CONTACT CAROLINE
facebook
rss
tumblr
twitter
goodreads
youtube

  • Home
  • Write Away Blog
  • Books
    • Books
    • Trompe l’Oeil
    • Heart Land
    • Gothic Spring
    • Ballet Noir
    • Book Excerpts
  • Video Interviews
  • Press
    • News
    • Print Interviews
    • Plays
    • Ballet Noir in the Press
    • Trompe l’Oeil In The Press
    • Gothic Spring In The Press
    • Heart Land Reviews
  • Contact
  • About
  • Resources
    • Writer Resources
    • Favorite Blogs
    • Favorite Artists



China: Waiting For The Hiccup

Feb 10, 2016
by Caroline Miller
China, China's Capital Flight, George Soros, Monetary Fund, Peter Coy
0 Comment

As I wrote in a recent blog, one of the big worries in the US stock market is the fallen price of oil. (Blog 1/16/16)  The second worry is China, our trading partner.  When that nation hiccups, investors here pay attention.

At the moment the country poses a two-pronged worry.  First, many of China’s investors are new to capitalism and tend to speculate rather than study industries. The trend at the moment is to follow market manipulators (Zhuang Jai) and attempt to buy or sell ahead of them.  Of course, they can’t and so the market swings, “like a wrecking ball on a pendulum,” to borrow billionaire George Soros’ description. (“China’s Capital Flight,” by Peter Coy, Bloomberg Businessweek, Jan 18-24, 2016, pg. 11)  When values drop precipitously,  China’s government steps in and freezes trading for a time.  Too much government control discourages global investors and  money flows out of the market even though the country’s real economy is growing, though less rapidly than in the past. (“How Investors Learn to Dance with Wolves,” Bloomberg Businessweek,  Jan 11-17, 2016, pg. 37.) 

The second prong is uncertainty.  No one knows which way China is going to jump in its slowing ecoomy. Will it continue to embrace capitalism or will its fear of economic fluctuations cause the country to cut off foreign investment as it did in the past?  Recently, Chinas’ currency, the yuan, was allowed to float in the International Monetary Fund, a basket of reserve currencies, along with the dollar, pound, euro and yen. To be a player, China had to lower some of its foreign investment barriers.  That decision made it easier for money to flow in and out of the country.  At the moment, much of its trade surplus is flowing out.  How long China will allow its assets to bleed is the question. (“China’s Capital Flight,” by Peter Coy, Bloomberg Business Week, Jan 18-24,  pg. 11. ) 

Uncertainty is the enemy of the stock market.  While China may seem far away, it lives in our retirement funds, in 401ks and IRAs.  It lives in the American jobs that prosper with China’s growing economy.  We exist in a world governed by entanglements, just like the quantum one.  A hiccup in China can be heard around the world. 

Panda Bear

Courtesy of cagle.com

 

Social Share

Leave a Reply Cancel reply

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Contact Caroline at

carolinemiller11@yahoo.com

Portland, Oregon author Caroline Miller had distinguished careers as an educator, union president, elected official and artist/advocate.

Her play, Woman on the Scarlet Beast, was performed at the Post5 Theatre, Portland, OR, January/February 2015

Caroline published a serialized novelette, Marie Eau-Claire, on the website, The Colored Lens.  She also published the story Gustav Pavel,  a parable about ordinary lives, choice and alternate potential, on the website Fixional.co.

Caroline has published four novels

  • Ballet Noir
  • Trompe l’Oeil
  • Gothic Spring
  • Heart Land

Subscribe to Caroline’s Blog


 

Archives

Categories

YouTube-logo-inline2 To access and subscribe to my videos on YouTube, Click Here and click the Subscribe button.

Banner art “The Receptive” by Charlie White of Charlie White Studio

Web Admin: ThinPATH Systems, Inc
support@tp-sys.com

Subscribe to Caroline's Blog


 

Contact Caroline at

carolinemiller11@yahoo.com

Sitemap | Privacy Notice

AUDIO & VIDEO VAULT

View archives of Caroline’s audio and videos interviews.


Copyright © Books by Caroline Miller
Posting....