China is on the cusp of a deflationary vortex. “”While an economy-wide generalized deflation is yet to be seen, the deflationary spiral looks to have started in some industrial sectors, attesting to considerable stress with the economy.” “All engines of the global economy are sputtering at the same time.” This is not good news but it will be Bush’s fault.
This post was last modified on October 8, 2021
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just means time to issue more of that sweet M2
I called this 5 years ago. No way a country can run its economy like China has, artificially inflating its currency and all that jazz, and expect the good times to go on forever.
A "deflationary vortex" sounds like it might produce what Ross Perot famously called a "giant sucking sound". A "giant screaming sound" is what I'm going to produce as soon as the first Progressive economist suggests we bail out China.
They don't have to get a bailout. They'll just call in all the loans they hold. Then WE will need a bailout. And where will it come from? Nowhere. Noone else is in a position to bailout anyone.