Self-assessment to China's property appetite

Unfortunately, a lot of phrases and words were too unclear to me and difficult for listening. That's why my report is so small. But I think that I learn these words later and I will be able to understand reports on this topic

China's property appetite

I would like to tell you about new report concerning already well-known Chinese economic problem - property bubbles and factors which cause that.

A lot of investors really are afraid of possibility of a property bubble in China. The Chinese property market is seeing phenomenal boost in prices.


Real estate market in China that is showing signs of recovering from the global property downturn are now in danger of becoming too hot.As fast as China's cities are growing , they are produce more office towers and malls than can be leased for years to come.The Chinese property market is seeing phenomenal growth in prices

Many specialists worry that the demand isn't real and that banks increase the prices.Also they consider that the government should control bank lending and prices and do not let them rise so rapidly.

Self-assessment to Defaulting on Debt

This report was not difficult for listening, because there are a lot of terms known to me. And the subject of this report is very important in economics, so I have not faced to that for the first time.

Defaulting on Debt

I've heard about some predictions about development of the next crisis.

New chapter of the financial crisis. Several countries can default on their governments' bonds.

This problem is likely to be about suffered debts, the bonds which government used to borrow money from investors. As a whole, country's budget deficits become bigger and bigger, so government increasingly needs to sell bonds to fill the funds.

One of the leading economists, Tom Smith, gives the one of the possible predictions about crisis. It is that some nations will be unable to repay investors' money, they will default on their bonds. If a person can buy a bond, he can lend money to government and have interest on this money during fixed period. Quite often government has to borrow more money to repay previous borrowing. Lenders start worrying whether government can repay money. Fact is that higher the level of government's debt the larger amount of money government needs to borrow each year. But there is a point when government can not go on and can not insure the fund.

The President of the Independent Strategy reported about possible consequences of increasing of that. First of all, new crisis, which is called the credit crisis, may be caused by that the large banks lend too much money and consumers borrow too much money. It lets government borrow themselves. So, the initial problem of crisis is too much credits. To reduce the real value of the debt the state has to increase the taxes or create inflation.

So, the consequences may be reflected in unexpected measures of economic policy, devaluation of currency and changes in other key economic indicators.

Self-assessment to China's currency policy

This report was difficult for listening, if it is said about listening of particular phrases. But main idea is clear.

China's currency policy and information overload.(for April)

I'm going to tell you about report from China on its currency policy I've listened to.

According to economic specialists, the most important decision in economy is changing the rate of China's currency, affects not only China's economy, but also other economies, especially economy of USA. That's why, the longest disputes are disputes about attitude of the Chinese currency to the U.S.

Another reason for this is that, as American economists said, China is the one of the greatest country exporting the products of fuel and energy industry, which are very important for other countries, so this product should be cheap for export.

This disputes can bring these countries to falling out. Still remains the question, if China will change its currency. One specialist said:"There is should be cooperation - not confrontation."