China’s economy is imploding

This excerpt from business insider:

The world's second-largest economy isn't growing, producing, or trading as much as it usually does. 

The pandemic rebound that China and the rest of the world were anticipating has yet to materialize, and official data suggests there's a long road ahead before the economy is back on its feet. 

China's National Bureau of Statistics announced Wednesday that consumer prices dropped annually in Julyfor the first time in two years, dipping 0.3%, just slightly better than median estimates for a 0.4% decrease. 

The People's Bank of China is now facing the opposite problem of the Federal Reserve, which has tightened policy for 18 months in a bid to tame soaring prices. Deflation — the trend of prices falling throughout the economy — presents a particularly dangerous trajectory for China, which carries a massive amount of debt. 

Deflation means the real value of debt goes up," David Dollar, a senior fellow at the Brookings Institute's China center, told Insider. "High inflation we know is bad, but it does help manage debt burdens over time. Deflation does the opposite."

Bloomberg estimates total household, business, and government debt at about 282% of annual economic output. 

The latest figures add to the anxiety that's already been swirling about what growth could look like for the rest of the year, and JPMorgan strategists cautioned that China risks a 1990s-style "Japanification" if policymakers don't address the housing market, financial imbalances, and aging demographics. 

Officials in Beijing have urged experts not to portray data unfavorably, according to the Financial Times, asking economists to "interpret bad news from a positive light."

The numbers make this difficult:

• Year-to-date, China's exports are down 5% compared to last year, while imports have dipped 7.6%
• Manufacturing activity has contracted for four straight months
• July exports declined at the sharpest rate in three years, at 14.5% annually

"Before the pandemic, China was growing at about 6%, and now it's struggling to recover," Dollar said. "Consumption really didn't hold up coming out of the lockdown. The main components of GDP on the demand side — consumption, investment, net exports — they all have serious problems right now."

China’s economy imploding….one third of the Russian ruble eviscerated. Stick with moz and the decadent West.

@Stav, I sometimes watch those videos of Joe's Blogs. I think you first posted one here, and since then they have popped into my YouTube feed.

@Moz, I read a similar article that also spoke about Japan, and how they went into deflation and never recovered. 

A long time ago, it was the Japanese that would rule the world - and suddenly their economy slowed down. Still one of the best economies in the world, but not as good as before.

The de-risking of the West from China to diversify suppliers, is going to hit China. Their GDP will probably decline.

The producer price chart is pretty stunning….as is the fall in exports. Investors have been very focused on government restrictions and  anti business rhetoric, but these real factors on their own explain the weakness in stocks like Alibaba.

The Chinese as the world’s biggest exporter are actually more reliant on world trade than the U.S….so their turn towards Russia makes no sense. But as the video suggests we are all likely to pay the price of a Chinese slowdown….a sober note when the US markets are convinced there will be a soft landing. 

A clear, well reasoned exposition…thanks.

Mozart

All this criticism of the Chinese economy and the USA economy is flourishing.    The USA shoed an increae in inflation again last month and the US Government thrive on deficit spending while the USA GDP is in decline as well.

OK - the word economies are struggling - all of them and not only China.

 Much of the current expenditure the US Government rather than arms to replace arms send to Ukraine and waster money and on potentially failing Global Warming projects - so their si money available for that - but the US Government  is cutting spending that would benefit the poor and working  class,      Think what is happening in the USA shows total disregard fr the ordinary people and maximum benefit  for the rich.   I think i was Senator Graham who sad every War  is a good War.   - good for whom?      

I think what is happening is making the rich very happy - unlike the poor and children from time to time who goes to bed hungry.5 

China will survive and even though I dislike the dictatorship totally - Ihey have massive dollar holdings and the U S get loans from China Banks to fund the deficit spending..    China has gone through  bad periods in the past - but came out of it healthier than in the past.            

Funny how you dislike China and Russia, but you only criticize the US. 

Russia bots Clever, HasBeen, Chabal and Moonrover study this chart, you will questioned in due course:

Ah hell I guess the question is obvious. So why do you think 147 million migrants want to go to the US when,  according to you, it’s so screwed up?

I do not only criticize the USA.   I am critical of Russia's invasion of Ukraine as I think te problem should have bene solved by negotiation.   In any event the Ukraine problems was started off by the USA in 2014 with a coup organized and funded by the USA and the fact that ever since then the USA pumped billions of foreign aid into the most corrupt country in Europe -  while s string of politicians benefitted from kickbacks on aid.    Start thinking about politicians in both partis - but mostly Democrats  like Clinton, Biden, Pelosi and Schiff.    

I hate Government corruption - that is why the USA should set an example and that  example they failed to set.   Fact is the Justice Department and FBI set a example of protection of political criminals.    This whole aid program to Ukraine and especially since the start of the war is riddled by corruption n a huge scale.   Senator Rubio asked the Pentagon Official the arms sent to Ukraine - and it was mentioned that only 30% of the arms delivered reached the fighting army of Ukraine by September 2022.    The Pentagon then said they are sending a Colonel to Kiev to co-ordinate arms receipt and delivery to the Ukraine army.    They also sent 200 soldiers to guard the US embassy in Kiev - a BS story since the 200 soldiers were sent to help the Colonel referred to above.

When the issue of biolabs was raised in Ukraine you denied that they existed the denial from the US Government was immediate - there were no biolabs in Ukraine.   That lie was shortly afterwards corrected and then the story came out from the US Government was assisting Ukraine to close down Soviet era ended 32 years ago. When this matter came up in the Senate the story was confirmed that there are bio-labs in Ukraine from the Soviet era in Ukraine which the USA is assisyting herm to close down.-  after 32 years that story manufactured in the USA is BS supreme,   It was added in the Senate that the bio-labs were not involved in dangerous research - but then that crazy bitch who in a video clip in 2014 discussed the people to be appointed as Interim President and cabinet members in the new Government of Ukraine  after the coup -   added that they are worried about the pathogens falling in Russan hands.   In any event there was a biolab found by the Russian army - there were a detailed instruction from the US Department of Health on the issue of destruction of the Pathogens. found in the lab.   In the  one case there is evidence that the US Government funded the construction (completed in 2018) and controlled operation of a totally new bio-lab in Odessa.

What is the fascination of scientists in the USA with gain-of-function research that created new and very dangerous viruses?     The program in Wuhan resulted in the pandemic that spread worldwide and killed millions of people.   The people blamed the Chinese Government for what happened in the Wuhan lab - but the blame rests entirely with the USA project management and funding causing Covid.

The present US Government is totally corrupt consist of liars to boot - you keep quiet on that issue totally and seems to be enjoying the gains made in the stock exchange - but the fact is that the USA instead of setting an example they are setting one of corruption and lies.    The one issue I blame the present Biden Regime for is the sabotaging of peace efforts by Macron before the invasion happened and shortly after the invasion happened  by Turkey.    It is apparent that the present  US   Government wants the war in Ukraine desperately for some or other reason.    The Biden Regime is a curse on mankind - end of story.   

Recently in a praise song to the present regime you mentioned various factors and in response Draad wrote about te hse price increase in the USA,   You respoded in kind and mention it as an example.   Why did it happen anyway?   The reason was that timber prices went up by 300% - the result of new "Green" regulations  and effected constrcction of new homes.   J R Kennedy Junior claimed that house prices are now totally beyond affordability of ordinary people and the price increases from thsoe regulations.  .

By the way you wrote 14 million people want to come to the USA - 7 million succeeded and is now in the USA already.   That included 250 000 children.   The US Government lost track of what happened to those children are used as slave laborers in  US factories (source the New York Times) - an equally large percentage are used as sex slaves in brothels and by pedophiles.

When a country is governed by criminals criminality takes over and that is what is happening with the USA at present.      I hate it because Democracy is under attack by the present Regime.

Probably end well 2nd half of 23.

See Chief of their military is touring Russia and Belarus. 

They reckon a war between US and China will be a disaster for both. USA doesn't mind a disaster in Ukraine though. 

Hall Of Fame

48914 posts

I do not only criticize the USA.   I am critical of Russia's invasion of Ukraine as I think te problem should have bene solved by negotiation - "Insert - it was everyone's fault - except Russia.

I have never seen DumbMike criticize Putin, for he is a PutinPanzee

S B

It was Russia\s fault as well since they should have shown more restraint.   A peace agreement  was in fact signed by Putin and Zelenskyy in the two weeks prior to the invasion.   The agreement was facilitated by Macron - but the USA  sabotaged that agreement and it is that sabotage that really caused the invasion.   

The present US Government is a curse and needs to be eliminated or they will destroy desdtgroy democracy and ultimately mankind.

You cannot prove anything wrong about what I wrote - so you return to the BS about anybody opposed to h war and for peace negotiations is a supporter of Putin.   I am sure if Trump was President there would have been no war and Ukraine would not be used for bribery and corruption in Ukraine like the present criminals in charge are involved in.     But you are a brian deficient warmnger and an idiot who thrives on lies,

Well... USA is definitely not the greatest country in the world anymore. 

One of the few things they're number one in is defence spending. Not much defending though, more like supplying 

Ah hell I guess the question is obvious. So why do you think 147 million migrants want to go to the US when,  according to you, it’s so screwed up?

That is a severe underestimate. Adding one zero to the right may come  close (and yet)

And an obvious answer is that people want to move to the US despite it being so screwed up.

They use other criteria to make their decision.

Liberals have a deep problem of self perception, they somehow conclude in ways that flaunt their failed self perception.

People do not want to move to the US because it is a nice, not screwed place. They want to move to the US as they concentrate consumption of resources on a world scale.

Human beings are living species. Just as any other living species, they rely  on habitats. Just like any other living species, when the habitat is moved around, the species relying on the habitat move around.

Human beings follow resources. They are driven to consumption hubs.

Migrants want to move to the US for the same reason they want to move to Saudi Arabia ( a location that comes regularly before the US as a choice of migration)

Because the US are a massive consumption hub, just like Saudi Arabia.

If China manages their transition, China will face the same situation.

The same happened for people in the countryside and their migration to towns.

The industrial era introduced mass transportation meaning that resources were transported en masse to towns. People quickly figured out they had better chances to consume what was produced in the countryside by moving to towns where the consumption happened.