After mastering the art of inflating property bubbles, China's economic strategists are rolling out their next masterpiece. A stimulus package potentially exceeding 10 trillion yuan is in the works, proving once again that when it comes to artificial market inflation, Beijing plays in the Champions League of bubble creation.
The National People's Congress Standing Committee is orchestrating this latest economic performance, with special-purpose bonds serving as their conductor's baton. It's a familiar tune: pump liquidity, inflate assets, repeat – but this time with a global twist, as timing aligns strategically with the US presidential election.
Key movements in this economic symphony:
- Annual central government debt conducting at 2 trillion yuan
- Special-purpose bonds orchestrating up to 4 trillion yuan over 5 years
- Consumer stimulus arrangements worth 1+ trillion yuan
- Package size flexing based on US election outcomes
While the 2008 stimulus (13% of GDP) created a property market frenzy that would make tulip mania blush, this time they're promising a more "measured" approach. But as history shows, when China decides to inflate an economic balloon, it doesn't just blow – it soars.
The irony isn't lost: after dealing with the aftermath of their property bubble, they're reaching for the pump again. Different bubble, same playbook.