China on brink of deflation as prices plunge

[Foinikas]

I feel the opposite, you enjoy your inflation and keep printing more money and zero dollar purchase.

The guys above posted whole paragraphs,explaining to you about deflation and all you can say is "inflation so much worse,just print more money" and you repeat that again and again. Like a bot. A chatbot.

 

[dbc]

They did a huge infrastructure stimulus back in 2008 and it's one reason why their debt surged since 2009, and they had to do a painful deleverage. So they have a mental scarring, and large stimulus will just undo their deleveraging efforts over the past few years and kick the can down the road.

What's more China's economic slowdown is structural, they are not going back to 7, 8% growth. They simply have to accept a lower growth. Otherwise they will end up like Japan. Endless stimulus resulting in large debt, with deflation kicking in after stimulus wears off.

But surely something is needed to support the mortgagor? Particularly those who are massively upside down on their home equity?

 

[Mista]

But surely something is needed to support the mortgagor? Particularly those who are massively upside down on their home equity?

I think a slow decline is manageable. Especially when property is so overpriced in Chinese first-tier and second-tier cities.

 

[Stranagor]

China always has low inflation rate and fast rising wages, go and ask your Chinese friends if you have any.

Young Chinese village school teacher jumps around with joy after receiving government pay raise. China greatly improved rural school teachers' pay and benefits to enhance rural education. This young rural school teacher jumped around with joy after receiving over 10,000￥ （$1,574）monthly salary via her cellphone.

She was jumping several years back when you first shared it. And many times in between.

These people are jumping but for a different reason:

 

[beijingwalker]

Lol, haters have a field party when they see there's no inflation in China, and we Chinese have every reason to party with them

US consumers this summer pay $28 for a takeout salad and $68 for a seasonal barbecue

The US and China: A Tale of Two Inflations

Plus: Good business in stopping methane leaks.

www.bloomberg.com

 

[beijingwalker]

China's zero inflation may have some connection with record high inflation in the west, China has too many consumer goods and the west doesn't have enough, if the west import more from China , zero inflation in China and high inflation in the west could both ease and meet half way. The east meets the west.

 

[Species]

China is teetering on the brink of deflation amid mounting concerns about the health of the world’s second largest economy.

Consumer price inflation (CPI) fell to zero in the year to June after a sharp fall in pork prices. The official figure was the weakest reading since February 2021 and below economists’ estimates of a 0.2pc annual rise in CPI.

Producer prices also fell by 5.4pc in June, marking the ninth straight monthly decline and the steepest fall since the end of 2015.

China has struggled to break out of an economic malaise caused by draconian zero-Covid policiesthat were only scrapped at the end of last year.

Heightening tensions between Beijing and Washington have also weighed as Western companies increasingly shift investment away from China.

Youth unemployment in the country stands at 20.8pc as record numbers of graduates struggle to find jobs.

Duncan Wrigley, chief China economist at Pantheon Macroeconomics, said: “Insipid consumer inflation is an indication of the soggy consumer spending recovery, especially for goods, as well as excess production capacity.”

Several of China’s internet giants reported disappointing sales figures at a major shopping event earlier this month.

Economists expect the People’s Bank of China to respond to the country’s weakening economy with cuts to interest rates.

Analysts at Barclays said in a client note: “We think the more challenging deflation environment and sharp slowdown in growth momentum support our view that the PBOC has entered a rate-cutting cycle.”

Some economists believe Beijing will have to supplement rate cuts with tax reductions or increased spending to boost activity.

However, Mr Wrigley said Beijing was unlikely to be forthcoming with a massive fiscal stimulus.

He said: “So far the public information points towards a targeted, limited stimulus, which will largely be funnelled into support for industry, technology upgrades and private firms, rather than a significant consumer handout.”

Looming deflation in China stands in sharp contrast to continued bouts of inflation seen elsewhere in the world.

Britain’s inflation rate stood at 8.7pc in May, forcing the Bank of England into its most aggressive round of rate rises in decades.

China on brink of deflation as prices plunge

Beijing risks slipping into a low growth rut

www.telegraph.co.uk

So that's where Temu is coming from!

 

[beijingwalker]

There's reason why many economists say in a trade war, no one can be a winner.

 

[leviathan]

could this be the reason behind the Chinese refugee crisis?

no one goes to China and yet Chinese leave China ?

https://twitter.com/x/status/1647941268662636544

refugee crisis? Less than people killed by gun in States.

The guys above posted whole paragraphs,explaining to you about deflation and all you can say is "inflation so much worse,just print more money" and you repeat that again and again. Like a bot. A chatbot.

He answer the question already. Your chatbot keep asking~

population collapse is cuz no one sees hope in a terrorist/feudal/xi-centric future

Enjoy your 7.21% morgage rate? O wait, you cant afford one! Enjoy your rocketing rent.

 

[MH.Yang]

And again, I did not ask whether you prefer inflation. I ask you whether you prefer to work less if you want to pay less tax. I don't want to change anything from you, and I can't if you won't answer that simple question to begin with.

How hard is it to answer that question and why would you dodge it for 5 posts straight without just giving me a straight answer?

I can ask anyone else, @dbc @gambit @That Guy @Mista , I doubt they will hold up this simple question like you do.

I didn't realize that the two of you had been arguing for so long. I remind you of the difference between the two countries:

1, Chinese people like to save, they generally have a lot of savings, so they hate inflation more and don't mind prices going down.
Americans commonly have a lot of loans that need to be paid, so they prefer to see inflation and a decrease in the purchasing power of their currency.

2, China has nationalized land and every farmer has his own land. Migrant workers in China can go back to the countryside and farm their land even if they are unemployed. So the Chinese government is not overly concerned about unemployment.


BTW: Don't worry about China, our second quarter GDP growth has returned to 7.6% to 8%. Falling prices have not affected China's economic recovery from the epidemic.
You should worry more about the U.S. How long can the U.S. sustain such crazy interest rates?

 

[jhungary]

Everyone can post or not post here, it's their choice, if this basic right in PDF really hurts you, then let it hurt.

Well, yes, everyone can post here, but not whenyou reply me to something and then I challenge you and you pled the fifth, that's wasting people time

We all know the answer to that question. We all know the way you are going you will either have to either admitted you are wrong or you go back on what you said, because that is that question was designed to, and sure, you don't want to answer that. that's fine, you don't want to admit that you are wrong or you don't want to go back on your point, that's fine, but if you do, then why you go after my post to begin with? So you ended up pleading the 5th on the exact question you know it's gonna come?

Again, this is not the scenario where I ask you something and then you don\t want to answer, I didn't call on you, and you INTERJECTED Into this conversation between me and some other, that's wasting my time, interjecting or posting something is fine but if you post are without value, like you don't want to answer me that simple question and give me the runaround, that's trolling.

I think you’re wasting your time on him. He doesn’t even know deflation results in pay cuts and rising unemployment. He thinks deflation means work less earn more…lmao.

Well, what else is news?

he knows the answer to that question, and it is going to expose him, because he knows deflation is not as what he thinks and he said that just because he wanted to spin it as a good thing for China, I mean, would he really want a deflation? He certainly not as he knows not to answer that question about tax, but at the same time, that's his position stuck because if he would have to go against his comrade supervisor

lol.

 

[MH.Yang]

I think a slow decline is manageable. Especially when property is so overpriced in Chinese first-tier and second-tier cities.

Our real estate prices and transaction volumes have stabilized and the biggest economic bomb has been successfully defused.

Our economy has also begun to return to its normal growth rate, with GDP expected to increase by 7.6% to 8% in the second quarter.

GPI is back to 0.3%. We're basically out of the possibility of deflation.

 

[beijingwalker]

Well, yes, everyone can post here, but not whenyou reply me to something and then I challenge you and you pled the fifth, that's wasting people time

LOL, You can challenge everyone here but if people take your" challenge" seriously is another story. PDF is not a court house, lol

 

[jhungary]

I didn't realize that the two of you had been arguing for so long. I remind you of the difference between the two countries:

1, Chinese people like to save, they generally have a lot of savings, so they hate inflation more and don't mind prices going down.
Americans commonly have a lot of loans that need to be paid, so they prefer to see inflation and a decrease in the purchasing power of their currency.

2, China has nationalized land and every farmer has his own land. Migrant workers in China can go back to the countryside and farm their land even if they are unemployed. So the Chinese government is not overly concerned about unemployment.


BTW: Don't worry about China, our second quarter GDP growth has returned to 7.6% to 8%. Falling prices have not affected China's economic recovery from the epidemic.
You should worry more about the U.S. How long can the U.S. sustain such crazy interest rates?


View attachment 938250

View attachment 938249

We aren't talking about unemployment here. we are talking about inflation and deflation.

unemployment is another issue, it's related to economic health of a country, inflation/deflation is related to financial health of a country. Again, this is about capital flow, most country would want 1-3% inflation to have the financial system rolling. Because inflation stimulate spending and interject cash into market, which in turn finance the country and development.

LOL, You can challenge everyone here but if people take your" challenge" seriously is another story. PDF is not a court house, lol

Again, it's not, but that does not mean I like to waste my time on here.

You can go do your thing, I don't mind nor care, I care when you started to waste my time, you know that question coming a long way when you first reply my post, and you choose not to answer, hence wasting my time, and what's wrong with being dislike on someone wasting my time?

 

[beijingwalker]

Again, it's not, but that does not mean I like to waste my time on here.

Lol, it's up to you, no one forced you to