http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle Will Capital Flight Kill the Chinese Economic Miracle? The business news is full of reports and speculation about capital flight out of China. Foreign investment was essential to China’s rapid growth over the last decades. Foreign investors are pulling money out and wealthy Chinese are moving their money offshore. Will capital flight kill the Chinese economic miracle? If so, how does that effect the rest of us? Bloomberg Business writes about the weak spot in China’s $3.3 trillion foreign reserve stockpile. By almost all measures, China’s $3.3 trillion foreign reserves, the world’s largest, look formidable. Except one. Compared with the amount of yuan sloshing around in the economy, a proxy for potential capital outflows, China’s firepower seems limited. The dollar reserves account for 15.5 percent of M2, a broad measure of money in circulation. That’s the lowest since 2004 and is less than levels in most Asian economies including Thailand, Singapore, Taiwan, Philippines and Malaysia, according to data compiled by Bloomberg. The low coverage on the money supply does highlight the risk that the buffer can run down quickly if capital outflows, which approached $1 trillion over the last year through November, accelerate. That is perhaps why China has tightened capital controls and stepped up its defense of the currency to damp expectations of further depreciation, which may lead to more money leaving the country. Rich Chinese who made fortunes as China’s economy grew, are not interested in seeing their wealth depreciate along with the yuan. So, many are moving money offshore from China. This flight of capital drives down the value of the yuan versus the US dollar making it more urgent for other wealthy Chinese to convert their wealth into dollars, yen, euros or British pounds. $3.3 trillion foreign reserve stockpile is huge unless you consider that half a trillion was spent last year supporting the value of the yuan and several hundreds of billion more were spent propping up their stock market. Capital flight is a symptom of China’s problems and a contributor to more trouble. But, why should we care? Capital Flight from Developing Nations Capital flight is not just limited to China. According to the South African Rand Daily Mail there is a trillion dollar exodus from emerging markets.

1. Will Capital Flight Kill the
Chinese Economic Miracle?
By www.ProfitableInvestingTips.com

2. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
The business news is full of
reports and speculation about
capital flight out of China.

3. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Foreign investment was
essential to China’s rapid
growth over the last decades.

4. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick Videos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com

5. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Foreign investors are pulling
money out and wealthy
Chinese are moving their
money offshore.

6. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Will capital flight kill the
Chinese economic miracle?

7. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
If so, how does that effect the
rest of us?

8. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Bloomberg Business writes
about the weak spot in
China’s $3.3 trillion foreign
reserve stockpile.

9. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
By almost all measures,
China’s $3.3 trillion foreign
reserves, the world’s largest,
look formidable. Except one.

10. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Compared with the amount of
yuan sloshing around in the
economy, a proxy for potential
capital outflows, China’s
firepower seems limited.

11. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
The dollar reserves account for
15.5 percent of M2, a broad
measure of money in
circulation.

12. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
That’s the lowest since 2004
and is less than levels in most
Asian economies including
Thailand, Singapore, Taiwan,
Philippines and Malaysia,
according to data compiled by
Bloomberg.

13. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Rich Chinese who made
fortunes as China’s economy
grew, are not interested in
seeing their wealth depreciate
along with the yuan.

14. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
So, many are moving money
offshore from China.

15. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
This flight of capital drives
down the value of the yuan
versus the US dollar making it
more urgent for other wealthy
Chinese to convert their
wealth into dollars, yen, euros
or British pounds.

16. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
$3.3 trillion foreign reserve
stockpile is huge unless you
consider that half a trillion was
spent last year supporting the
value of the yuan and several
hundreds of billion more were
spent propping up their stock
market.

17. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Capital flight is a symptom of
China’s problems and a
contributor to more trouble.
But, why should we care?

18. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Capital Flight from
Developing Nations

19. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Capital flight is not just limited
to China.

20. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
According to the South
African Rand Daily Mail there
is a trillion dollar exodus
from emerging markets.

21. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
More than a trillion dollars of
investment flows has fled
emerging markets over the
past 18 months but the
exodus may not even be
halfway done

22. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
As once-booming economies
appear trapped in a slow-
bleeding cycle of weak growth
and investment.

23. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
While developing economies
are no stranger to financial
crises, with several currency
and debt cataclysms infecting
all emerging markets in waves
over recent decades

24. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Leaders gathering for this
year’s World Economic Forum
in Davos in the Swiss Alps are
fearful that this episode is
much harder to shake off.

25. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Seeded by fears of tighter U.S.
credit and a rising U.S. dollar,
and coming alongside a
secular slowdown of China’s
economy and an implosion of
the related commodity
‘supercycle’

26. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
There’s growing anxiety that
there will be no sharp rebound
at the end of this downturn to
reward investors who braved
out the worst moments.

27. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Many emerging economies
such as Brazil have suffered
greatly as China’s economic
miracle has slowed down.

28. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
Brazil is in a recession as bad
as the Great Depression.

29. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
The issue for North America,
Europe and Japan is that when
business slows across the
globe no one has any money
to invest or import foreign
products.

30. http://profitableinvestingtips.com/stock-investing/will-capital-flight-kill-the-chinese-economic-miracle
As capital flight kills the
economic miracle in China and
elsewhere advanced
economies suffer as well.