How do you solve the problem of a lack of demand in the Keynesian financial system, which has arisen due to massive manipulation of interest rates? You create new demand, with new manipulation of interest rates and new credit, executed by state actors. The crisis in the Chinese real estate market, the largest single market in the global economy, has taken on unspeakable proportions. The ongoing intervention of the communists to stimulate economic growth has resulted in 3.6 billion square meters of vacant housing, ghost towns and a huge overcapacity in the construction sector.
The Chinese are also unable to escape the failed economic thinking of the Keynesians and are now trying old-fashioned recipes. Regional state institutions are now supposed to lend developers a helping hand and take over empty housing to inject new liquidity into the system and stabilize prices. This is all the more important as the collapse in real estate prices is putting regional banks under massive pressure and has caused the credit mechanism to falter. China is turning into a typical stupid fiat economy that knows nothing other than intervention spirals and manipulation of the credit market, which is destroying the economic foundation that would be necessary to authenticate political totalitarianism.
"There's no problem too big [that] a little keynesianism can't make worse"