Comments by "Vale Tudo" (@valetudo1569) on "Kniffen: China has been exporting deflation, and that's been beneficial to the retail sector" video.

I agree
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@oceanwave4502 You act like SWIFT was given from god and Western countries somehow took control of it. Its because the US created SWIFT. Any country is free to create an alternative if they want to, and in fact China is trying to do that but without major success.
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@lagrangewei This is incorrect. China is, by far, the biggest surplus country in the world and in history, in fact. They depend on exports for GDP more than any country by a large margin. You can argue this but numbers are numbers. I can pull them up if you like
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@vashix The reason China runs big trade surpluses isn’t just because of its high production capacity—it's also about low domestic demand. Basically, a lot of people in China don’t make enough money to buy a wide range of imported goods. Why? Wages in China are relatively low compared to the size of their economy. Instead of going into people’s pockets, a big chunk of national income goes into savings and subsidies that keep their exports cheap. So, China ends up producing way more than its own people can buy. To make their system work, they depend heavily on demand from other countries. That's why they worry when other nations talk about raising tariffs—it threatens a key part of their economic model.
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@vashix You are drawing a false equivalency. Germany and Japan's trade surpluses compared to China's are like a mouse to an elephant. About demand - I'm saying China sells to the world because China has insufficient domestic demand (that means inside of China) to buy all that they produce...that is why they call it overcapacity. China relies on demand from the rest of the world to keep its model running... and the number one country who supplies that demand is the US and 2nd the EU. This is why potential tariffs are extremely concerning to the Chinese government.
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@bl5608 If you have deflation - then that means your economy is doing horribly. You don't just magically get deflation without a host of problems. Many would argue inflation is a much better problem to have than deflation
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@bl5608 hmm I disagree. Very modest inflation is good for economic growth (most would estimate around 2%) anything higher than that - not so much. Deflation is also not good as its not only a symptom of a poor economy but it has the added chilling effect on spending - which adds to even less economic growth and deflation, and the spiral continues. I think you need to at least do a google search for these things and read a little bit before you comment on them
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