Same with California. They've been cooking the books for so long even they don't realize how bad it is. The state and local unfunded pension and other liabilities are over $1.3 trillion.
I'm hoping to be out of here before Newsom goes nuts and starts seizing everything. He's already floated the idea of continuing to tax people that have moved to other states.
Same with California. They've been cooking the books for so long even they don't realize how bad it is. The state and local unfunded pension and other liabilities are over $1.3 trillion.
You'd think the fifth largest economy in the world would be swimming in cash from all the tech manias and capital gains taxes.
He's already floated the idea of continuing to tax people that have moved to other states.
From what I understand, one of China's levers of influence over the US is that they threaten to fuck with the value of the USD because of how much cash they've hoovered up over the decades.
If remotely accurate, I'm beginning to wonder how empty this threat really is. This news could potentially give the US some leverage, if they had the balls to take advantage of it.
Where were the Hunter cases filed? California. He's going to try and take Biden down so he can step in. Kamala will try to scuttle him, since they hate each other.
They tried to implement this kind of tax in washington state and Jeff Bezos immediately left and took 50% of the wealth tax with him.
If Bill Gates leaves then 100% of the new tax just left…
All they have succeeded in doing is a MASSIVE increase in surveillance - previously they had to monitor your income. Now they have to double that infrastructure to monitor you for other assets. A complete nightmare at tax time…. And its only a matter of time before it is expanded to the middle class.
I'm already concerned that if I visited California for even one day, I'd somehow be stuck with paying California taxes from another state for the rest of my life.
Visiting California will be like a Spec Ops mission in the future. Do not bring your credit cards. Buy only with cash. Do not bring your own cell phone. Use a burner phone purchased with cash. Be picked up by someone with a California license plate at the border, and in a nondescript location. Wear plain clothes and sunglasses or a hat to disguise your identity. Do not eat the local food or drink local water if possible. Limit your exposure to Californian citizens and their discussions or entertainment to 20 minutes per day. Excess exposure can lead to elevated heart rate, high blood pressure, nausea, stroke, aneurysm, and suicidal tendencies.
"Hello, Citizen KekistanPM_$autofillFromForm, you are receiving this bill for $1,294,395.77 for the reason of you transited through Gavin Newsom People's Air Transport Center (formerly LAX) on Second Seventh, KwaHauFest PNE 4 (December 14, 2023). This bill must be paid in its entirety withing 72 hours."
China has been accused of fixing its currency, the renminbi, at an artificially low level for many years. This has given China an unfair advantage in international trade, as it makes its exports cheaper and imports more expensive. However, this policy has also created some structural issues and problems for China's economy, such as:
Excessive reliance on exports and investment. By keeping its currency undervalued, China has stimulated its export sector and encouraged domestic investment in infrastructure and manufacturing. However, this has also led to a neglect of domestic consumption and services, which are more sustainable sources of growth and employment. China's economy has become unbalanced and vulnerable to external shocks, such as trade wars and pandemics.
Large accumulation of foreign exchange reserves. To maintain its currency peg, China has had to intervene in the foreign exchange market by buying foreign currencies and selling renminbi. This has resulted in a massive build-up of foreign exchange reserves, which reached over $3 trillion in 2021¹. However, holding such large reserves has opportunity costs, as China could have used the funds for more productive purposes, such as social welfare and environmental protection. Moreover, China faces the risk of capital losses if the value of its reserve assets declines due to exchange rate fluctuations or inflation.
Financial repression and debt accumulation. To prevent inflation and capital outflows, China has imposed strict controls on interest rates, credit allocation, and capital movements. This has created a system of financial repression, where savers are paid low returns and borrowers are subsidized. This has distorted the allocation of resources and encouraged excessive borrowing and lending, especially by local governments and state-owned enterprises. China's total debt-to-GDP ratio rose from 147% in 2007 to 286% in 2020², raising concerns about financial stability and debt sustainability.
These structural issues and problems have become more evident and acute in recent years, as China's economy has slowed down and faced increasing external and internal challenges. China has recognized the need to reform its currency policy and address its structural imbalances, but the progress has been slow and uneven. China has allowed more flexibility in its exchange rate since 2005, but it still intervenes to prevent excessive appreciation or depreciation. China has also taken some steps to rebalance its economy towards consumption and services, but it still relies heavily on exports and investment for growth. China has also implemented some measures to liberalize its financial system and reduce its debt burden, but it still maintains tight controls on interest rates and capital flows.
To achieve a more balanced, green, and inclusive growth, China needs to accelerate its reforms and allow its currency to reflect market forces. This would help China to diversify its sources of growth, reduce its dependence on foreign reserves, improve its resource allocation, and enhance its financial stability. It would also benefit the global economy, as it would reduce trade imbalances, ease trade tensions, and foster international cooperation. However, such reforms are not easy to implement, as they entail significant costs and risks in the short term, and face political and social resistance. China will need to carefully calibrate the pace and sequencing of its reforms, and communicate its policy intentions clearly and credibly to the public and the markets.
I have been thinking about this recently. We saw with Russia what happens to a government's 'foreign reserves'. The ECB stole them all and is even discussing given them to Zelensky! China's $3trillion in foreign reserves could easily end up a $3trillion donation to their biggest enemies in Taiwan.
There is another way to weaken a currency - low interest rates.
With CBDCs replacing cash, china could easily roll out negative interest rates. Seize people's savings and what are they going to do about it? withdraw it into cash that was just replaced?
I heard that China's entire Domestic housing market was worth $70 trillion.
So even if they sell all their US bond holdings it wouldn't cover much of their housing debt. If their economy starts to see a massive shift away from property ownership the slide would be unstoppable.
Many of the smartest Chinese citizens are investing in overseas markets (where even as a foreigner they likely have MORE protection than if they buy an asset in china). To the Chinese citizen investing in Vancouver, they don't even care about a small decline in house prices - because if they keep the assets in china they are risking 100% of it being seized by the government.
You raise some interesting points, but I think they need some clarification. I don't think China's foreign reserves are likely to be seized, as they are mostly held in safe and liquid assets, such as US Treasury bonds. China does not need to sell its US bond holdings to cover its housing debt, as most of its debt is domestic and denominated in renminbi. So it's mostly citizens owing money to the government banks. China's housing market is not quite worth $70 trillion, but rather around $52 trillion - however that valuation is itself contentious. China's currency policy is not only determined by interest rates, but also by exchange rate interventions and capital controls. China has been gradually allowing more flexibility in its exchange rate and opening up its capital account, but it still faces challenges in balancing its external and internal objectives. While some Chinese citizens may definitely prefer to invest overseas, there are also many who are confident in China's economic prospects and legal system (I tried finding a % but it wasn't readily available). China has been slowly improving its property rights protection and financial regulation, as well as promoting domestic consumption and innovation. So I wouldn't assume that all Chinese investors are fleeing the country or risking their assets - remember we're talking about 1.3 Billion people - most of which do not have the liquidity or means to even be holidaying outside the country. But it is something that I think the CCP would be worried about and hence why they have made some small movements towards rectification. However if it will be enough remains to be seen. We live in interesting times. I'd honestly thought WW III would have broken out by now.
I don't think China's foreign reserves are likely to be seized, as they are mostly held in safe and liquid assets, such as US Treasury bonds.
I can't find anything definitive. But I expect that's exactly what the Russian foreign reserves were invested in. (Central banks are all pretty conservative and copy each other.)
I personally wouldn't like to predict how safe these assets would be if a war breaks out and the US congress starts passing legislation.
If I were China, I wouldn't take that risk for 1%(?) interest income that these legacy bonds are paying. Now would be a good time to take profits as US bonds have just rallied on mere expectations that rates will be cut in future.
It's already warping and cracking. If war breaks out between Taiwan and China you can bet that someone is sending a cruise missile or ICBM directly at it.
China is HUGE glass cannon, they can do a lot of damage in a short time frame but that's it. If a war between them and Taiwan lasts half as long as the Ukraine Russia war, they'd implode.
Their economy is run mostly off monopoly money more than the US that runs off guarantee system but unlike the US where they have a proven military force, the Chinese is largely untested and might just break in a real fight. They have lots of 'ghost cities' thanks to their land procurement policies and their population is actually decreasing faster than Japan percentage wise.
Most is tied up in real estate debt, which is why they keep building the ghost towns, as property is the only way to really invest if you're the average Chinese citizen.
Not only homeland real estate, but real estate abroad. If I recall, in Canada, Chinese immigrants have been buying up land in Vancouver for a number of years.
I have seen their videos of high speed rail where the trains are photoshopped in lol. Wouldn't know about their train stuff though, haven't heard anything about it.
Same with California. They've been cooking the books for so long even they don't realize how bad it is. The state and local unfunded pension and other liabilities are over $1.3 trillion.
I'm hoping to be out of here before Newsom goes nuts and starts seizing everything. He's already floated the idea of continuing to tax people that have moved to other states.
You'd think the fifth largest economy in the world would be swimming in cash from all the tech manias and capital gains taxes.
"You and what faggot army?"
If they still have control of DC I'm guessing they'll try to get the IRS to just start lifting it out of your accounts.
If they can succeed in making Trump sell a 1 Billion dollar property for 18 million they're off the leash.
From what I understand, one of China's levers of influence over the US is that they threaten to fuck with the value of the USD because of how much cash they've hoovered up over the decades.
If remotely accurate, I'm beginning to wonder how empty this threat really is. This news could potentially give the US some leverage, if they had the balls to take advantage of it.
They didn't hire 80 some thousand armed IRS agents, to just have them sit on their hands.
The US army. Gavin is likely to become president.
Where were the Hunter cases filed? California. He's going to try and take Biden down so he can step in. Kamala will try to scuttle him, since they hate each other.
The wealth taxes and the exit taxes look painful.
They tried to implement this kind of tax in washington state and Jeff Bezos immediately left and took 50% of the wealth tax with him.
If Bill Gates leaves then 100% of the new tax just left…
All they have succeeded in doing is a MASSIVE increase in surveillance - previously they had to monitor your income. Now they have to double that infrastructure to monitor you for other assets. A complete nightmare at tax time…. And its only a matter of time before it is expanded to the middle class.
I'm already concerned that if I visited California for even one day, I'd somehow be stuck with paying California taxes from another state for the rest of my life.
Visiting California will be like a Spec Ops mission in the future. Do not bring your credit cards. Buy only with cash. Do not bring your own cell phone. Use a burner phone purchased with cash. Be picked up by someone with a California license plate at the border, and in a nondescript location. Wear plain clothes and sunglasses or a hat to disguise your identity. Do not eat the local food or drink local water if possible. Limit your exposure to Californian citizens and their discussions or entertainment to 20 minutes per day. Excess exposure can lead to elevated heart rate, high blood pressure, nausea, stroke, aneurysm, and suicidal tendencies.
"Hello, Citizen KekistanPM_$autofillFromForm, you are receiving this bill for $1,294,395.77 for the reason of you transited through Gavin Newsom People's Air Transport Center (formerly LAX) on Second Seventh, KwaHauFest PNE 4 (December 14, 2023). This bill must be paid in its entirety withing 72 hours."
China has been accused of fixing its currency, the renminbi, at an artificially low level for many years. This has given China an unfair advantage in international trade, as it makes its exports cheaper and imports more expensive. However, this policy has also created some structural issues and problems for China's economy, such as:
These structural issues and problems have become more evident and acute in recent years, as China's economy has slowed down and faced increasing external and internal challenges. China has recognized the need to reform its currency policy and address its structural imbalances, but the progress has been slow and uneven. China has allowed more flexibility in its exchange rate since 2005, but it still intervenes to prevent excessive appreciation or depreciation. China has also taken some steps to rebalance its economy towards consumption and services, but it still relies heavily on exports and investment for growth. China has also implemented some measures to liberalize its financial system and reduce its debt burden, but it still maintains tight controls on interest rates and capital flows.
To achieve a more balanced, green, and inclusive growth, China needs to accelerate its reforms and allow its currency to reflect market forces. This would help China to diversify its sources of growth, reduce its dependence on foreign reserves, improve its resource allocation, and enhance its financial stability. It would also benefit the global economy, as it would reduce trade imbalances, ease trade tensions, and foster international cooperation. However, such reforms are not easy to implement, as they entail significant costs and risks in the short term, and face political and social resistance. China will need to carefully calibrate the pace and sequencing of its reforms, and communicate its policy intentions clearly and credibly to the public and the markets.
I have been thinking about this recently. We saw with Russia what happens to a government's 'foreign reserves'. The ECB stole them all and is even discussing given them to Zelensky! China's $3trillion in foreign reserves could easily end up a $3trillion donation to their biggest enemies in Taiwan.
With CBDCs replacing cash, china could easily roll out negative interest rates. Seize people's savings and what are they going to do about it? withdraw it into cash that was just replaced?
I heard that China's entire Domestic housing market was worth $70 trillion.
So even if they sell all their US bond holdings it wouldn't cover much of their housing debt. If their economy starts to see a massive shift away from property ownership the slide would be unstoppable.
Many of the smartest Chinese citizens are investing in overseas markets (where even as a foreigner they likely have MORE protection than if they buy an asset in china). To the Chinese citizen investing in Vancouver, they don't even care about a small decline in house prices - because if they keep the assets in china they are risking 100% of it being seized by the government.
You raise some interesting points, but I think they need some clarification. I don't think China's foreign reserves are likely to be seized, as they are mostly held in safe and liquid assets, such as US Treasury bonds. China does not need to sell its US bond holdings to cover its housing debt, as most of its debt is domestic and denominated in renminbi. So it's mostly citizens owing money to the government banks. China's housing market is not quite worth $70 trillion, but rather around $52 trillion - however that valuation is itself contentious. China's currency policy is not only determined by interest rates, but also by exchange rate interventions and capital controls. China has been gradually allowing more flexibility in its exchange rate and opening up its capital account, but it still faces challenges in balancing its external and internal objectives. While some Chinese citizens may definitely prefer to invest overseas, there are also many who are confident in China's economic prospects and legal system (I tried finding a % but it wasn't readily available). China has been slowly improving its property rights protection and financial regulation, as well as promoting domestic consumption and innovation. So I wouldn't assume that all Chinese investors are fleeing the country or risking their assets - remember we're talking about 1.3 Billion people - most of which do not have the liquidity or means to even be holidaying outside the country. But it is something that I think the CCP would be worried about and hence why they have made some small movements towards rectification. However if it will be enough remains to be seen. We live in interesting times. I'd honestly thought WW III would have broken out by now.
I can't find anything definitive. But I expect that's exactly what the Russian foreign reserves were invested in. (Central banks are all pretty conservative and copy each other.)
https://www.reuters.com/world/europe/russian-central-bank-reserves-what-are-they-made-2022-02-28/
I personally wouldn't like to predict how safe these assets would be if a war breaks out and the US congress starts passing legislation.
If I were China, I wouldn't take that risk for 1%(?) interest income that these legacy bonds are paying. Now would be a good time to take profits as US bonds have just rallied on mere expectations that rates will be cut in future.
Is this just AI generated?
No - I have a eco degree
please burst, three gorges.
It's already warping and cracking. If war breaks out between Taiwan and China you can bet that someone is sending a cruise missile or ICBM directly at it.
China is the land of "fake it till you can get far enough away so that they can't trace back it's collapse to you while you still get the money".
China is HUGE glass cannon, they can do a lot of damage in a short time frame but that's it. If a war between them and Taiwan lasts half as long as the Ukraine Russia war, they'd implode.
Their economy is run mostly off monopoly money more than the US that runs off guarantee system but unlike the US where they have a proven military force, the Chinese is largely untested and might just break in a real fight. They have lots of 'ghost cities' thanks to their land procurement policies and their population is actually decreasing faster than Japan percentage wise.
Real estate debt or railway debt?
Most is tied up in real estate debt, which is why they keep building the ghost towns, as property is the only way to really invest if you're the average Chinese citizen.
Not only homeland real estate, but real estate abroad. If I recall, in Canada, Chinese immigrants have been buying up land in Vancouver for a number of years.
I recently heard that the guy in china in charge of the rail system admitted that the rail system has a debt worse than the real estate market.
I have seen their videos of high speed rail where the trains are photoshopped in lol. Wouldn't know about their train stuff though, haven't heard anything about it.
It is a piece of shit just like the rest of their infrastructure.
https://youtu.be/gMrLr3qAeIM?si=cnqxTuUczFV_3G-e