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Deflation: Why falling prices in China raise concerns

9 pointsby chrononautalmost 2 years ago

1 comment

richard_rainbowalmost 2 years ago
Does anyone know if China&#x27;s economy is growing anywhere near their magic 7% rate they craved in years past? 14% drop in exports is huge for them. I&#x27;d expect that without those industries greased some of them must be writing off debt. When debt is written off, the money supply shrinks. It is the nature of every national currency I know of in the present time. Money is debt. It is created as soon as some loan is made.<p>Could be a start of a vicious cycle of write offs, layoffs and worse. The Chinese are known to be savers in the past and they saw the worst of inflation like many places. Few people were expecting deflation. But there it is.<p>Last year someone said that Beijing was bent on invading Taiwan but didn&#x27;t because of floods. Perhaps the report I saw recently was wrong but I believed floods as bad or worse are going on right now there. I have no malice for 2 leggers like me over there, if enemy or friend. Ultimately we are stewards of the same Earth and call ourselves members of the world. For now, at least.