The difference is that when Japan stagnate it was a high income economy. China is in the middle income trap. The average chinese salary is rising very much and the lower income countries have higher GDP growth.
⛔ A USA inefficient production...produce under capacity, therefore INFLATION. CHINA efficient production...produce OVER CAPACITY, therefore DEFLATION. I WISH WE HAD DEFLATION IN THE USA! my FIAT dollar would be worth something!!!
@@seymorefact4333 The current deflation in China, in my view, is more closely tied to confidence. When people are optimistic about the economic outlook, they are willing to spend; conversely, a lack of confidence leads to reduced consumption. The government needs to adopt more comprehensive measures to boost confidence and alleviate the anxiety caused by the decline in the property market.
@@lahongjoanne Inflation is NEVER good. It robs you of saving for the future. Thus, why we are using more credit cards to buy goods. That's not confidence. US greatest growth period is during deflation in the early 20th century. Ran efficiently therefore, you only need one income to live well. Inflation lead to working till you die and defaults.
@@lahongjoannemy understanding is that there is a truly massive over supply of property as it’s the only or at least was seen as easily the best and safest way of saving money and preserving wealth for the average Chinese person as such they collectively invested overly (massively) in extra property under the foolish belief that property prices and value only go up! When you have any oversupply (especially this large) at a point in time that you have a decreasing population then those prices can in real terms only go down once speculation is removed hence the loss of 16-18 trillion dollars from private wealth
Chinese proverb : 'He who tied the knot is the one who knows how to untie it". The developed countries brought up this monster in the 1990s and 2000s, now the monster had grown wings and is biting the hands that fed it. We are witnessing mass withdrawal of investment and closure of factories in China due to those countries awakening to the fact that their own businesses are on the verge of collapse thanks to China's aggressive trade invasion, all I have to say is KARMA
Wow, what an toxic conclusion you’ve drawn. China, the only superpower that has never invaded other countries for fortune or territory, has a natural right to develop in its own way. How does this development suddenly equate to “growing wings and biting the hand that fed it”? Your words and actions bring to mind an old Chinese proverb: Officials are allowed to set fires, but commoners aren’t even allowed to light lamps. Perhaps it’s KARMA that now you must face a stronger, enduring Chinese Loong. China is no longer weak. Open your eyes wide and look at the world objectively.
@@lahongjoanne because china had never had the ability to do so. Dont act like expansion has never been in the mind of chinese rulers. We can see this happening in the modern day with all of the border struggles and island grabbing China does, bullying its neighbors now that it was found itself to be the biggest kid on the block now
@@danielbenner7583 He meant export orientation of China and Japan are different. China focused on export to Global south now. Btw, China's economy is based on capitalism as well.
@@MrJermsonthere basically the same manufacturing export countries at there prime. China just have more knowledge on the expense of japanese failure. I believe in 90s and 80s Japan was poise to overtake US in terms of GDP which is insane considering how small japan is compare to US.
@Beresunablle unlikely for Japan to overtake USA at that point of time. I lived thru that era. There were clear signs of overheating economy in Japan especially in the properties market. As long as your country's military defence is beholden to another country, you will do as your defence master dictates. Japan's export driven economy was dumping goods into USA. The undisputed leader will never allow his challenger a free ride into power. China might have the hindsight advantage of Japan's fall as a lesson but know is one thing, solving it is another matter. As long as greenbacks is the global currency and USA's military might are unchallenged, no country can take its place.
Good point, China mostly like Soviet Union system But Have Chinese themselves smart, So this cause China private company very high expand. But Nationalization company more like Soviet Union. this why nations well be fail.
Lower yields on 10 year bond means the demand for the said bonds is increasing or that the risk due to inflation is decreasing. Bond yields depends in investors' confidence on how they percieve inflation affects the value of their investments, and not investors going to other investments.
The economy is for sure not doing so good, but one needs to consider China's situation as world's factory and its vast (over)capacity to produce goods. Prices are stagnating in China, and a good reason for that is China produces literally everything self and that businesses had good margin before, now they just need to make do with lower margins. This would not be possible in another country. Japan was like China with very little inflation, now inflation starts to creep up there precisely because Japan no longer produces everything itself and starts to run trade deficit.
There are analysts who believe that the population of China is a lot lower than the Chinese government admits. Many people died during Covid. If this is true, I wonder if the deflation might be caused by the dwindling population.
Great content, as always! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?
When there is deflation, interest rate goes down then it is cheaper to service the debts. Also when production scale goes up, it will help the price to go down. When price go down then it will encourage more people to consume.
On the other hand, production in China has outpaced demand, leading to growing inventories. Investors are holding onto their funds, waiting for opportunities to invest in more profitable markets.
not really, I live in China and jobs are incredibly unstable that people is afraid to spend money, I've seen in my workplace 70% of the staff being laid off. I don't care if the new 5000rmb phone is selling with 30% discount, I ain't spending money on phones, restaurants, traveling until my job situation improves, I just buy groceries and basic neccesities and I am sure millions are doing it as well causing this deflation, seems there's no way to get out of this, many companies are selling products at a cost or even at a loss and still struggling
Is growing at a fast rate always better than growing slowly? Faster does not always means better. The next time you have a surgery, will you want a doctor who can work the fastest or someone who can do it correctly and safely?
The holding off on purchases hoping prices will continue to fall fallacy is the most successful con the banks/money printers ever pulled off to denigrate deflation. People spend when they can afford to and they don't when they can't afford to. Deflation helps you, a consumer's, pockets. Inflation causes people to scrimp on spending. Think about it for 2 seconds.
This is often true in developing economies, where inflation is constant...or at least, local currency depreciation is constant. So if you have dollars, best to buy now, because the price in dollars will always be less later....but with rising inflation, it'll be even more expensive. I suppose this is why carry trades work. Insiders know ahead of time and can plan accordingly.
This video is wrong in so many levels… Exporting countries (like China and Japan) benefits from low prices… importing countries benefits from (China, Japan) low prices..
China now a days problems. Where we know when products are over produced then deflation take place in market. or when less product producing less then need inflation so China's government producing more reliable small business structure where products are made by according to needs not more as no need make more so china have already so strong strict government structure they are also big economy they can easliy control it. Because they have big population market.. Great China ⛩️🇨🇳
Debt to price ratio is less important than debt to gdp growth. China's economy is growing at 4 to 5% per year, and can afford to increase debt through stimulus packages as it is doing now.
⛔ A USA inefficient production...produce under capacity, therefore INFLATION. CHINA efficient production...produce OVER CAPACITY, therefore DEFLATION. I WISH WE HAD DEFLATION IN THE USA! my FIAT dollar would be worth something!!!
your analysis is totally wrong, your fundamental perspective is based on western economic model which is flawed to the core. Japan and China macro economic model is not the same as capitalist western world, western model will naturally build a plutocratic world where wealth gap will forever be wider unless there is radical active intervention. China & Japan economic model is by far the best in the world on managing wealth gap.
"The bottom 50% earns about 15% of total income in China versus 12% in the U.S. and 22% in France. However, China's top 10% wealth share (67% in 2015) is getting close to that of the U.S. (72%) and is much higher than in a country like France (50%)." - Google "household wealth inequality in China was much greater and more severe than income inequality" - Also google TL:DR - Chinese keyboard warriors are clowns that shame themselves, their families and their nation through aggressive ignorance.
@@zacklewis342Deflation being bad is a western narrative because the West cannot grow without debt issuance. In fact most western nations no longer produce any meaningful growth even with debt issuance. The sole exception of which is the US, which is only growing thanks to being able to print the global reserve currency.
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Do you think China's government should fix this deflation problem?
I think the Philippines should fix its poverty problems first.
China should reset the government & let the poeple actually choose who should administer the nation.
@@tradefortutara9608it's not democracies same in America also because left and right faction is deep state all the same with different priority
@@tradefortutara9608 that would cause even more chaos as it is and probably weaken the nation jack fruit
@@tradefortutara9608that would cause even more chaos as it is and probably weaken the nation jack fruit
The difference is that when Japan stagnate it was a high income economy.
China is in the middle income trap.
The average chinese salary is rising very much and the lower income countries have higher GDP growth.
⛔ A USA inefficient production...produce under capacity, therefore INFLATION. CHINA efficient production...produce OVER CAPACITY, therefore DEFLATION. I WISH WE HAD DEFLATION IN THE USA! my FIAT dollar would be worth something!!!
@@seymorefact4333 The current deflation in China, in my view, is more closely tied to confidence. When people are optimistic about the economic outlook, they are willing to spend; conversely, a lack of confidence leads to reduced consumption.
The government needs to adopt more comprehensive measures to boost confidence and alleviate the anxiety caused by the decline in the property market.
@@lahongjoanne Inflation is NEVER good. It robs you of saving for the future. Thus, why we are using more credit cards to buy goods. That's not confidence. US greatest growth period is during deflation in the early 20th century. Ran efficiently therefore, you only need one income to live well. Inflation lead to working till you die and defaults.
@@lahongjoannemy understanding is that there is a truly massive over supply of property as it’s the only or at least was seen as easily the best and safest way of saving money and preserving wealth for the average Chinese person as such they collectively invested overly (massively) in extra property under the foolish belief that property prices and value only go up! When you have any oversupply (especially this large) at a point in time that you have a decreasing population then those prices can in real terms only go down once speculation is removed hence the loss of 16-18 trillion dollars from private wealth
Another excellent video. This channel is a real gem on RUclips, and I’m so glad I found it. Keep up the great work!
Chinese proverb : 'He who tied the knot is the one who knows how to untie it". The developed countries brought up this monster in the 1990s and 2000s, now the monster had grown wings and is biting the hands that fed it. We are witnessing mass withdrawal of investment and closure of factories in China due to those countries awakening to the fact that their own businesses are on the verge of collapse thanks to China's aggressive trade invasion, all I have to say is KARMA
Wow, what an toxic conclusion you’ve drawn. China, the only superpower that has never invaded other countries for fortune or territory, has a natural right to develop in its own way. How does this development suddenly equate to “growing wings and biting the hand that fed it”?
Your words and actions bring to mind an old Chinese proverb: Officials are allowed to set fires, but commoners aren’t even allowed to light lamps. Perhaps it’s KARMA that now you must face a stronger, enduring Chinese Loong.
China is no longer weak. Open your eyes wide and look at the world objectively.
@@lahongjoannei mean they only try to invade everyone of their neighbors for the last 4000 years or so - so i have to call your conclusion bs.
@@lahongjoanne because china had never had the ability to do so. Dont act like expansion has never been in the mind of chinese rulers. We can see this happening in the modern day with all of the border struggles and island grabbing China does, bullying its neighbors now that it was found itself to be the biggest kid on the block now
@@lahongjoanne let's look at all of China's disputes with its neighbors lmao
@@lahongjoanneChina has tried to invade other countries. Just google.
China and Japan are totally to different economies ,Japan follows western model while china focusing on south countries
Technically, communism is a western model, too.
@@danielbenner7583 He meant export orientation of China and Japan are different. China focused on export to Global south now. Btw, China's economy is based on capitalism as well.
@@MrJermsonthere basically the same manufacturing export countries at there prime. China just have more knowledge on the expense of japanese failure. I believe in 90s and 80s Japan was poise to overtake US in terms of GDP which is insane considering how small japan is compare to US.
@Beresunablle unlikely for Japan to overtake USA at that point of time. I lived thru that era. There were clear signs of overheating economy in Japan especially in the properties market. As long as your country's military defence is beholden to another country, you will do as your defence master dictates. Japan's export driven economy was dumping goods into USA. The undisputed leader will never allow his challenger a free ride into power. China might have the hindsight advantage of Japan's fall as a lesson but know is one thing, solving it is another matter. As long as greenbacks is the global currency and USA's military might are unchallenged, no country can take its place.
Good point, China mostly like Soviet Union system But Have Chinese themselves smart, So this cause China private company very high expand. But Nationalization company more like Soviet Union. this why nations well be fail.
Lower yields on 10 year bond means the demand for the said bonds is increasing or that the risk due to inflation is decreasing. Bond yields depends in investors' confidence on how they percieve inflation affects the value of their investments, and not investors going to other investments.
When you spot a Free, the whole country tries to fight to take the Free
The economy is for sure not doing so good, but one needs to consider China's situation as world's factory and its vast (over)capacity to produce goods. Prices are stagnating in China, and a good reason for that is China produces literally everything self and that businesses had good margin before, now they just need to make do with lower margins. This would not be possible in another country. Japan was like China with very little inflation, now inflation starts to creep up there precisely because Japan no longer produces everything itself and starts to run trade deficit.
There are analysts who believe that the population of China is a lot lower than the Chinese government admits. Many people died during Covid. If this is true, I wonder if the deflation might be caused by the dwindling population.
Great content, as always! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?
It's always jarring when people talk about economic indicators as a mechanism.
When there is deflation, interest rate goes down then it is cheaper to service the debts. Also when production scale goes up, it will help the price to go down. When price go down then it will encourage more people to consume.
On the other hand, production in China has outpaced demand, leading to growing inventories. Investors are holding onto their funds, waiting for opportunities to invest in more profitable markets.
Wrong. And you can see that it's wrong. Prices are down, and consumption is also down.
not really, I live in China and jobs are incredibly unstable that people is afraid to spend money, I've seen in my workplace 70% of the staff being laid off. I don't care if the new 5000rmb phone is selling with 30% discount, I ain't spending money on phones, restaurants, traveling until my job situation improves, I just buy groceries and basic neccesities and I am sure millions are doing it as well causing this deflation, seems there's no way to get out of this, many companies are selling products at a cost or even at a loss and still struggling
China is Japan 1989. Totally agree.
This channel is quite impartial, presenting analysis and views fairly.
A China no pueden comparar con la situación de Japón, son casos totalmente diferentes
PRC GDP growth were mostly funded by debt in last 5 years. The growth is unnatural so that real economy of civilians didn't improve much
That Chinese growth is now gone. Worldwide depression coming up. 😮
Correct
王新豫大学毕业后，受父亲的影响，到新疆来参军，当时抱着很积极的态度，以为找到了一条理想的人生出路。但部队里官僚气息非常浓、买官卖官，每天要“学习强国”被控制着，王新豫后悔了。近期，他在退党网站声明退出中共组织，并表示：“‘变天’之前，需要武装力量的时候，我将付出我的一份力量！”
王新豫说：“我们这里买卖军官，更是家常便饭了。渐渐地，我有些后悔了，因为在部队里，官僚气息非常浓，跟我来之前想到的大不一样。军队里的任何部门，都是要受共产党操控的。这几年来，本来以为‘小熊维尼’上台之后，事情能有所改变，没想到共产党变得越来越血腥和没有人性了。”
“去年，我在国外的网站上看到了共产党对退伍老兵的打压，但是这些消息，国内的媒体，从来都不报道。我当时立即就觉得自己前途暗淡了，因为我不知道像我这种士兵，如果将来退伍后回到地方，是不是也像他们这样受到共产党的摧残。其实，谁为共产党卖命，都没有好下场的。”
“上级领导要求我们每人必须在手机瑞安装‘学习强国’APP，而且每天都必须要拿出大部分时间来刷这个软件，如果不刷或者学习不认真，将会受到处分。这不是明摆着，共产党想控制我们嘛。据说，‘学习强国’这个软件是个间谍软件，只要安装在手机里了，你的通话记录、短信记录、联系人信息等等，都将会被共产党掌控。”
“这个‘学习强国’软件每天就要占用我大部分生活时间，渐渐地，我发现周围朋友都开始疏远我了，我才逐渐意识到，这其实都是被共产党害的！”
“本人今天郑重声明：从此永久退出中国共产党的一切组织，并在‘变天’之前，需要武装力量的时候，我将付出我的一份力量！”
Is growing at a fast rate always better than growing slowly? Faster does not always means better. The next time you have a surgery, will you want a doctor who can work the fastest or someone who can do it correctly and safely?
The holding off on purchases hoping prices will continue to fall fallacy is the most successful con the banks/money printers ever pulled off to denigrate deflation. People spend when they can afford to and they don't when they can't afford to. Deflation helps you, a consumer's, pockets. Inflation causes people to scrimp on spending. Think about it for 2 seconds.
Lol, your ignorance is hilarious.
This is often true in developing economies, where inflation is constant...or at least, local currency depreciation is constant. So if you have dollars, best to buy now, because the price in dollars will always be less later....but with rising inflation, it'll be even more expensive. I suppose this is why carry trades work. Insiders know ahead of time and can plan accordingly.
That's why Chinese stuff is so cheap. Great deals, if stuff doesn't need to last very long.
This video is wrong in so many levels… Exporting countries (like China and Japan) benefits from low prices… importing countries benefits from (China, Japan) low prices..
If there was inflation of 0.2% in November, that wasn’t deflation. Deflation means prices fall, not that they rise slowly.
China now a days problems. Where we know when products are over produced then deflation take place in market. or when less product producing less then need inflation so China's government producing more reliable small business structure where products are made by according to needs not more as no need make more so china have already so strong strict government structure they are also big economy they can easliy control it. Because they have big population market.. Great China ⛩️🇨🇳
China is basically like Japan, but without social services.
prabowo ch jp kr
when china economy being normal western people uhh they have economic problems, we need to fix them, lol
It's only a sign of a normal slowdown
Debt to price ratio is less important than debt to gdp growth. China's economy is growing at 4 to 5% per year, and can afford to increase debt through stimulus packages as it is doing now.
⛔ A USA inefficient production...produce under capacity, therefore INFLATION. CHINA efficient production...produce OVER CAPACITY, therefore DEFLATION. I WISH WE HAD DEFLATION IN THE USA! my FIAT dollar would be worth something!!!
Still better than crawling to USA .
your analysis is totally wrong, your fundamental perspective is based on western economic model which is flawed to the core.
Japan and China macro economic model is not the same as capitalist western world, western model will naturally build a plutocratic world where wealth gap will forever be wider unless there is radical active intervention.
China & Japan economic model is by far the best in the world on managing wealth gap.
hahahahahaha
The wealth gap in China is growing.
"The bottom 50% earns about 15% of total income in China versus 12% in the U.S. and 22% in France. However, China's top 10% wealth share (67% in 2015) is getting close to that of the U.S. (72%) and is much higher than in a country like France (50%)." - Google
"household wealth inequality in China was much greater and more severe than income inequality" - Also google
TL:DR - Chinese keyboard warriors are clowns that shame themselves, their families and their nation through aggressive ignorance.
No such thing as the "western economic model" any more than there is western math or western physics.
@@zacklewis342Deflation being bad is a western narrative because the West cannot grow without debt issuance.
In fact most western nations no longer produce any meaningful growth even with debt issuance. The sole exception of which is the US, which is only growing thanks to being able to print the global reserve currency.
Inflation deflation stagflation