Comment by refurb
18 hours ago
There is no free lunch. Debt in China is still owed to someone. Printing money creates inflation. Oversupply leads to deflation.
It’s why China’s real estate company debt is dragging down the economy as a whole. It’s all connected.
China very much is held to the same rules as the US, especially as it engages with the global financial system.
Which is why they are in so much trouble. The economy is anemic. The last stimulus package barely made a difference. Debt overhang remains.
There actually literally is a free lunch. Debt owed to the government by itself isn’t real. Assets and infrastructure are real.
It doesn’t matter how much you think China is in trouble financially, at the end of the day they still manufacture a third of everything in the world.