@[email protected] to World [email protected] • 2 years agoChinese economy expected to have slipped into deflation as recovery falterswww.theguardian.comexternal-linkmessage-square84fedilinkarrow-up1185arrow-down114cross-posted to: deflation
arrow-up1171arrow-down1external-linkChinese economy expected to have slipped into deflation as recovery falterswww.theguardian.com@[email protected] to World [email protected] • 2 years agomessage-square84fedilinkcross-posted to: deflation
minus-square@[email protected]linkfedilink2•2 years agoThey didn’t pump hundreds of billions of dollars into the free market?
minus-square@[email protected]linkfedilink2•2 years agoDo you think china’s market is free? If so, the stated owned companies are the ones carrying the debt. Not sure how different that is to a state having the debt. https://www.cnbc.com/2021/06/29/china-economy-charts-show-how-much-debt-has-grown.html And what about my other question. Where does this jump come from?
minus-square@[email protected]linkfedilink0•2 years agoTurns out, it’s advantageous to loan out money when global interest rates were dropping to about 0. Who woulda thunk?
minus-square@[email protected]linkfedilink2•2 years agoWhat are you talking about? China was never at 0% interest. What does that has to do with the previous comment?
minus-square@[email protected]linkfedilink1•2 years agoThe principle being, lower interest rates lead to more debt because spending is less expensive.
They didn’t pump hundreds of billions of dollars into the free market?
Do you think china’s market is free? If so, the stated owned companies are the ones carrying the debt. Not sure how different that is to a state having the debt.
https://www.cnbc.com/2021/06/29/china-economy-charts-show-how-much-debt-has-grown.html
And what about my other question. Where does this jump come from?
Turns out, it’s advantageous to loan out money when global interest rates were dropping to about 0. Who woulda thunk?
What are you talking about? China was never at 0% interest. What does that has to do with the previous comment?
The principle being, lower interest rates lead to more debt because spending is less expensive.
Look at the 5 year view to see the jump