Europe has been using the fiscal bazooka for 50 years and the results are there: spectacular disaster. China is a developing country with the leverage of an advanced economy as a result of malinvestments. The only way to cure real estate crisis is to follow the Swedish template of the nineties….cleanse the system as soon as possible and don’t kick the can down the road with the hope of a recovery. By the way there is nothing wrong with a healthy deflationary cycle….other than the CCP can’t afford it politically.
Europe has been using the fiscal bazooka for 50 years and the results are there: spectacular disaster. China is a developing country with the leverage of an advanced economy as a result of malinvestments. The only way to cure real estate crisis is to follow the Swedish template of the nineties….cleanse the system as soon as possible and don’t kick the can down the road with the hope of a recovery. By the way there is nothing wrong with a healthy deflationary cycle….other than the CCP can’t afford it politically.
Stockflation :)