I just read this article and my crystal ball is cloudy now.
Is capital flight from China going to bring more Chinese money to USA? But a strong dollar would be less affordable to foreigners. And I also read elsewere that FDI in US has been on a downward trend since Trump was elected
Worried About Turkey’s Economic Problems? China’s Could Be Worse
The fate of the world economy depends on how China negotiates a weakening currency and capital flight.
Where will the Chinese money go? An American friend of mine wanted to buy a new condo in Bangkok. Over there they sell preconstuctiom and foreigners can only own 49% of the units. The Chinese have bought all the foreigner allotments already, years before delivery. Apparently Chinese buyers are snapping up properties in Cambodia and Malaysia as well.
I think the recession will occur because of normal rise of interest rates and over investment in certain areas.
The corporate and commercial RE looks like they have higher than average debt than prior to previous recessions. A good proportion of commercial RE loans are interest only and are 5/7 years, so when they refinance, the higher rates will impact the values and $ amount that can borrowed.
At the moment, no. The market doesn’t see deficit spending as impacting long term interest rates. So it’s unlikely deficit spending will cause a recession.
Deficit hawkishness, especially after 2008, was years premature and retarded economic growth. We’d be richer today, with a larger GPD, had it not been for misguided notions of deficit spending.
The trade wars with China and other countries are about to get ugly.
As Trump’s problems mount, he’s going to unleash hate and resentment among his base.
The policies have lagging effects on the economy, but eventually we will live with the consequences.
I need to know because I’m planning to buy a muilti-unit property next bottom. Then I’ll be OK for retirement overseas.
I’m retiring somewhere in South East Asia so I can enjoy the easy travel on high speed rail that will be available.
Watch this American in China. High speed rail is so nice!
