Comment by specialp
1 day ago
China has a huge deflation problem that they export to the world via cheap products. They have a lot of capacity and not enough consumers. So in China, an unstated mild Keynesian approach makes sense. They can sweep debt under the rug and take in inflation from net debtor countries
Which on the one hand is great because through that China exports material wealth to the world.
At the same time production capacity outside of China has to compete with this "rigged" system, which is near impossible to do.
Falling prices, sounds like the way things should be as real technology and markets develop. Inflation is not natural.
Only a capitalist high on stocks can convince you that falling prices are bad. I, for one, welcome these falling prices. I thought inflation was the problem?