brazil reduces oil production plans

[GRG55]

Re: brazil reduces oil production plans

Maybe we've reached a point where people can't pay it. (though the maybe was passed some time ago. In our debt-driven economy, our hall of mirrors are our own reflection of the Chinese ghost cities.)

You say "our debt driven economy". Is there any important economy out there that isn't?

A debt that cannot be repaid that was incurred to educate or train someone is a far better national circumstance than a debt that cannot be repaid that was incurred to build a ghost city. The educated former is likely to contribute to the national well being, the BRICS and mortar latter cannot under any circumstance, and in sufficient quantity is a national liability.

The USA economy in aggregate is doing better than many wish to recognize or accept. Despite the efforts of the politicians and career snivel servants, it remains the most innovative, most creative, most entrepreneurial and most diversified economy in the world. The ability to raise capital, try an idea, fail, and still be able to try again is almost unique to the USA alone.

[don]

Re: brazil reduces oil production plans

Student loan debt is one of the few channels the government has used to create continuous credit growth as the crisis engulfed the ABS issuance market.

You're absolutely right, Prodigy. Well said. Student loans are a recent innovation to prop up both the debt-based economy as well as keeping-the-lid-on welfare state subsidies.

[ProdigyofZen]

Re: brazil reduces oil production plans

iron law that whatever is cheap is not respected -

Why we hate cheap things.

At one time the Pineapple was so revered that the architect Christopher Wren topped the south tower of St Paul's with this evidently divine fruit.

[GRG55]

Re: brazil reduces oil production plans

why not a military build up instead?

Always a possibility.

The preoccupation in Beijing will be internal: Maintaining their grip on power and minimizing social instability caused by growth rates well below the credit and FDI driven "miracle" the nation has become accustomed to.

If blaming foreigners, sabre rattling and funding increases to China's own armed forces (as compared to arms exports) serve those ends then we should expect them.

[Polish_Silver]

Ever more debt?

You say "our debt driven economy". Is there any important economy out there that isn't?

.

What ever example I bring up will be considered "an unimportant economy".

The right question is, would an economy with lower debt levels
be better for the public, and has any government ever achieved that ?

Well, yes, and yes. The USA has not always had such high debt to income levels.

Amazingly, the economy grew even with low debt levels and a high personal savings rate!

There are countries (Taiwan) where the private savings rate is high.

There are others which regularly run public sector surpluses (Honk Kong) and others which have negligible national debt (Singapore).

We are so used to ever more debt that people accept it, and believe it is inevitable.

[ProdigyofZen]

Re: brazil reduces oil production plans

Hail Mao save?

Clever!

The Yellow BRIC road is a dead end.

Even more clever! I shall make this the title of a research piece!

[jk]

Re: brazil reduces oil production plans

Clever!



Even more clever! I shall make this the title of a research piece!

careful. could be interpreted as rascist.

[ProdigyofZen]

Re: brazil reduces oil production plans

Hah!

[lektrode]

Re: brazil reduces oil production plans

...At one time the Pineapple was so revered that the architect Christopher Wren topped the south tower of St Paul's with this evidently divine fruit.

guess its kind of an indicator in an odd sort of way - how pineapple got to be so revered - esp in a place where so much rode on its success - where now most of the producers are now real estate ops, with what was once the biggest of them all, now a tourist attraction/shopping mall

[touchring]

Re: Ever more debt?

delete

[touchring]

Re: brazil reduces oil production plans

I believe you may well be absolutely correct PoZ.

It's been years in the making, but not difficult to see its inevitability. Can the PBOC make another Hail Mao save? Possible, but would not appear probable. The Yellow BRIC road is a dead end.

I'm not so sure about that. My preference is for a stronger West to act as a countermeasure to the autocratic yellow capitalism, or whatever it is called.

The primary mistake that people make about the Chinese Dragon is that Chinese = China. The fact is that ethnic Chinese control the economies of resource rich South East Asia, from Burma to Thailand to Indonesia to Cambodia to Malaysia. These ethnic Chinese millionaires and billionaires were the earliest investors in China along with people from Taiwan and Hong Kong.

South East Asia cannot be underestimated. Pearl Harbor happened because of South East Asia. The British and Dutch fought wars over control of the region.

The ethnic Chinese in South East Asia have gone through economic calamities more severe than what is happening in China today, including racial purges, e.g. Indonesia during and post-Suharto, and catastrophic financial meltdowns, e.g. Thailand and Indonesia in 1997, but they still survive and are more successful than before.

The challenges that China faces today is trivial is comparison.

[GRG55]

Re: brazil reduces oil production plans

I'm not so sure about that. My preference is for a stronger West to act as a countermeasure to the autocratic yellow capitalism, or whatever it is called.

The primary mistake that people make about the Chinese Dragon is that Chinese = China. The fact is that ethnic Chinese control the economies of resource rich South East Asia, from Burma to Thailand to Indonesia to Cambodia to Malaysia. These ethnic Chinese millionaires and billionaires were the earliest investors in China along with people from Taiwan and Hong Kong.

South East Asia cannot be underestimated. Pearl Harbor happened because of South East Asia. The British and Dutch fought wars over control of the region.

The ethnic Chinese in South East Asia have gone through economic calamities more severe than what is happening in China today, including racial purges, e.g. Indonesia during and post-Suharto, and catastrophic financial meltdowns, e.g. Thailand and Indonesia in 1997, but they still survive and are more successful than before.

The challenges that China faces today is trivial is comparison.

The extent of the challenge is not what matters. Indonesia could be sufficiently challenged as to sink into the ocean and the rest of the world would hardly notice. Not so with China. And it is China that matters, not Chinese. Time will tell if the challenges facing China are indeed "trivial", as you suggest. I have my doubts...

[touchring]

Re: brazil reduces oil production plans

The extent of the challenge is not what matters. Indonesia could be sufficiently challenged as to sink into the ocean and the rest of the world would hardly notice. Not so with China. And it is China that matters, not Chinese. Time will tell if the challenges facing China are indeed "trivial", as you suggest. I have my doubts...

If you're referring to how China will affect the world, then it probably maybe non-trivial, especially the effect on commodity exporters.

[GRG55]

Re: brazil reduces oil production plans

If you're referring to how China will affect the world, then it probably maybe non-trivial, especially the effect on commodity exporters.

The fraud and nonsense of "7% growth" is being exposed. What remains to be seen is if the authorities are willing to continue enduring the pain of restructuring the Chinese economy, or will they once again blink, open the credit spigots to the SOEs and try to keep the old game going a while longer/

[ProdigyofZen]

Re: brazil reduces oil production plans

The fraud and nonsense of "7% growth" is being exposed. What remains to be seen is if the authorities are willing to continue enduring the pain of restructuring the Chinese economy, or will they once again blink, open the credit spigots to the SOEs and try to keep the old game going a while longer/

They can't open the credit spigots anymore. That's the problem.

I am already hearing from Chinese associates in SE Asian countries that they have cut spending, "no more large family dinners or vacations."

What do you think that does to those economies?