I find the capitalists' deflation rhetoric around China to be hilarious; the capitalists are mad that Chinese housing prices are going down, even though that's a good thing for the working class and low income people.
China has had inflation for quite some time, a short period of deflation is only going to give back some of the purchasing power of the working class lost due to inflation.
A central problem for Beijing is that the weakness in the domestic economy has coincided with a plunge in the country’s exports, as inflation in the west suppresses consumption.
Yea and thats exactly why China has been moving away from export lead growth. Relying on foreign markets is not good long term because you are depending on others keeping capitalism induced crises at bay.
China’s statistics bureau said food prices dropped by 1.7 per cent in August compared with a year earlier and non-food prices increased by 0.5 per cent.
Again, capitalists consider cheaper food to be bad while in Europe, food inflation is only just now starting to slow down.. Like if bread prices go from $10 to $15 in a month and 'only' increases to $17 the month after, that's still $7 lost for the working class, if the wages doesn't rise accordingly, the real wages only go down.
China’s disappointing growth and falling exports have sparked foreign investor outflows from its stock markets and contributed to a weakening of the renminbi to lows against the dollar not seen since 2007.
Oh no not foreign outflows!! Renminbi has had one of the lowest depreciation against the dollar compared to other other currencies. Compare that to Euro or Pound which struggled under high inflation and the Ukraine war throughout 2022.
China has more than enough foreign exchange reserves accumulated over the years (highest in the world) from trade surplus to defend renminbi if it falls too hard; its banks are under state control which prevents them from betting against their own currency.
In fact, thats exactly what China is doing.
https://www.ft.com/content/badf9bd8-c6ac-47c9-a2be-1dd9084e6ba0
“We will act when we act, resolutely correcting one-sided speculation,” the central bank added, referring to mounting bets against the currency’s dollar exchange rate driven by a string of underwhelming economic readings as China’s economy struggles to regain momentum.
Traders said the rhetoric from the central bank was much stronger than usual and that state-run banks, which have frequently supported the Chinese currency this year through purchases on the open market, were more actively buying up renminbi in exchange for dollars on Monday.
Capitalists only care about growth. They are really looking for handouts from the Chinese government but I think China isn't doing it because it doesn't want the same capitalists to take the money out of the country to the home of capitalism that is the U.S.
Deflation
Jesus, I see what you’ve done for other people, and I want that for me.