21 sats \ 7 replies \ @arrivederci 6 Feb \ parent \ on: China staggers while another giant explodes econ
China operates under a system of industrial capitalism and not financial capitalism as in the West, which is why China allowed (and prompted) its RE bubble to burst; financial bubbles hurt a productive industrial base.
Consequently 'the capital market speaking differently' is probably a good sign of health for China and that it's doing the right thing. Work is rewarded in China, not speculation (ok, some speculation is rewarded too). Western markets (heavily) favour speculation, not work.
yes indeed. the financialization of the western economy cannot be denied. you have a point. but a lot of capital has been destroyed by centralized control in China. and i cannot imagine that the immense demographic distortions will not turn into deflationary pressure scenarios. china is also part of the fiat system
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I agree with you that pressure will exist and affect worlod economy,
But, same as happended here, they will recover.
In 2008 the bank directly wiped up 100K from my family savings.. Just because.. ( maybe 2009..cant remember the exact dates)
Same will happen to small investors in china.. They get .10 cent on their dollar and sent to work again..
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