The Keynesian fiat theater is once again taking on the most bizarre form of predictability. If the over-bureaucratized and over-intervened economic engine stutters, liquidity is pumped into the system, interest rates are manipulated and politicians engage in their well-known competition for the stupidest subsidy programmes.
Now it's China again. In a bold move to jumpstart its faltering economy, the CCP has announced an unprecedented fiscal stimulus package. Finance Minister Lan Foan revealed plans to inject 2.3 trillion yuan ($325.5 billion) into the economy over the next quarter, marking the largest intervention since the 2008 financial crisis.
This strategic initiative aims to address multiple economic pain points:
Supporting struggling local governments
Bolstering the ailing property market
Strengthening state banks' capital reserves
Providing relief for low-income citizens
The stimulus includes issuing special bonds and lowering debt ceilings for local administrations, freeing up funds for infrastructure projects and job protection. Lan hinted at additional "counter-cyclical measures" to combat deflationary pressures and weak consumer confidence.
This decisive action comes amid growing concerns over China's economic health, with recent data clearly missing forecasts and threatening the government's 5% growth target which is obviously bs.