China on brink of deflation as prices plunge

[beijingwalker]

could this be the reason behind the Chinese refugee crisis?

no one goes to China and yet Chinese leave China ?

https://twitter.com/x/status/1647941268662636544

Chinese people go everywhere, most in south east Asia, do you know why most Singaporeans are Chinese origin? America is an immigration country and basically everyone is an immigrant, you are not an immigrant yourself?

 

[aziqbal]

Chinese people go everywhere, most in south east Asia, do you know why most Singaporeans are Chinese origin? America is an immigration country and basically everyone is an immigrant, you are not an immigrant yourself?

yes but Chinese immigrants are entering US ILLEGALLY and yet trolls like you are trolling to say China is better than US?

 

[beijingwalker]

yes but Chinese immigrants are entering US ILLEGALLY and yet trolls like you are trolling to say China is better than US?

Europeans first arrived Americas legally? it's funny they call others illegal. it's a stolen land. legally stolen?

 

[Menthol]

Deflation...

When will I experience it? When the price of goods in my country is getting cheaper day by day.

If deflation is so bad...

No wonder our officials are so happy seeing my life getting harder and harder day by day as the price of goods is getting expensive, and years of saving money is still not enough to buy a house and a car that price is keep rising year by year.

 

[letsrock]

Deflation is not at all bad in a developing country where demand will always be there. Moreover the current spending profile of chinese is massively geared to housing and related interest costs. Moderation will enable them to spend on lifestyle instead.

Also chinese interest rates are nowhere near zero which means they still have room to reduce rates if they want to stimulate the prices.

 

[CIA Mole]

Deflation...

When will I experience it? When the price of goods in my country is getting cheaper day by day.

If deflation is so bad...

No wonder our officials are so happy seeing my life getting harder and harder day by day as the price of goods is getting expensive, and years of saving money is still not enough to buy a house and a car that price is keep rising year by year.

what matters is whats driving deflation

is it market confidence/purchasing power

or is it increasing productivity



2 is good, 1 is bad.

china is 2 cuz no one has confidence in feudalism/communism/terrorism/xi-ism


the chinese are saving up for bad times ahead

 

[dbc]

And again, I did not ask whether you prefer inflation. I ask you whether you prefer to work less if you want to pay less tax. I don't want to change anything from you, and I can't if you won't answer that simple question to begin with.

How hard is it to answer that question and why would you dodge it for 5 posts straight without just giving me a straight answer?

I can ask anyone else, @dbc @gambit @That Guy @Mista , I doubt they will hold up this simple question like you do.

I think you’re wasting your time on him. He doesn’t even know deflation results in pay cuts and rising unemployment. He thinks deflation means work less earn more…lmao.

 

[Skull and Bones]

Deflation is not at all bad in a developing country where demand will always be there. Moreover the current spending profile of chinese is massively geared to housing and related interest costs. Moderation will enable them to spend on lifestyle instead.

Also chinese interest rates are nowhere near zero which means they still have room to reduce rates if they want to stimulate the prices.

If there is demand, then it’s an inflationary system. WTF is going on in this thread?

Price of an item goes down when people cannot afford to or intend to buy that item at its current price.

 

[ziaulislam]

As I said before China biggest problem is; as jack ma put it... population collapse

It hasn't happened yet but unless drastic changes are done it will happen
China needs to increase it's birth rate within next 5-10 years

It needs an average fertility rate of 1.5-2 from current 1.3

That's a tough task if China keeps on clamping on minorities and rural areas where you would expect population can still rebound

USA fertility rate is 1.6 but it has immigration to counter that

 

[Skull and Bones]

As I said before China biggest problem is; as jack ma put it... population collapse

It hasn't happened yet but unless drastic changes are done it will happen
China needs to increase it's birth rate within next 5-10 years

It needs an average fertility rate of 1.5-2 from current 1.3

That's a tough task if China keeps on clamping on minorities and rural areas where you would expect population can still rebound

USA fertility rate is 1.6 but it has immigration to counter that

Ramping up fertility in a time frame as short as 5 years is beyond impossible, specially after the population has settled in a comfortable financial and societal stability.

 

[CIA Mole]

As I said before China biggest problem is; as jack ma put it... population collapse

It hasn't happened yet but unless drastic changes are done it will happen
China needs to increase it's birth rate within next 5-10 years

It needs an average fertility rate of 1.5-2 from current 1.3

That's a tough task if China keeps on clamping on minorities and rural areas where you would expect population can still rebound

USA fertility rate is 1.6 but it has immigration to counter that

Ramping up fertility in a time frame as short as 5 years is beyond impossible, specially after the population has settled in a comfortable financial and societal stability.

population collapse is cuz no one sees hope in a terrorist/feudal/xi-centric future

 

[Communism]

The 90% of the forum that are CIA/Indian (Same labor pool) trolls sure love concern trolling the fastest growing economy in the world in real terms.


Lie about absolutely everything and then try to project your lies onto reality and then get mad when reality doesn't fit your make-believe narratives.


The "deflation" is simply the excising out of the economy of the fake gdp caused by the urban residential real estate ponzi scheme unwinding.


This is 100% a positive and not a negative, as that wasted capital and labor can now be redirected to actually productive pursuits now, like the extremely fast renewable additions to the grid without disrupting the stable rate of inflation.


Fertility rate decrease was due to education inefficiency, and will be reformed by reducing K-12 to K-10.


Fertility rate decrease was also due to the urban residential real estate ponzi scheme, which is in the process of being corrected right now.


Fertility rate decrease was also due to for profit private cram schools, which have been abolished.


Fertility rate decrease was also due to unaffordable childcare, which can easily be fixed now that labor has been freed up from non-productive pursuits, like urban residential real estate ponzi schemes.


Fertility rate can further be increased through incentives, which the lack of inflation allows for without significantly increasing inflation.


Fertility rate can further be increased through getting rid of loansharks with infinite rehypothecated capital with risks synthetically dumped onto the state banks, like Ant Group.


Fertility rate can further be increased by having room to lower the interest rates without devaluing the currency or increasing local inflation, which the unwinding of the urban residential real estate ponzi scheme allows.

 

[PakFactor]

Do you think a stimulus package is imminent ? I’m not sure I understand why the Chinese Government is reluctant?

Once you open that can of stimulus, closing the can will be almost impossible, which could lead to unintended consequences.

 

[dbc]

Once you open that can of stimulus, closing the can will be almost impossible, which could lead to unintended consequences.

On the contrary, stimulus applied with surgical precision is the only lever the Chinese have to escape depression. But I have a sinking feeling the Chinese will instead revert to a central planned economy by nationalizing all industry.

 

[Mista]

Do you think a stimulus package is imminent ? I’m not sure I understand why the Chinese Government is reluctant?

They did a huge infrastructure stimulus back in 2008 and it's one reason why their debt surged since 2009, and they had to do a painful deleverage. So they have a mental scarring, and large stimulus will just undo their deleveraging efforts over the past few years and kick the can down the road.

What's more China's economic slowdown is structural, they are not going back to 7, 8% growth. They simply have to accept a lower growth. Otherwise they will end up like Japan. Endless stimulus resulting in large debt, with deflation kicking in after stimulus wears off.