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The figures speak for themselves: consumer prices in China are similar to producer prices. This is good for consumers, but a disaster for the banking system, which, as we know from the fiat system, is dependent on rising prices in order to be able to roll over existing debts into the future and keep the credit engine running. It can therefore be assumed that the Chinese will have to accelerate what they have already done and announced in recent weeks, namely further expand the money supply.
This is good for producers, though, right?
Their input costs are declining, while final goods' prices are flat. That should mean higher profits.
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54 sats \ 1 reply \ @TomK OP 21 May
I don't know if You see commodity prices rising, pressure on consumer prices, too... looks like margins are suppressed
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It looks to me like producer prices are down about 2.5% while consumer prices are stable.
Although, I didn't notice that the scales are dramatically different for the two measures. That pandemic PPI spike way more than offsets the more recent dip.
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I was reading somewhere China doesnt like Japans yen losing value because it hurts their trade. Import or export, I cant remember. Why dont they just keep in their lane?
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The whole chinese thing is not keeping in on their lane, but constant expansion of influence and territory.
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They have so much they can already expand on. WTF do they need any more? At least make life better for the people first.
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Why would they do that? In which way the Comunist Party of China benefits from helping their population for good?
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Don't forget that the deal was always: we provide for prosperity and you all give us your sovereignty.
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That was never the case with CCP
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I know, Pooh bear doesnt think people mean anything.
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Anybody with any power in china thinks the same. It's a CCP core value: the Party above everything else. People are just tools to achieve the Party''s goals.
I dont think there was ever a deal...
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Ways change, they need to adapt with the world.
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They have a tight grab on power and are expanding their influence over africa and south america and oceania.
Xi Jinping's goal is to make a modern day silk road and control commerce world wide. Their population was never a priority, and will continue to be neglected in the next decades.
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Its suffering now with the massive distribution of men to women.
yes, the Chinese are in the middle of a currency competition as major exporters on the world markets. Japan has always been the direct competitor.
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I think it would be better for them just to focus on themselves.
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10 sats \ 1 reply \ @TomK OP 21 May
That would be nice. But....
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They always seem to put their fingers into everything and fumble stuff around.
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