but China, without the benefit of having the global de facto currency, is incapable of providing that level of liquidity. i believe i have repeatedly said that that the US---with the benefit of having the de facto global currency---is the only one that is capable of generating the level of liquidity for QE. by comparision all attempts by other economies has been half-azzed. having the de facto global currency enable the us to generate the level of addition liquidty sufficent to support a full-scal QE
on the heels of these problematic economic developments , China's stubbornish continues, kicking the economic can (negative domestic demand) down the road, hoping for a different result. China Rejects $1 Trillion Housing Rescue Plan Pitched by IMF, dealing a blow to hopes for more forceful support to an industry that’s been a major drag on the economy.
This is the part of the business cycle where you export all your industry to a rival who will make the goods for less with your IP and management teams. https://www.economist.com/business/2024/08/08/chinas-manufacturers-are-going-broke China’s manufacturers are going broke Overcapacity is leading to soaring bankruptcies
even that is not working. hot off the press; PDD Holdings stock plummets over 30% on Q2 revenue miss PDD is the parent of temu, China's Amazon
It is willful stupid to debate with someone who can't look up a wiki while making grandiose claims and predictions. Is this "helicopter drop" the QE you claim the US ran during the Great Depression or uhh a different QE? ur willfull smart!
another cut n paste job by Invisible; at least this time he gives credit to his source QE was first implemented under FDR, in the 1930s, it was referred to as "credit facility" and some other descriptions, such as "increasing the monetary base", effectively a continuous injection of liquidity (by the Fed) into the economy until the desired economic resutls were achieved. in 1969, Friedman's alternative proposal was the money drop should be a one-time event. the money drop during FDR/Bush43/Obama were essentially a permanent money drop program until the desired economic goals were achieved. the QE programs implemented by UK/Japan/China, are not one-time events; but (due to a lack of liquidity) they're as permanent as the ones implemented by the US your lack of economic nuance / history manifests itself. let's move it to the QE thread, https://bbs.clutchfans.net/threads/to-the-qe-critics-out-there.316011/
for the education of invisible, here is a graphical depiction of the US monetary base, M2, as it had started to lift off in the 1930s , or as the critics of QE would have you to believe, exploding the Fed's balance sheet, rofmao
The chinese word for crisis is 危 机. In ancient Chinese philosophy, opportunities often arise from crisis. It is being played out in China's currrent challenging economic landscape. Emerging economic crises in China include, but not limited to the following: China is trying to end its ‘epic’ property crisis. The hard work is just beginning an outgrowth of these economics crises has been the Chinese Gen Z / millennials are increasingly migrating from cities to rural areas. Factors contrubuting to this emerging trend include: Younger Chinese are prioritizing work-life balance over financial reward, and the countryside offers an affordable alternative to traditional city jobs. China's youth unemployment crisis has led many to leave cities for the countryside, including farming. Digital nomad enclaves have been springing up in rural China, with the biggest hubs in Anji County, Zhejiang, close Some young people are leaving their jobs in big cities to pursue dreams of being rural influencers. Some young people are transforming rural areas, such as turning abandoned homes into a luxury resort, or reviving heritage crafts
A vivid eg has been Deep Blue Café built at abandoned quarry pit---over-looking this scenic view---that attracts over 400,000 visitors a year
Fed doesn't directly contribute to M2 through QE because it's still up to the banks to increase money supply. Helicopter Drops directly add into M2. QE does not. Are you still going to insist they are the same while nagging others of their ignorance? This is why replying to you is a waste of brain cells. You don't educate yourself and replying back is like stepping on dogshit.
It's a nice ruse to insult others to make them do research for you, but you gotta behoove yourself to earn the skills to find English speaking friends other than Oxford and Webster.
After a series of half-azzed measures---kicking the can down the road--- China's central bank unveils most aggressive stimulus since pandemic The broader-than-expected package offering more funding and interest rate cuts marks the latest attempt by policymakers to restore confidence in the world's second-largest economy after a slew of disappointing data raised concerns of a prolonged structural slowdown. But analysts questioned how productive the People's Bank of China's liquidity injections would be, given extremely weak credit demand from businesses and consumers, and noted the absence of any policies aimed at supporting real economic activity. if any economy is need of a QE, it'd be the Chinese economy. unlike the US, whose currency is the de facto global reserve which is used to settle > 60% of global commercial transactions, China doesn't have the liquidity to implement a QE injection.
Another HIGH hurdle for the Chinese economy to clear, Biden proposes banning Chinese vehicles, 'connected car' technology from US roads
imho. tho not as far-reaching as QE, this massive adrenaline shot will help to mitigate China's mounting economic ills property market crisis, consumer price weakness and rising global trade tensions. this will buy some time for China’s economy---sitting dangerously close to a deflationary cycle--- and help change the narrative around the slump. The world's #2 economy needs 3 or 4 more of this economic adrenaline shot.
I have only scanned this thread not dug in. Was wondering, how a Chinese deflationary cycle would affect the USA economy during that time. My level of financial acumen begins with my bills and ends with my 401K. Thanks for any info.
my understanding is as follows: Chinese demand for US-made goods (iPhones, Starbucks, McDonalds, Beauty supplies, household goods, clorox, coca cola, etc) continues to decline, adversely affecting the global demand for them.
This thread was created one year ago, how much longer will we wait until Chinese economy implode? Or will this be like the Gordon Chang predictions?
