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Doncarlo
Bloomberg Television
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Comments by "Doncarlo" (@doujinflip) on "China's Economic Comeback Story" video.
Inflation is self-correcting, because it compels spending some of which becomes capital investment and improved productivity. Every economist agrees this condition is better than the downward spiral of deflation where tanking demand tanks the job market, like what China is facing.
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Sure it's not cashing out to prop up the CNY, keeping the exchange rate from tanking and causing panic among all the Chinese people whose wealth is already disappearing in bad mortgages and randomly locked bank accounts?
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The US has been "on the brink of collapse" since the War of 1812. Each crisis brings us closer to that ideal of "liberty and justice for all". Remember that walking upright is involves each step forward catching yourself while literally falling. It's not the same as a more "stable" four-legged gait.
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Too well perhaps. Now China is facing a deflationary downward spiral because not enough people want to buy Made in China, an imbalance which will only accelerate as Běijīng pushes for even more production.
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Overcapacity means beyond demand saturation. US arms production has the opposite problem, not building fast enough for how much global markets want it.
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