Unemployment hasnt moved much in China despite significant layoffs occurring.
In fact looking at the various indicators, deflationary spiral is engaged? They are simply hiding it with cutting rates and boosting spending?
China is basically in 1991 of Japan.
chiefalchemist · 1d ago
> As deflationary pressures mount in the world's second-largest economy, consumer behaviour is changing in ways that could lead to further downward pressure on prices, raising concerns that deflation could become entrenched, posing more headaches for China's policymakers.
And this is why the US Federal Reserve Reserve commits to intentionally providing a persistent level of inflation. That is, assets falling in value (e.g., real estate) undermine the stability of the entire system. Investors don’t invest is assets are going to be worth less.*
The irony is, at the same time worker productivity and overall efficiency should lead to lower prices, and yet they don’t. In fact, as we know, wages haven’t kept pace with inflation.
In short, and pardon me, slightly off topic, the sociopolitical system and the socioeconomic system sit on the same foundation. That is the financial system. Yet so often when the finger pointing breaks out, few point to The Fed. This is foolish, at best.
* note: I’m not saying this is right or wrong. This is simply a simplification of the financial system.
In fact looking at the various indicators, deflationary spiral is engaged? They are simply hiding it with cutting rates and boosting spending?
China is basically in 1991 of Japan.
And this is why the US Federal Reserve Reserve commits to intentionally providing a persistent level of inflation. That is, assets falling in value (e.g., real estate) undermine the stability of the entire system. Investors don’t invest is assets are going to be worth less.*
The irony is, at the same time worker productivity and overall efficiency should lead to lower prices, and yet they don’t. In fact, as we know, wages haven’t kept pace with inflation.
In short, and pardon me, slightly off topic, the sociopolitical system and the socioeconomic system sit on the same foundation. That is the financial system. Yet so often when the finger pointing breaks out, few point to The Fed. This is foolish, at best.
* note: I’m not saying this is right or wrong. This is simply a simplification of the financial system.