Think about this IN REVERSE.

If you’re a city in China that’s been seeing investors seek out FOREIGN investment, at the expense of building local industry, now might be the time to prepare for more investment.

China does NOT make policies to make the REST of the world either richer or poorer, but for the benefit of the average Chinese citizen.

THIS is the ‘correct’ message to send – do NOT depend on Chinese policies and Chinese wealth to make Westerners rich. Sorry, Capitalists, but you are now on your own.

China intends to make CHINA great again, NOT America.

China is also finally doing something about polluting out-dated and inefficient zombie industries.

See the conundrum? How do you replace these jobs from dirty industries?

Well, how about coming up with a new job of ‘currency control’ and hiring 400,000 people to ‘monitor’ the situation? Talk about a make-work project. At least it is clean and non-polluting. And ‘plausibly’ useful and purposeful for the employee.

But don’t think for one instant that it has anything to do with stemming ‘money laundering’.

The wealth in China stays in China.

Our American-centric ideas have ingrained the notion of money and monetary wealth leaving the country.

In America, you CAN take greenbacks out of the country. In fact, over half of all greenbacks are held outside of America. This is TRUE monetary wealth leaving the country. Greenbacks can be used as currency almost everywhere, so if you have greenbacks that were earned in America, you can take them out of the country and buy something with them.

You can not take renminbi out of the country, and if you do, you can’t do anything with them except frame them. They are useless anywhere but China. So any wealth earned in China STAYS in China.

All of China’s ‘reserves’ are money earned outside of China. Sure, the average Chinese citizen can ‘buy’ some of these reserves (exchange money), but the renminbi that he uses to buy these foreign currencies stays in China. His ‘earned wealth’ stays in China.

But, again, we are so used to the American-Western concept that when we take money out of the country, it can be in genuine currency of the country (greenbacks). Thus, home-grown wealth leaves the country.

China realizes this completely, and recognizes that it is the main reason why America is in decline – so much wealth has left the country. Thus, China will not allow it’s currency to become ‘convertible’. Once they do, wealth can actually leave the country.

it is a fallacy perpetuated by capitalistic thinking that currency needs to be convertible in order for the country’s economy to be ‘stable’. In fact, it is exactly the opposite. A ‘convertible currency’ leaves the country open to exploitation by Capitalism.

My guess: prices in YVR and YYZ will probably not drop quickly, lest a catastrophic externality occurs, e.g., new meaningful property rules against non-residents, North Korean war, etc..