Comments by "Vale Tudo" (@valetudo1569) on "China faces a high risk of falling into a 'debt-deflation loop,' Morgan Stanley says" video.

  1. The thing I disagree with this gentleman is that China is in a better place Japan was. I'd say at best it's mixed...some things are better, and some are worse. China has more control of it's financial sector than Japan did and stricter capital controls, however - It took Japan 20 years into their crisis before their population started shrinking, they were also more developed, and more of China's economy is held in the real estate sector than Japan's was. So at best it's a mix, and if it will be better or worse than Japan's situation is an unknown.
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  2. Lol you have no knowledge of economics do you? China's large savings is exactly why they are in this issue... what a silly guy....and you're here bragging about China having high savings lol
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  3.  @chasx7062  You're either the same guy as fba or just another extremely ignorant person. No need, you will soon see why deflation is an even worse problem than inflation.
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  4.  @ssuwandi3240  The comparison is quite fair because they are following a very similar economic model. Although Japan was technically democratic with a private banking industry - they didn't quite manage it like that. They still set loan quotas and the state still directed where the money went ... it's why their situations are both so similar. Households got a low share of GDP in the form of wages, consumer spending was low, extreme over-investment in real estate and infrastructure, deflation, high debt to gdp ratio, used "window guidance" to instruct banks which sectors to lend to (whether they needed it or not), high exports and trade surpluses with the rest of the world. The situations are so similar because the economic models were/are so similar. There are some things that are better about China"s situation over Japan's but also some things that are definitely worse.. So its might not be 100% the same, but odds are they will be similar and could be better or worse. We will find out It's important to note that this economic model was not invented by the Chinese, or the Japanese... it's a known and documented investment-led economic model and it has always ended up with either a violent rebalancing (US in the 1920's, Brazil in the 1960's) or a long, drawn out period of rebalancing that results in prolonged stagnation (Japan and probably China).
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