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23-09-2021, 11:22 AM
#9641
Originally Posted by Balance
The rich gets ever richer and the poor gets ever more marginalised.
Not much one can do but to take care of one’s own.
What u say is true and that has its own terrible repercussions ...to which Chinese CCP has woken up and trying to placate poor . They of all fully know the power of poor people rising . Poor need to be included in some sort of development hope to keep them in control .
NZ example of poor rising is our Gangs and their untouchability already by any authority ....Covid rules for them not or wont be enforced ...Wanaka couple or individual rule breakers will be prosecuted ...thats the power of poor coming together .
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23-09-2021, 11:27 AM
#9642
Isn't inflation a tax on the rich? Or tax on their cash? Tax on corporations holding cash.
If you are on the lower end of the pay scale your wage will follow the minimum wage which will follow inflation. So if you live paycheck to paycheck a 3% inflation rate shouldnt be a worry.
But if you are a billionaire or Apple/Google and have tons of cash in bank accounts earning 0.5% then you getting taxed 2.5% to help the rest of the world pay their debts.
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23-09-2021, 11:39 AM
#9643
Originally Posted by Rawz
Isn't inflation a tax on the rich? Or tax on their cash? Tax on corporations holding cash.
If you are on the lower end of the pay scale your wage will follow the minimum wage which will follow inflation. So if you live paycheck to paycheck a 3% inflation rate shouldnt be a worry.
But if you are a billionaire or Apple/Google and have tons of cash in bank accounts earning 0.5% then you getting taxed 2.5% to help the rest of the world pay their debts.
Minimum wage only follows inflation if the govt of the day wants it to. Which often they do not. And I suspect the average billionaire keeps very little cash (proportionately) in a savings account.
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23-09-2021, 11:45 AM
#9644
Originally Posted by mondograss
Minimum wage only follows inflation if the govt of the day wants it to. Which often they do not. And I suspect the average billionaire keeps very little cash (proportionately) in a savings account.
Google tells me there is $6.6 trillion US$ CASH in the world. That's the cash I'm talking about that will be taxed by inflation. Even my high growth kiwisaver option sometimes has cash. Everyone pays a bit I guess
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23-09-2021, 11:59 AM
#9645
Originally Posted by Rawz
Isn't inflation a tax on the rich? Or tax on their cash? Tax on corporations holding cash.
If you are on the lower end of the pay scale your wage will follow the minimum wage which will follow inflation. So if you live paycheck to paycheck a 3% inflation rate shouldnt be a worry.
But if you are a billionaire or Apple/Google and have tons of cash in bank accounts earning 0.5% then you getting taxed 2.5% to help the rest of the world pay their debts.
The rich can invest in inflation proofing their money.
The poor cannot keep up with inflation driving up costs, especially housing.
Sad state of affairs.
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23-09-2021, 12:13 PM
#9646
Originally Posted by Balance
The rich can invest in inflation proofing their money.
The poor cannot keep up with inflation driving up costs, especially housing.
Sad state of affairs.
Very sad.
I can only hope that many here realise how they've been favoured and give back (via charity etc) if they have the means.
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23-09-2021, 03:13 PM
#9647
Member
Originally Posted by alokdhir
Every time a mistake catches up with any central bank ...they just throw more money at it...
They have that option because China has been producing far more than they consume which keeps global interests rates unusually low. However I do not believe that scenario will persist much longer, you'll see Chinese consumption increase as they enter this next phase of economic development and Chinese productivity will fall as it's workforce rapidly ages.
Last edited by Tomtom; 23-09-2021 at 03:15 PM.
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23-09-2021, 03:29 PM
#9648
Interesting, but plenty of automation this decade which is also deflationary
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23-09-2021, 03:34 PM
#9649
Originally Posted by Tomtom
They have that option because China has been producing far more than they consume which keeps global interests rates unusually low. However I do not believe that scenario will persist much longer, you'll see Chinese consumption increase as they enter this next phase of economic development and Chinese productivity will fall as it's workforce rapidly ages.
However half of the american economy is also broken particuarly in the southern states.
California has to carry and lift up the corpse of their conservatism.
Last edited by Panda-NZ-; 23-09-2021 at 06:31 PM.
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23-09-2021, 06:13 PM
#9650
Originally Posted by Balance
https://www.nzherald.co.nz/business/...ARTMKJ3WO4KPU/
paywalled
"Unless China's regulators seriously mismanage the situation, a systemic crisis in the country's financial sector is not on the cards," says He Wei, an analyst at Gavekal, a research company.
Indeed, the main cause of Evergrande's crisis and the downturn in the broader property sector is Beijing itself. The "three red lines" that the Xi government announced last year stipulate that developers must keep debt levels within reasonable bounds."
So no need to worry because Xi will act against his own three red lines from last year and save the day?
Surely its as likely a few bankruptcies and fire sales are an intended or at least acceptable consequence of those three red lines?
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