Hong Kong Monetary Authority boss Norman Chan warns of ‘volatility’ (local euphemism for taboo subject of prices not going up) ahead of possible, theoretical, vaguely conceivable, maybe-in-our-lifetime Federal Reserve interest-rate rises that feed through into the city’s lending rates and asset bubble.
An interesting discussion of Hong Kong’s peculiar role as China’s impossible-trinity miracle zone appears here, ending with the question of where this will lead – abandoning the peg or restricting capital flows? Capital controls would mean Hong Kong goes back to fishing and banana-growing, but scrapping the peg has always been an unspoken emergency push button.
Past experience suggests at least one outcome: the price of 500-sq-ft concrete boxes falls back into line with their function and utility, but the process is dragged out by the panty-wetting government’s frantic Cnut-like struggle to order the laws of economics to reverse themselves – and after years of this wrenching ‘volatility’, with suicide and anguish stalking the streets, we have demolished all subsidized housing and frozen long-term land supply so we can do it all over again.
Some more fun reading…
“…the Chinese public and intellectuals who still harbor illusions about the Communist Party … and the ‘panda huggers’ in the West … are now all at something of a loss…
The economic dividends … from favorable demographics, cheap labor, and globalization have been all but exhausted … The Communist Party already eliminated democratization … from its menu of options for responding to crises. And so all it is left with is strengthening centralized power and enhancing the forces of repression.”
“What path should Chinese officials pursue to stem inevitable decline evidenced in Xi’s overt centralization, a gamble preventing growth because it inhibits self-determination?”
What John Garnaut describes as ‘the most succinct and authoritative account of CCP external security policy’ – China’s interference and influence-building. And more about that interference in the Australian media.
I declare the weekend open with the magnificent phrase ‘thought-leadership limpets’, in an article slamming someone I’ve barely heard of, plus George Washington’s Yelp reviews, which suggest it wasn’t just the false teeth – the guy was really grumpy.