what might be some second order effects of banning citizens of economically illiberal nations like china from buying property in the US as a store of value?
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1) china’s economy is dwarfing japan’s - so way bigger scale - and 2) japan’s gov didn’t incentivize holding onto property abroad. japanese economy tanked, ppl needed money and sold. if china tanks, their gov will start stealing, and property abroad will be the only safe asset.
there’s no amount of housing you can build in the US that would make it a less attractive store of value than chinese currency in a chinese bank
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Well, here is some data denominated in the relevant USD figures:pic.twitter.com/vcx8hIHRIK
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And building enough to take away the expectation of appreciation, when combined with a negative yield/holding costs, should destroy its perception as a store of value. The problem is we lack the political willpower to actually build more. Even YIMBY people don't want sprawl.
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