I'm not kidding when I say trying to understand China will have your head spinning in circles. The country does some of the wildest things across the board and while that might be bad in most cases it can end up leading them ahead in areas for taking those chances.

See China is a bit of it's own thing and people in the US for example can't wrap their head around (even though they should) that their government would hold their money, put expirations on their money, inflate their currency and so forth just to try and get ahead. And trust me the worlds heating up in this Easy vs West system right now and it's going to start causing some major issues. I guess this is what you get when you try to buddy up to a country that's been saying they are going to take you over or beat you in the cold war. Yeah countries hold grudges too and the US should take that to heart because it's not all peaches and sunshine out there and the USA has become complacent for far too long.

Yes, here's what's crazy is China was a pile of crap country until the 1980's when we signed a trade relation with them. Now 30 years later after all of that investment of money into the country they act up and want to take over the world it seems. Super ass annoying if you ask me. There's a difference between controlling a country and then outright taking it over lol.

China Real Estate

Ah the bubble of all bubbles which still seems to be slowly bursting. What happened in China was that real estate became one of the most popular places to park your money for safe keeping. This caused people to own many homes and places just to hold value which the population was still eager for more. This inflated prices like crazy to the point where they where selling "pre built" homes and buildings to others before even laying any of the groundwork!

This exploded when it was found out the level of corruption happening in the housing sector in which there was no plans to ever build these buildings or to build them in such cheap quality while the company pocketed all of the money and shipped it out of country.

Remember 2021 and evergrande? Well that spiraled into many other real estate companies going belly up.

Unemployment

With growth in China they started to push their youth into higher education in order to "increase the value" of their workforce. The issue is China simply doesn't have enough jobs for these types of workers. Their powerhouse came from and kind of still is today extremely low wage mass factory work. Of which they then abused by imposing taxes, tariffs and nearly blackmailing or offers up subsidies to companies if they benefited China which is a huge no no when you join the world economic affairs.

This has caused unemployment in China to actully be crazy high. It's speculated it could be as high as 20%. Now news reports will tell you it's around 5% now but that's mainly because China changed the way that they "calculate" unemployment. Yeah you gotta love it if the government doesn't like a number we just find a different way to calculate it that looks better. and don't get me wrong it's not just China that does this so take those reports you see like CPI numbers etc with a grain of salt because if you dig into it for real you'll find a much clearer picture.

Deflation

Deflation in China is currently ramping up like crazy. Sure it sounds great that your money is worth more compared to inflation it actully has a very negative effect on your countries economy as people want to hold on to more of their money instead of spend it because it's increasing in value. This then causes less demand on everything which scales back production, which then means you need less workers, which then means less money to go around and honestly just scritches the economy to a near halt with jobless rates super high and the economy GDP in the toilet.

Bazooka Stimulus

All of this is turning into a last ditch effort it seems like by China to reinvigorate the economy and it's know as the "bazooka stimulus" lol I love the name because that's exactly what it is. Those little hand out stimulus payments in the USA are pennies compared to what China is doing.

Part of that is with Banks where 112.6 billion was approved to fund banks to inject money into their stock market.

The fun part of this is this pins China back into the real estate issue they had just 2-3 years ago in which they are now offer up loans for people to go buy second homes once again by nearly cutting mortgage rates on second homes in half.

Chinas government is also pushing for another 1.4 trillion dollar plan worried that the economy is about over. A huge kicker though is that banks were given a cut in terms of how much money they have to keep on hand. For example in the USA the banks are only required to hold 10% while the other 90% is open for lending. Meaning if all the people at that bank wanted to take out 15% of their funds at the same time the bank wouldn't have the money.

I wasn't able to find out what Chinas number is but I speculate it's pretty low already and they are now talking about reducing it once again to inject more liquidity into the system. China bank run again? we all know how that went last time...

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