source(english): https://www.principles.com/the-changing-world-order/#chapter6
source:(chinese translate): https://finance.sina.com.cn/china/gncj/2020-09-21/doc-iivhvpwy8038347.shtml
- Dalio is good at introducing China's civilization
- Qin Dynasty united most of the area we now call China for the first time
- Han Dynasty developed governance systems that are still in use today
- Ming Dynasty was a great power that enjoyed an extended wonderful period that was both very prosperous and very peaceful
- in the early 1800s and through the first half of the 1900s, China lost its power while European countries, and especially the British Empire, gained theirs
- "the Chinese government is run from the top down (like a family) and optimizes for the collective while the American approach is run from the bottom up (e.g., democracy) and optimizes for the individual."
- it's a simple understanding, the reality is more complex.
- "as a principle, when you see capital controls being put on a currency, especially when there is a big domestic debt problem, run out of that currency."
- inflation history
- From 1955 to 1971 the exchange rate was fixed at 2.46 to the US dollar.
- From 1972 through the late 1970s, China did a better job of restraining money and credit.
- You can see another round of high inflation from the late 1970s to the early 90s. It was caused by the global devaluation of money against gold in 1971, global inflationary pressures, China phasing out its price controls, easy credit, and lack of spending controls among state-owned enterprises.
- In 1996 convertibility was allowed for current account items but not for the capital account. From 1997 until 2005 the exchange rate to the dollar was kept at 8.3
- "8 measures of power: education, innovation and technology, competitiveness, military, trade, output, financial center, and reserve currency status"
- "The end of World War II in 1945 led to the repatriation of most foreigners in China (except for Hong Kong and Taiwan) and a civil war to determine how the wealth and power would be divided—i.e., a war between the communists or the capitalists—on the Chinese mainland"
- "democratic capitalists"
- it's as funny as "People's capitalists"
- OVER ALL, this article is more objective than most others, though still with stereotypes. I don't know where is the "currency" in the title. Dalio is more telling history.