China’s ruling Politburo held an emergency economic meeting and decided to crank up the money printers to 11, pumping money to consumers, to banks, to property developers, basically to anybody who might spend it.
China is going pear-shaped as Beijing panics and wheels out the "Monetary bazooka." Cue the Worldwide inflation.
Just a few weeks ago I did a video about how China is on the edge of recession.
So What Happened? Last week, China's ruling Politburo held an emergency economic meeting and decided to crank up the money printers to 11, pumping money to consumers, to banks, to property developers, basically to anybody who might spend it.
A trillion yuan goes to consumer subsidies, including a hundred twenty US per month child subsidy - a hundred twenty's big in China - to bribe Chinese mothers into having more kids, which they've stopped doing.
Beyond the Money Dump Beyond the money dump, China's slashing interest rates across the board - which governments do to try and gin up some tissue-fire growth.
What Scares China Why so desperate, you might ask? Easy: China is panicked not only about a looming recession but that it might be falling into the Japan-style doom-loop of structural stagnation thanks to President Xi's anti-business jihad. The key number here is the interest rate on 30-year government bonds, which is a classic indicator of a zombie economy in the spawning.
China's Turn for Chaos I've mentioned in previous articles how if China goes down, the Chinese people won't have a sense of humor about it.
https://brownstone.org/articles/china-enters-the-economic-doom-loop/
No comments:
Post a Comment