24-07-2023, 10:36 AM
Liking this week after Fed hike rates likely last rate hike.
The Fed will have a period of inaction as it watch the many rate hikes slow the US economy and attempt To softlamd at end of the year by easing ...so nothing will happen from now until year end.
this leaves China'hs PBOC as the only game in town with flexibility to do something and rook to act.
Short term boost is very simple ...just jnject $$ and do infrastructure
But if anything works long term it has to sustain consumer spending, foreign investments comjng in and exports.
2 out of 3 depends on foreigners having confidence in China and foreign markets doing well to buy Chinese Exports.
Technically the Chinese consumer has a long runway because the per capita GDP in China is low and has head room.
When Japan start it's lost decade it was already a high income nation.
China has many structural issues from which it can gain by fixing them....and undoing draconian restrictions on private education and online platforms will help to boost the economy.
The Fed will have a period of inaction as it watch the many rate hikes slow the US economy and attempt To softlamd at end of the year by easing ...so nothing will happen from now until year end.
this leaves China'hs PBOC as the only game in town with flexibility to do something and rook to act.
Short term boost is very simple ...just jnject $$ and do infrastructure
But if anything works long term it has to sustain consumer spending, foreign investments comjng in and exports.
2 out of 3 depends on foreigners having confidence in China and foreign markets doing well to buy Chinese Exports.
Technically the Chinese consumer has a long runway because the per capita GDP in China is low and has head room.
When Japan start it's lost decade it was already a high income nation.
China has many structural issues from which it can gain by fixing them....and undoing draconian restrictions on private education and online platforms will help to boost the economy.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.