The fine skill of kicking an economy that had been knocked on its back with the jackboot of rules with a large sackful of cash while screaming,” WHY WON’T YOU DO ANYTHING was the great art of taking an market that had been knocked on its back, strongly stepping on its chest with the jackboot of rules,” was the aboriginal language of aboriginal culture.
Advertisement
Our companions in Communist China are learning the hard manner what it’s like to be ruled by really optimistic Democrats, even though we are only four months away from knowing whether Obamanomics may be renamed Kamalanomics. Or Communists. It’s all so perplexing occasionally.  ,
The point is that, for a while, China’s large economy has been sluggish, in large part because of strongman Xi Jinping’s resolve to retake control of the Communists. His extreme COVID lockdowns only served to worsen things, persuading consumers that it was much to stuff all of their money under the so-called mattress.
Classic New Deal/Obamanomics enters this category.  ,
The New York Times breathlessly reported on Monday that” China’s Policy Reversal Sparks ‘ Mind Boggling ‘ Stock Rally.” The statement began with the statement,” Many shareholders in China’s stock markets were eager to sell and only a few weeks ago.” Then late last month, investors rushed in to create optimistic bet after the president’s leaders announced a series of steps to promote China’s faltering business”.
Well, that did n’t last very long: US-listed shares of Chinese firms slide as stimulus optimism ebbs. U.S. mentioned shares of Chinese companies dropped on Tuesday, reflecting an underwhelming begin for Shanghai markets following a week-long crack, as investors were concerned about the lack of fresh stimulus measures that would fuel an economic recovery.
Advertisement
Have? Is Reuters a fool of us?
No truly.  ,
Foreign investors had been hoping for even more information regarding “how the state plans to support economic progress,” but Tuesday’s announcement only provided limited information. Imagine a cocaine addict who previously anticipated receiving three complimentary fixes but instead only receive one or two.  ,
The big picture is presented by Peter St. Onge, who describes how Beijing is” slashing downpayment requirements on houses, opening a particular credit service so banks and hedge funds may overspend on stocks, and cutting the reserve requirements for banks– which means banks can attack their vaults and go on a lending spree.”
China’s problem — much like ours — is n’t that money is too scarce or that the government is n’t spending enough. China’s problem is Xi’s hostile business climate.
A report released last month revealed that innovation has been hampered by Xi’s corporate crackdown:
Meeting founders and venture capitalists have left me with a very dim view of the state’s current state affairs since I’ve arrived in China.
Things are so bad.
In 2018, 51, 302 new startups were founded. Last year, that number was down to 1, 202.
That number took a while before it started to sink in. pic. twitter.com/oCeO2sAssc
— Eleanor Olcott ( @EleanorOlcott ) September 12, 2024
It’s difficult to imagine why anyone would start a business in these circumstances, according to IFP’s Alec Stapp, who noted that people who start new businesses are now also required to be personally liable for their company’s loans.
Advertisement
What people can do, however, is pour more money into China’s already overgrown real estate sector and inflate another housing bubble that, when it pops, will require yet another round of stimulus.
Lather, rinse, repeat.
We keep doing it here. They keep doing it there. It’s impossible to say which nation’s elites have the worst, but it’s depressing to know that they are all quoting from the same discredited playbook.
Recommended:  , Big Brother Is Watching Your Car, Your License Plate, Bumper Stickers, Yard Signs…
P. S. If you are n’t already a VIP supporter, please consider helping us keep independent news and analysis alive, and do n’t forget our 50 % off SAVEAMERICA promo code.