10 Jan 2024 5:34 am
And American spending is setting records. The economy is humming.LowIQTrash » 10 Jan 2024, 3:15 am » wrote: ↑ Pinging @Sumela since this is one of his subjects of interest (and may as well ping @Cannonpointer
If you read neoliberal rags like “The Economist,” you might think China’s economy is imploding and that this is a repudiation of Xi’s economic policies.
25%+ youth unemployment, etc
What is going on?
Well apparently Xi decided that high housing prices - the consequence of rampant financial speculation - is only benefitting a small cadre of wealthy investors and driving down the birth rate. Xi and the CCP decided to force an implosion of housing prices.
This caused a “reverse wealth effect” where “feeling poorer” made people less likely to spend. Less spending = less gee dee pee.
But it’s worth noting what the alternative is…and if Xi actually made a good choice (or at least picked the “lesser of two evils”)
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Since the West is governed by Neoliberal Economics, which I have no doubt is one of [[[THEIR]]] creations, it seems the primary goal of Western “leaders” is to inflate bubbles in stocks, bonds, and real estate. Even though there is no corresponding increase in real production, the mere fact that someone’s house is worth more causes them to spend more money….and very often take on unsustainable levels of private debt.
The flip side, of course, is that once your “economy” (based on shuffling paper assets around) crashes because equity prices are no longer sustainable, you are dealing with economic damage that cannot be fixed within the span of 5 or even 10 years. The scars of the Great Recession never went away as millions of people simply dropped out of the workforce, while YOUR (((treasonous government))) padded the numbers with FAKE stats to make everything look “fine and dandy!”
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Based on my own readings and understanding of financial markets, I can say with certainty: the secular bull market in US stocks that began in 1943~ is coming to an end in the next 5 years, ushering in the Second Great Depression.
Maybe China WILL have the last laugh. Only time will tell.
