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Is Kneecapping China A Good Idea?
At this point, I should probably apologize to Beijing for beating the dead horse that is Chinese domestic demand.
I've belabored the point beyond the diminishing returns threshold, but it's kinda important, the Chinese economy being the world's second-largest and such.
Last week's data deluge found the Party insisting the economy met Xi Jinping's growth target in 2024, even as analysts and economists openly questioned the numbers. The CCP's likely to suggest growth will be 5% again this year,
” Households are trying to de-leverage, so trying to force-feed them cheap credit won’t work”
It’s a pity that the Chinese populace does not appear to be anxious to emulate US consumers. That’s often attributed to a mistrust of the safety net, especially when it was sparse at best. But here we all count on the sanctity of Social Security, Medicare and even Medicaid which we assume will not be severely reduced. That makes it easier to pull out those credit cards or use BNPL financing. For everything. Until one tries to get by on Social Security alone.