Jose Sammut on Nostr: My understanding is that the government has done a policy shift. They used to fund ...
My understanding is that the government has done a policy shift.
They used to fund business but since central planners struggle to allocate capital, they have an over supply of manufacturing / real estate. It doesn't make sense to throw money at manufacturers / builders, because that would just increase supply further, so they're trying to create domestic consumers, bail out the stock market instead.
If Trump does protectionism against China shit could go really bad for them I think. I don't know if anyone else cares to take advantage. If they start dumping product in the west it reduces pain in China but would destroy manufacturing in the west. Then when everyone's out of business they can raise prices again. Or western companies just move to China.
They used to fund business but since central planners struggle to allocate capital, they have an over supply of manufacturing / real estate. It doesn't make sense to throw money at manufacturers / builders, because that would just increase supply further, so they're trying to create domestic consumers, bail out the stock market instead.
If Trump does protectionism against China shit could go really bad for them I think. I don't know if anyone else cares to take advantage. If they start dumping product in the west it reduces pain in China but would destroy manufacturing in the west. Then when everyone's out of business they can raise prices again. Or western companies just move to China.