Xi Shows Up At Central Bank, Ousts Defense Minister
Xi Jinping made an unprecedented visit to China's central bank on Tuesday and Beijing removed Li Shangfu as defense minister two months after he disappeared and just seven months after he assumed the role.
Taken together, the news felt ominous, even as markets were likely to view Xi's bank trip as a sign that the Party is becoming concerned enough about the economy to enact meaningful stimulus, particularly in light of news that Beijing will approve some CNY1 trillion in additional sovereign de
Preparing for a big economic stimulus?
Or preparing scenarios to deal with US financial sanctions if needed?
You decide!
I hope that the autocratic minded Americans that bemoan Fed independence etc. take notes on Erdogan and Xi’s lack of success at individually “managing” an economy.
Given the level of interference with commerce (Jack Ma to Zero Covid to Evergrande) I expect that China’s in a downward spiral (demographics too baby!) and nobody inside will dare tell the truth which will only exacerbate the implosion. (Putin, will you and your wartime economy be okay if China buys less oil?)
The smart US money already moved out or cut ties (except Apple and Tesla who are too far in to bail)… not just because of the US government but the obvious trends that they’ll lose money (either evaporated due to fake business or confiscated by the party’s last gasps).
Maybe the hardest part to fathom: China is so big and so globally intertwined this collapse could take years.
Why do autocrats and dictators never seem to understand the basics of economics and believe their will is good enough to change economic reality?
I guess because they attribute much of their success in reaching their position to said will and are unable to fathom a situation in which their will is insufficient to achieve the desired result. Plus, being surrounded by yes-men and never having to hear a “no” probably makes one believe one is able to will things into existence.