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China plans to move 250 million people into new cities September 30, 2013

Posted by hslu in China.
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I would very much like to see how the Chinese government can pull this unprecedented social engineering experiment off. The new leaders of China probably want to try this out in stages starting in one or two new cities at a time so that there won;t be a huge upheaval at the same time.

Social engineering of the nth order!

Social engineering of the nth order!

I have been back to my hometown which is still a small farming village with about 20 families still living there. Many of the next generation have moved away to where the jobs are after they had a chance to finish various levels of education. There are still many who choose to stay. it is difficult to see how they will take this kind of order from the top if they are told to move. I think the younger generation will do it without government’s order because the pay is better and the opportunities are there if they try.

This kind of projects will take tons of money which China can still afford. It will take years if not decades to carry it out. If successful, by no means guaranteed, China will have a chance to move itself out of the middle income trap.

The details are coming out soon. I like to see how they plan to do it.

 

Gold, Renminbi and the Gold Standard September 28, 2013

Posted by hslu in China, Economics, Global Affair, Gold.
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It is rumored that the Chinese government has accumulated more than 7,000 tons of gold since 2009. the central government also encourages Chinese citizens buy gold on the open market. Panda gold coins has been a popular collectors’ item since 1982. Ads like this one are very common at gold and jewelry stores in Shanghai.

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Wouldn’t you like some of those gold pieces on you?

Why the rapid pace of gold purchase on the open market? 

The Bank of China probably doesn’t like what Bernanke has been doing since 2008, I guess.

But, this is the obvious answer.  I wonder that is there a hidden agenda from the Chinese government?

Some reports speculated that the pace of gold purchase will continue and some even linked Renminbi with the gold standard as a way to fight inflation and teach America a lesson.

It is hard to know what the real game is.

Well, just so happens that Chinese has a saying for this situation:

“不知道中国的葫芦里到底卖的是什么药!”

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