How the Fed Helped Create the China Bubble—and Bust \ stacker news ~econ

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How the Fed Helped Create the China Bubble—and Bust mises.org/mises-wire/how-fed-helped-create-china-bubble-and-bust

151 sats \ 8 comments \ @Undisciplined 22 May 2024 econ

By Brendan Brown

The Federal Reserve has repeatedly been a key component in boom and bust events in the global economy since the 1920s. China is the latest example.

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21 sats \ 6 replies \ @bitties 22 May 2024

Another currency falling that I didn’t notice.

20 sats \ 5 replies \ @Undisciplined OP 22 May 2024

I had followed some of the economic collapse in China, but I hadn't really thought about the Fed's potential role in it.

It certainly makes sense that the Zero Interest Rate Policy caused speculators to yield chase all over the place, including China. Once interest rates finally went back up, there was a lot less upside to speculating in risky environments, so that capital came back to the US.

21 sats \ 4 replies \ @bitties 22 May 2024

Do you have any numbers? I’m just genuinely curious how much capital.

10 sats \ 3 replies \ @Undisciplined OP 22 May 2024

I'll tag @TomK, since he's been posting about Chinese capital flight and I don't know the figures off-hand.

41 sats \ 2 replies \ @GhostofTruth 23 May 2024

I have attached a trustworthy article from Germany. they come to the conclusion that currently about 2 billion euros are being withdrawn from China every month. since August about 26 billion euros. https://www.kettner-edelmetalle.de/news/kapitalflucht-aus-china-investoren-verlieren-das-vertrauen-02-02-2024