Comments by "Vale Tudo" (@valetudo1569) on "Potential Japanification of China? UBS says the situation is 'completely different'" video.

  1. Hmm this gentleman is painting things in a bit of a positive light for China and negative for Japan. In regards to China - much of the rural community is older and full of men.. the young people mostly migrate the already urbanized areas.. hence why the birthrate is so low - most of the young are already urbanized. In addition, the rural population doesn't have the education or resources for urbanization to actually be a productive investment...it would yield a negative ROI. You only need to ask yourself why they haven't been doing this for the past 10 years (urbanizing the rural areas) if it was such a clear option. The reason you aren't seeing stimulus as in 2008 and 2015 is because their debt to GDP ratio is 2.5x... to put it mildy - they don't have the debt capacity to do so, and don't have many avenues where it would produce a positive ROI (since they insist on supply-side stimulus instead of demand-side). In regards to Japan - what he seems to pain as a negative of Japan already being urbanized, many would say that Japan was already wealthy when their bubble popped and didn't have negative population growth until 20 years later. China is much less developed, and much older than Japan was at this stage. Japan got rich before it got old, China will get old before it gets rich...is another way to look at the points the man made.
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  2.  @Sit-bc9uw  Thank you!
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