prc30 on Nostr: To a comment made earlier, this sort of pressure continues. #China will remain very ...
To a comment made earlier, this sort of pressure continues.
#China will remain very reluctant to provide any material fiscal stimulus as it runs entirely counter to the policy of deleveraging the economy. I believe that this point is known in western countries and leaders there are working overtime to press Beijing to change its approach.
Why this matter is that nation-state debt is a relative game. Rising debt levels only remains feasible so long as all countries follow along, albeit at a different pace from time to time.
China made the decision to take its own deleveraging path beginning three years ago. This then put pressure on Washington and Brussels. What is to be done? Make it about trade and push the argument that China, without fiscal support (debt), will reduce consumer demand and that, in turn, means higher rates of exports leading to greater geopolitical destabilization.
There is some truth to all of this and I do believe that China is running a mercantilist export policy. Addressing this issue, however, requires that America and Europe most first respond to their own debt issues. We all know that this isn’t gong to happen. All that can be done is to continue pointing the finger at China.
https://www.reuters.com/markets/asia/imf-chief-economist-says-lack-domestic-demand-fuels-chinas-export-growth-2024-10-22/
#China will remain very reluctant to provide any material fiscal stimulus as it runs entirely counter to the policy of deleveraging the economy. I believe that this point is known in western countries and leaders there are working overtime to press Beijing to change its approach.
Why this matter is that nation-state debt is a relative game. Rising debt levels only remains feasible so long as all countries follow along, albeit at a different pace from time to time.
China made the decision to take its own deleveraging path beginning three years ago. This then put pressure on Washington and Brussels. What is to be done? Make it about trade and push the argument that China, without fiscal support (debt), will reduce consumer demand and that, in turn, means higher rates of exports leading to greater geopolitical destabilization.
There is some truth to all of this and I do believe that China is running a mercantilist export policy. Addressing this issue, however, requires that America and Europe most first respond to their own debt issues. We all know that this isn’t gong to happen. All that can be done is to continue pointing the finger at China.
https://www.reuters.com/markets/asia/imf-chief-economist-says-lack-domestic-demand-fuels-chinas-export-growth-2024-10-22/