Beijing's top brass have hit the panic button, calling an emergency Politburo meeting to discuss economic bailout plans. This move highlights the growing desperation to prop up a faltering economy in the face of mounting headwinds. The Communist Party's elite decision-makers are promising more fiscal and monetary support, just days after the central bank unleashed the next stimulus package.
But here's the kicker: China's debt-fueled growth strategy is running out of steam. As the government keeps pumping money into the system, private sector productivity continues to plummet – a classic Keynesian trap. The dragon's roar is becoming more of a whimper, and it's unclear how long they can keep this economic house of cards standing.
