We are witnessing global disinflation with rates coming down relatively fast. China now officially entered deflation which in itself is a fundamental problem for a credit based frictional reserve monetary system. Therefore the CCP is trying to force commercial banks to losen lending conditions and push fresh liquidity into the crumbling credit sector.
pull down to refresh
0 sats \ 4 replies \ @cyberpunk02 9 Nov 2023
hmmm, but the chart shows that they had quite a bit of deflation in the past. Why is crumbling credit sector so bad? Just fiat crumbling along with wasteful fiat things? China eco probably take us with it though
reply
26 sats \ 0 replies \ @TomK OP 9 Nov 2023
Yes, it can take us down. But: they can bail out their banks and let the people suffer with their total contral state power. We will have revolts
reply
0 sats \ 2 replies \ @cyberpunk03 10 Nov 2023
People get hungry, then they get crazy. What happens when soldiers and officers get hungry? Plus they have massive loans out to countries that can't service the debt, let alone pay it off. Plus they have major water problems. Plus young people are protesting. Old people are protesting. And they have scrubbed tienaman square from their internet. Plus a lot of companies are pulling their manufacturing out of China, so that their exports might start crashing. That is their only actual industry. And the usa is like 80% of their market I think. They are so screwed.
reply
5 sats \ 1 reply \ @TomK OP 10 Nov 2023
Yes, indeed. But they have more resilience to survive starvation
reply
0 sats \ 0 replies \ @cyberpunk03 10 Nov 2023
Yeah there it can hold together for months. Plus they are brainwashed to exist for the greater good for probably centuries if not longer. If people go hungry for a week here, we are screwed haha.
reply
0 sats \ 0 replies \ @bitcoin_rationalist 9 Nov 2023
https://m.stacker.news/4486
reply