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Vale Tudo
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Comments by "Vale Tudo" (@valetudo1569) on "China Latest: Consumer Price Drop Fuels Deflation Fears" video.
Deflation is worse than inflation, smartguy...google why deflation is a bad thing
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@donkeychan491 deflation is bad because if people think things will be cheaper in the future - they won't spend today. The "not spending" of today then increases deflation and then the cycle continues. While too much inflation is bad - a little inflation is good for economic growth. Many would say that's around 2-3%. There is media bias in every direction. There is a ton of stuff against China and a ton of stuff for China. Just depends on what your algorithm is set to. I don't think there is any indication that China's surplus is due to efficiency. There is a known and documented problem of over-capacity in China - building things nobody needs. It's a natural consequence of over-investment in things like manufacturing or infrastructure. Check out Michael Pettis when you have a chance. He's living and teaching at a very reputable University in Beijing and would not be allowed to spew lies or give anti-China bias. He breaks all of this down very logically and explains that its known issue but why its so hard to change
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@iggy5347 You're talking nonsense. Look up Michael Pettis on youtube, watch a few of his videos to get an understanding why China's trade surplus is actually a bad thing...just like US's massive trade deficit is also a bad thing. Its not as simple as surplus = good and deficit = bad...they are both really bad
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@donkeychan491 There is a reason policymakers are worried about deflation. You can try to justify it in your head, but in China's case - it isn't a good thing, and they will do whatever they can to avoid it
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So that is a complete and factual lie. It isn't from consumption and that is the problem.. consumption is extremely low and most of the growth supply-side spending by the government on infrastructure and manufacturing using debt. You are making things up sir
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@Thebt7 google why deflation is bad
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@iggy5347 You realize that is a bad thing right? Low imports signal weak domestic demand....the trade surplus represents the government's over-investment in manufacturing at the cost of household income...hence the lower domestic demand. The more the trade surplus grows = the weaker consumption will become
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@iggy5347 Its not that simple in economics, like it is in your personal spending. The cheap exports come at a cost - lower household income. I'm not going to bother typing it all out to explain, look up Michael Pettis who is one of the leading professors at Peking University in Beijing. He's trained a lot of the economists for the Chinese government and does a great job of explaining it.
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You clearly don't understand economics. Look up deflation
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@Houthiandtheblowfish deflation and controlling inflation are not the same thing. That is not what's happening here
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@mythbusterthe6749 Why are people who support China obsessed with the US? You guys always have to bring them up and try to compare. 1. China has 4x the population, so the fact that its not 4x the market says something. 2. There is more to consumption than simply the "car market" You're a clown
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@kamrantaherkhani2066 China has printed more money than anybody...
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@HFadeZeroHour Pretty sure most economist who look at China can see that. Western or otherwise
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@iggy5347 China's exports are decreasing, and relying on exports for growth works when you are smaller. China is too big now to rely on exports for future growth and the room and willingness to absorb even more exports by the rest of the world is quite low. You're thinking is right in line with the CCP policymakers - more investment into manufacturing with the hopes of creating new jobs. Unfortunately manufacturing is already over-invested and the constraint is not supply of capital - it's demand. A better idea would to be use that money to increase household wealth. One way to do this would be to strengthen social safety nets. The social safety net is vastly under-invested as its only 2.5% of GDP
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@ssuwandi3240 Oh here comes this guy again... the online China troll to the rescue. I'm not even going to waste time taking you seriously.
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@iggy5347 Alright you can think what you want. I don't think in "month to month" terms, I think in years. And I never said China's exports were bad. I also don't think exports are a good way to compare the US and China. Anyways, you want to believe what you want to believe. If you want to learn something new or gain understanding - watch Michael Pettis
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@yehimstone5492 Monetary inflation is only one source of inflation. It can also come from: demand exceeding supply, supply chain disruptions, shrinking populations, exchange rate discrepancies, expectations of futre inflation, etc etc... I don't agree with going with bitcoin.
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@kwphone9735 Lol you buy all the propaganda eh? Look up all the scandals and corruption of the grain, and how a lot of it has went bad. Russia can't even begin to supply all of China's needs of oil and gas, factually false - do some research on how much China consumes and how much they can get from Russia. Bro you just haven't dont any research and just spouting off talking points from CCP news media. Take some time, do research from legit sources, and then come talk.
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