loss of jobs and income offset that. According to salaries and real estate prices, with exact same salary in both countries converted, it is 8 times more expensive to own/rent housing in china then in the US, and US residents are deeply struggling with debt... Yes quality of living is much higher, more shit to spend on but it's quite clear to see the obvious. china average Mortgage To Income is 240 %, if your mortgage cost 240 % on your monthly salary as a household, how the fuck can you save anything ? It takes 2.5 times households salary to just pay housing cost, so you obviously have to borrow money in order to live. There is easily over 70 Trillion Yuan in Shadow Banking Personal Debt in china... It's not on the books, but it's there charging 12-15 % Interest and guess what ? If you fail those payments, you will be considered a dead beat, and be banned from planes or high speed trains amongst other things... Retarded government pushed debt down it's peoples throat through vicious money printing Inflation, and then fucks them up/shames them when they get into debt they can't pay ? So what do chinese people do ? Borrow and borrow until the wheels come off, instances where new loans go to entire debt servicing... That's how you end up with one of lowest Consumption GDP in the world, chinese people are too broke to buy shit due to massive Inflation caused by non stop stimulus that greatly benefited the top 2 %, at the expense of 90-95 %. Investment GDP highest in the world, this " powerhouse " is the most dependent country on earth to debt in order to create GDP output. Some economist estimate 5 dollars of debt to create 1 dollar of GDP, if you subtract fake yearly GDP gains - fake debt gains ( GDP much lower, Debt much much higher then reported )
how do you know the price of a cat is worth $100000 USD.... Because a dog fetches more. That was Japan's problem in the 80's. The author must be young, not being cognizant in the 80's, adopting an opinion of another. Bad loans and a BAD , SLOW response. It was a model for our CB ers to avoid hence TaRP, bad banks and all that followed in Bazooka fashion for the US 2008 . No one can do that in such a manner altough "whatever it takes" was Petty good too. Hmm..does China appear to be slow or unable to respomd to what we guess to be their issue.?