By Douglas French
The Chinese are making the same mistake FDR made with his many government programs during the Great Depression and Trump and Biden made with massive government programs during the covid crisis.
related posts
24 sats \ 4 replies \ @4rge 18 Oct
Hitler should of been the go to comparison
reply
0 sats \ 3 replies \ @Undisciplined OP 18 Oct
Inspired by FDR
reply
0 sats \ 2 replies \ @4rge 18 Oct
Oh right, I forgot about all those American gas chambers and piles of jap shoes
reply
0 sats \ 1 reply \ @Undisciplined OP 18 Oct
I forgot about where that had anything to do with the article.
Also, I think you mean Jewish shoes. It was FDR who did the Japanese concentration camps.
reply
0 sats \ 0 replies \ @4rge 18 Oct
R. E. The Big ass quote at the top of the screen.
Go back and reread.
reply
21 sats \ 4 replies \ @xz 18 Oct
Borrow more what, Yuan, and from which lender, from China?
Makes no sense.
reply
0 sats \ 3 replies \ @Undisciplined OP 18 Oct
It makes sense when you disaggregate. China isn't borrowing from China. The Chinese regime is devaluing the savings of the Chinese people, so that they can spend more on their ill-conceived projects.
reply
25 sats \ 2 replies \ @xz 18 Oct
Now that makes sense (in the sense that of inputs and outputs.)
I'm sure that was implied, I asked myself the questionand thought, why they don't write "China is devaluing / dilluting the Yuan?"
Other options to "borrow"
-
The IMF/BIS has a bunch of Yuan (pretty sure they don't have much.) Obviously, a bad idea.
-
PRC/PBoC sells FX, gold or other commodities into the openmarket. I haven't seen much gold changing hands from central banks lately. Just forex. I suppose this is the problem. you can have a football field filled with gold, undereground somewhere, some dude posing with the gold for photo ops, all it can do is sell an image of economic activity exchanged for a heavy, beautiful commodity that is never seen again and never moves (apart from as a statistic in the financial press.)
Or it doesn't borrow. If any national economy went through the bandaid problem, economic activity would recalibrate. Cash would maintain its PPP. Things would become affordable to 'the people'. It's so obvious.
Appreciate your answer.
reply
7 sats \ 1 reply \ @Undisciplined OP 18 Oct
If anything, it seems like China's looking to increase their gold holdings. They've been gradually unwinding their position in US Treasuries for a while, but I'm pretty sure it's just been normal central bank "borrowing".
Unfortunately, it's not obvious enough.
reply
0 sats \ 0 replies \ @xz 18 Oct
Looking to increase their gold holdings and dillute their national currency simultaneously. We live in a world of playing chicken with our nation's material wealth.
reply
20 sats \ 2 replies \ @Satosora 18 Oct
"Austrian Business Cycle Theory tells us that recessions are an indication an economy is healing."
This is the very important, which many people dont realize.
Its important to have peaks and valleys, so that society and economy move forward.
reply
20 sats \ 1 reply \ @Undisciplined OP 18 Oct
That's not my view, at least not to the extent we currently have them. I'd say that valleys are inevitable after an artificial peak.
reply
36 sats \ 0 replies \ @Satosora 18 Oct
Its because we arent allowing the economy to heal.
When we are pumping in all this excess money to "help," it just makes it worse.
reply