Comments by "Arabic Reja" (@ArabicReja973) on "China Inflation Stalls While US Runs Hot | Bloomberg: The China Show 4/11/2024" video.

  1. Inflation is much better than deflation. Deflation will cause prices lower. But that's an oversimplification of the problem for those who can't think far enough. For example, the current deflation in China 🇨🇳 can cause: - manufacture closures because they import high price, export low price, - farmers can't harvest, - layoffs and high unemployment, - more home foreclosures because house values are less than what they owe the banks, - The real value of China's debt will increase making it hard for China to pay debts, - GDP declines, Countries tackle inflation with raising interest rates. For deflation, it takes decades to get rid of it with no good solution.
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