Xi’s Stock Market Hits Five-Year Low As PMIs Trundle
It's not working out for Xi Jinping. Not on the macro-market front, anyway.
PMI data for January, released on Wednesday, suggested China's manufacturing sector spent a fourth month in contraction, underscoring the Party's struggles to revive an economy which, like the path of Jules Winnfield's righteous man, is beset on all sides.
49.2 on the official NBS gauge was marginally better than December, but still lackluster. "Sentiment in the economy has had some improvement," lied a Party functiona
Sounds like a “the beatings will continue until morale improves” moment for Mr. Big China.
More than a little ironic that the overperformance of the U.S. economy vis-a-vis almost every other major economy in the world is due, in no small part, to the major fiscal spend passed under both Trump and Biden — packages that large numbers of one party continue to rail about.
And all the people shouting, “Inflation happened, MMT was wrong!” are silent on subsequent American economic exceptionalism. Worse, they’re not silent because they’re embarrassed at having been demonstrably wrong, they’re silent because they don’t even realize that the outcome (including the inflation) are exactly what MMT would suggest should be expected.
I have often wondered if H ever thinks to himself, the following:
“If my answers frighten you, then you should cease asking scary questions” 🙂
As a half-Chinese person, I feel comfortable extending a familiar maxim to include falling chopsticks.
And while Biden and the Fed have reasonably gotten us into soft-landing airspace, there’s still a lot of talk about inflation with nary a peep about corporate profit margins. Instead, we need to drill more, slow the roll on onerous minimum wage increases, and cut through government red tape. Meanwhile natural gas prices are at their lowest levels since the post-pandemic seize up, and, out today, farm prices are down 18% over the last year. Actual deflation in both cases.
https://us.econoday.com/byshoweventfull?fid=591597&cust=us&year=2024&lid=0#top