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China's October new lending tumbles more than expected despite policy supportwww.reuters.com/world/china/chinas-october-new-lending-tumbles-more-than-expected-despite-policy-support-2024-11-11/
666 sats \ 2 comments \ @k00b 8h econ
New bank lending in China tumbled more than expected to a three-month low in October, as a ramp-up of policy stimulus to buttress a wavering economy failed to boost credit demand.
Chinese banks extended 500 billion yuan ($69.51 billion) in new yuan loans in October, down sharply from September and falling short of analysts' expectations, according to data released by the People's Bank of China (PBOC).
Household loans, including mortgages, dropped to 160 billion yuan in October from 500 billion yuan in September, while corporate loans dipped to 130 billion yuan from 1.49 trillion yuan, according to Reuters calculations based on central bank data.
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0 sats \ 1 reply \ @justin_shocknet 7h
You know how if an airplane moves forward too slow, therefore not generating enough lift, it just falls out of the sky- stall speed?
Fiat is kind of like that, either point the nose down to gain speed (print), or stall into a deflationary doom loop that ends the system.
Feels like China and the US are both flirting with it since there's not much room to point the nose down, but if we know that then they know that, so it begs the question what's next on the procedure list.
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0 sats \ 0 replies \ @Solomonsatoshi 6h
Fiat money works extremely well to accelerate an economy that is structured and positioned to grow. It does not work so well if an economy is not so structured. Where fiat money/capital debt issuance is directed into productive assets and infrastructure and that infrastructure delivers a return over time fiat makes sense and grows wealth. This is what China has been doing for the last 40 years. The proof is in serial and exponentially growing trade surpluses. Where fiat is used to pump consumption and already existing asset prices it is being squandered and only creates a false and temporary sense of wealth, while building a toxic legacy of parasitic debt. This is what the neoliberalised west has been doing for 40 years. The evidence is in exponentially growing trade and fiscal deficits. Understand the difference if you can get over your US exceptionalist, Libertarian cultural biases and self serving hype.
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