Sawfish <
sawfish666@gmail.com> Wrote in message:r
On 8/8/23 10:06 AM, PeteWasLucky wrote:> Sawfish <sawfish666@gmail.com> Wrote in message:r>> On 8/8/23 9:32 AM, bmoore wrote:> On Tuesday, August 8, 2023 at 8:30:21AM UTC-7, Sawfish wrote:>> For a while I've read headlines indicating that China's
economy is going>> thru an unsound phase. I've ignored it because I didn't think it would>> last, and that it was therefore unimportant to me.>>>> Now I begin to wonder just what's happening.>>>> Any ideas/information?> I guess the "zero covid" policy
didn't work out so well for their economy.That was dropped last Dec. In what ways does it affect the current downturn?I realize that this is complex, but I don't know either. I'm not issuing a quiz to RST to try to find victims, I really am trying to get
a handle on what's going on there as regards an economic downturn. What's the nature of it, what is primarily being affected now.E.g., is it residential real estate, as it was in Japan maybe 20-30 years ago? Bear in mind that unlike the west, the eastern
Asian nations are economies that are *not* primarily consumer driven. They are net export economies, and hence disruptions in housing--which often affect consumer spending here--don't leak out into the manufacturing/export sector, which is the engine of
the economy, not consumer spending.I's really a kind of mystery to me.>> But it's a global economy, thus it affects us too.-- ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Sawfish: He talks the talk...but does he walk the
walk?~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~> Free money policies for 17 years combined with longest bull stock market ever.That refers to Chinese monetary policy and the Shanghai exchange?-- ~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Sawfish: A totally unreconstructed elasmobranch.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
It's about the very low interest rates policies used by USA, Europe and other countries to stimulate the economy for the last 17 years.
All economies are linked together, and we have created huge bubble that we aren't able to fix now. Feds bought all the bad assets that created the mess in 2007 and cleaned the books as of nothing really happened.
The trillions of dollars poured in the economy during covid times actually did more damage to the economies than fixing it. Now China is trying to stimulate the economy by lowering interest rates while the USA is raising the interest rates which is a big
conflict that is impacting China efforts.
Here is an article discussing some of these issues:
https://www.google.com/amp/s/amp.scmp.com/economy/china-economy/article/3190420/us-federal-reserves-interest-rates-pledge-leaves-china-less
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