Consumer prices in China dropped 0.3% month-over-month in October, while annual inflation crawled at just 0.3% - below the expected 0.4%. The world's second-largest economy is showing concerning signs of deflation, with only food prices bucking the downward trend.

The perfect storm: aging population meets Keynesian monetary policy requiring constant inflation to roll forward massive debt. The Communist Party's heavy-handed market interventions, especially visible in the real estate sector, have burst asset bubbles and wounded balance sheets across the banking sector.

Experts suggest Beijing needs massive stimulus measures to restart their economic engine - far beyond current interventions.