Prices can’t go down because then people get laid off, prices can’t go up, because people get laid off. I think the companies and their expectations of never ending profit increases are the problem
well, that's the nature of competition, you're supposed to want to increase profits. The problem in China is mostly that it's very corrupt, so lots of loans or money just keeps getting wasted in things that literally produce nothing, i.e. their chip manufacturing attempts.
@@GameFuMasterWe will be facing the same problem here in the US in the coming years. Eventually the government cant continue with $2t deficits year after year. The impending deflation (or perhaps stagflation), caused by previous wasteful government spending, will current inflation (as bad as it is) seem like a dream come true. This is what happens when you tamper with the natural balance of market. The point is: There is NO free lunch.
@@jonusjonus9271 possibly. But you forget that the US is the world's reserve bank. If something happens to it, it'll take the world down with it, kinda like 2008.
@@jonusjonus9271Most of the tampering and costs are giving corporations tax breaks and subsidies and incentives. That's the distortion of the market that's really going on, and it's to the detriment of the taxpayer, not the Corpos
The first two I'd agree with the, the last one is subjective in perspective of mindset. I know many who are homeless and in unbelievable debt and don't have a care in the world because they understand the money isn't real and there is nothing for the banks to take from them. Not saying that is a good thing, but again that depends on your viewpoint.
If it's not profitable for capitalist then they can't use that profit to employ people. Then they have pay cuts, layoffs and now everyone doesn't have a job.
Deflation makes car loans, mortgages, student loans, etc ridiculously expensive for normal people so no one can better themselves. The rich already control their money so they can afford to exploit a deflating economy by saving as much as possible instead of being forced to spend anything.
@@megapeiron Generally speaking - since inflation decreases purchasing power of money - capitalists, i.e. those that own the means of production, own vastly more non-currency assets than workers, and can thus weather inflation much better. That's why large economic inflations (like the 2008 crash) usually result in wealth being transferred from the working class to the capitalist class.
Who woulda thought that saving all your money and not reinvesting it is a horrible for an economy? That’s exactly why 2% inflation is ideal, it’s low enough for the currency to be stable, but high enough to encourage you to invest into assets.
I bet you are the same type of person cheering on empty home taxes, speculation taxes, foreign owner taxes, while crying about consumer staples inflation where you live Even with the hike in interest rates because of it they were looking at key unemployment figures Because those numbers were expected to jump up in order for that inflation to go down But for the longest time people were buying debt like US Sovereign debt at near zero bound interest rates. Basically people were paying the US Government to borrow their money 👇 The End of Zero Interest Rates Aug 13, 2023 JEFFREY FRANKEL As recently as 2022, most monetary economists expected interest rates to remain low indefinitely. While many analysts still expect near-zero interest rates to return, they will likely remain elevated for the foreseeable future, making it harder for governments to service their debts . CAMBRIDGE - What a difference two years make. In 2021, when interest rates were near zero in the United States and the United Kingdom and slightly negative in the eurozone and Japan, the consensus was that they would remain low indefinitely. Project Syndicate
everyone..if companies cant profit..whats their incentive to provide people with..anything? will you make your own electronics/clothing..grow your own food..nope..so if people keep waiting to spend & chasing the bargain bottom prices..backing companies into a corner..those companies cant afford to pay their workforce & build the products..thus have to fold..but his is all part of the reset & most people dont even realize we are the carbonoxide2 they want to eliminate
At 3:15 the graphs are very irritating since it isn‘t the same scale. Be aware of it because it would not look as bad as it does if they were equally scaled
I saw that. I had to pause to see what was really happening. It seems like there was about 20 percent point drop (+15 around 1990 → -5 around 1993) in about 3 years (-133.33% decline in prices), and China seems to have experienced about a 7.5 percent point (+2.5 around 2021 → -5 around late 2022 / early 2023) in about 1.5 years (-300%). While Japan experiences a greater percent point decline due to a greater level of exuberance in property prices, it seems China has experienced a greater percent change. Things are not rosy in the Middle Kingdom.
@@Patrick-sl8pc It's not scaled the same by chronological range nor by physical scale of the image itself - which if you don't look closely it is misleading.
Next years headline in Wall Street Journal: " Why China’s High Inflation Might Be Riskier Than Deflation | WSJ" No matter what China does or does not, no matter the numbers, Western MSM will criticize and condemn EVREYTHING. It's the policy of losers.
Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place.
It has never been simpler to grasp how to expand your wealth than it is right now, thanks to the availability of competent portfolio advisors that can help you experience and learn about a market with a wide range of assets. I think it's impossible to predict how changing dollar values will affect assets.
Yes, I have been in touch with a CFP ever since the outbreak. Today, investing in hot stocks is quite easy; the difficult part is deciding when to buy and sell. With an initial starting reserve of $80k, my adviser chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Rebecca Nassar Dunne for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
The only American who won't acknowledge this Administration's failed economic policies is Joe Biden. "Shrink-flation' is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that?
I would avoid index funds, mutual funds, and specific stocks for the time being. Right now, the best option is a fixed income of five percent. Put money aside for the times when the market really starts to bounce back.
Your adviser must be really good, I hope it's okay to inquire if you're still collaborating with the same adviser and how I can get in touch with them?
trust me that our God isn't Jesus and Jesus isn't our God and no his son. He is a messenger from Allah and our Muslims love Jesus but our God is Allah and He is the Greatest there's no God but Allah and you can learn and read about Islam religion 😊🌷
@@danielvisky yeah, it is all messed up, I was trying to secure a loan for my new arm tattoo and starting my own business, couldn't get any because I took one in the past
@@garysanderson5774 the thing is, many Chinese families either have a home outside of the cities, and possibly a 2nd home in the city. If they get laid off, they probably have to move back in with family, or rent apartments with other people, as they try to find a job. Thing I see is too many people looking for jobs, and not enough good paying jobs. Thus wages are being suppressed.
it is kind of hard to tell, what is better? inflation of basic goods or deflation? If inflation is caused by gov't stimulus spending, then I suppose it keeps people in their jobs, but then people's purchasing power gets eroded?
Like the other comments said, that plus usually a product price will stay the same and won't be adjusted accordingly too, so you're essentially spending more monetary value to purchase the same product.
Deflation is the natural state of the economy as technological advancements remove inefficiencies in production, resulting in more supply at cheaper costs. Central banks offset this deflation with money printing resulting in the redistribution of wealth from everyone to the ultra-wealthy since they are able to access the newly printed money before everyone else. This is known as "the cantillon effect" described by economist Richard Cantillon.
Why does deflation seem to produce an economic malaise ie poor job creation, stagnant wages, reduced risk taking etc. If prices were falling but people still felt confident about the economy it would be fine.
You need inflation if your economy is growing (or want it to grow). If there's higher wealth/value in the economy there should be more money to represent it. Otherwise, people would just hoard money because you'll be able to buy more with it in the future.
Homes are for staying, not for speculation. Price drop benefits home buyers at the expense of speculators and developers. Secondary sales volumes are up although values are down. Developers are encouraged to build government subsidized homes going forward. Evergrande could not get local financing a few years ago so issued foreign bonds so its bankruptcy hurt mainly the foreign speculators.
trust me that our God isn't Jesus and Jesus isn't our God and no his son. He is a messenger from Allah and our Muslims love Jesus but our God is Allah and He is the Greatest there's no God but Allah and you can learn and read about Islam religion 😊🌷
Lol businesses are not charity, how much money goes in is how much comes out. Fixed income workers will be laid off if they can't afford to pay out anymore.
China isn’t playing ball Our top of the food chain 1%ters and their multinational corporations Don’t want a closed off or slowing China They want those Chinese buying their 4th and 5th homes right about now. They want their companies in China lending that money and selling those goods and services to them. Hopefully get them to spend those high saving and then borrow to spend more like we did in the west. In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
Yes the *Wall Street journal* wants us to be worried about slower growth and lower prices…things that would be good for the planet, and good for regular people, but bad for billionaires. Mmkay
Yup China isn’t playing ball Our top of the food chain 1%ters and their multinational corporations Don’t want a closed off or slowing China They want those Chinese buying their 4th and 5th homes right about now. They want their companies in China lending that money and selling those goods and services to them. Hopefully get them to spend those high saving and then borrow to spend more like we did in the west. In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
there is economic consensus that deflation is worse because of its negative spiraling tendencies. Deflation is much harder to stop than inflation. That being said, yes your currency gains relative value but if no one is spending then the economy will shrink leading to lower wages.
Without deflating slowing down their real estate markets and economy They would be faced with some people buying their 4th and 5th homes right about now While a few hundred million. Poorer rural folks can’t afford to buy a home in the cities they migrate to While some people have fallen through the cracks the majority of the people complaining are usually the more well of Chinese Talking about how they are having a harder time keeping up on their 3rd and 4th home purchase It’s a biased narrative as our Central Banks were raising rates looking looking for a bump up in unemployment figures. As our own real estate has cooled as we invite speculation, empty home and foreign owner taxes Where China is going to crash as their wages come down
I don't think it's the deflation that is itself bad; rather, deflation indicates there was malinvestment and now there is a glut of stuff people don't want
The problem is that this is a Keynesian economy. Under Federal Law, the Federal Reserve cannot allow deflation to take place and they never will. If unemployment rises and deflation begins, they will slash interest rates and begin quantitative easing to strengthen the stock market and large employers. If this country dies, it will die from hyperinflation; never deflation again.
China's economy is not the same as the US, they have deflation (and inflation) all the time, this is the 5th in the last 20 years. That's cause they have big swings up and down, that's not good, but it's nothing new either. The US government it's just trowing every 'bad' number they can get from China to justify their 'China is collapsing' BS, but we know which country is really collapsing. The Roman Empire at the end was providing distraction to fool the peasants too, there's nothing new in that either.
Technology is deflationary and awesome. I think "deflation is evil" propaganda is a demonization of lower prices for consumers and terrible news for profiteers.
Er normal people in a deflationary economy aka thr working class would be the most worried since there gonna get pay cuts. Massive layoffs and expectations of working would rise in order to keep essential businesses afloat like grocery stores, shipments, construction for building new homes. Economists are worried, but the working class is pooping their pants 💩
Conspiratorial thinking is for weak minds who can't negotiate aleatory, chaos, etc.-part of a world in which, for whatever reason, they feel powerless.
Deflation is a problem because nobody will buy anything if they know it’ll be cheaper tomorrow. And tomorrow, they’ll wait for the day after. Soon, it’ll have been 6 months with nobody paying for home renovations, refrigerators, TVs, etc. because it’ll be cheaper later, and people who work in those industries will lose their jobs. If you knew your $100 would become $150 tomorrow, would you spend it today or tomorrow?
Let's just say it's not doing great, It never collapsed but the country lost its economic shine. Japanese companies no longer play a role in the new economy and the yen has crashed hard. Great place to visit though and cheap but not a place to live and work.
The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Svetlana Sarkisian Chowdhury is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
I'm learning Mandarin so I can move to China. Affordable housing. No looting. No looking over my shoulder at the ATM. I can walk around at 3AM without worried about getting robbed at gunpoint.
High inflation is followed by uncertainty and panic, making me wonder if it's time to liquidate my $200k portfolio, or maybe consider some defensive investments. I've heard analysts emphasize on value stocks performing good, what stocks exactly can be the ultimate hedge?
consider diversifying your portfolio with a mix of stocks and stable assets, seeking professional advice could also be valuable to navigate market uncertainties and grow your investments amid inflation
True, expert guidance is vital for compounding and achieving proper asset allocation. At first hand experience, I've been able to grow my portfolio from $180k to approx. $650k in barely 3 years now. Financial fitness requires staying committed.
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The gall to spin deflation as a catastrophe compared to the exponential inflation in the west is unbelievable. China is managing a controlled reset after an extended period of growth with a responsible approach that maintains a reasonable standard of living and purges businesses/industry that was too speculative. This has always been the traditional cycle. But where as in the west, the US in particular with the ability to print money, believes it can ignore economic fundamentals and continue to achieve growth at the cost of squeezing the consumer for every last dime and incur more debt. With deflation as a threat, China can perform quantitative easing as well as reduce interest rates to stimulate growth again. What a luxury to have compared to spiralling housing costs and food prices.
Interesting take, but you could be giving China too much credit. Their economy looks to be in serious trouble, and a lot of people are about to experience a lot of pain. And for all the West's faults, most countries have decent social safety nets. In china there is almost nothing, and if people can't get jobs, they'll be left to simply die.
That's a B.S. spin job if I ever heard one. China is facing multiple potentially catastrophic crises simultaneously and doing a clown-show of a job managing them because the CCP has cement shoes when it needs to be fast on it's feet. Xi has centralized decision making to the point where nobody wants to make a decision for fear of being disappeared. China has trillions (Yes, trillions) of dollars of unnecessary apartment buildings and infrastructure, and as a result the overleveraged developers are all going bust. The CCP has been so hostile and capricious in it's treatment of foreign companies that foreign investment is fleeing the country at record speed. Which means both no money AND no jobs. And to top it all off, China pushed it's luck so far with it's Wolf Warrior diplomacy, intellectual property theft, and blatant over-subsidization of industries that it got itself into trade wars with America, Australia, and the EU. Oh, and let's not mention the whole South China Sea debacle, where China has both alienated AND alerted all of it's neighbors who are now arming themselves for the inevitable armed conflict China is pushing for. And China supposedly wants to continue trading with these countries it regularly threatens. And the countries debt to GDP ratio is going toxic fast, especially the provincial debt. Stop me when I get to spot where I'm wrong.
No he is right the Chinese Government started to crack down in real estate development in 2010 If they didn’t? right about now???? You would have people buying their 4th and 5th homes. While a few hundred million rural migrants still expected to migrate to the cities couldn’t afford a home in the cities they move to In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
The real irony is while we see visions of doom and gloom in China as they slow their economy crack down on real estate speculation We argue about housing, be a right here Call for those higher interest rates speculation, empty home or foreigner ownership property taxes etc etc as we cry about consumer staples inflation
was watching a documentary some westerner who had come back to the poorest village in China 1 year later As he walks in on a Senior Social worker berating 5 or 6 social workers because a deadline was fast approaching and they had a quotas to meet getting people in the village above a poverty line or they all including this Senior Social worker would get demoted/fired Where they had to make sure the villagers were signed up for some State healthcare plan where the State paid 95% of the bills Then this guys follows one social worker as he shows him the newly paved roads and new houses and the donated furnishings in a home Even with all that you could get a sense of fear and worry in this guy demeanour. As we find out he was some Government banking official who was demoted to this job And the only way you move back up is to meet your deadlines and quotas Is this a better system than we have in the west? Depends on if our Government is willing to build roads and houses for people with little expected return You can RUclips search it if you want 👇 Revisiting China's poorest village
In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@@neilchan7361 Really? So when millions died of starvation during the Great Leap Forward, that was China being more stable? When Xi crashed the economy with absurd Covid restrictions, was that stability? I'll tell you what Chinese 'stability' looks like: the one child policy unable to be changed for decades despite the foreseeable demographic time bomb barreling towards the country. China will be paying for that bit of stability in the coming years. Stop thinking China has good governance. It demonstrably does not.
Because this channel is about the economy and China's economy is still number 2 and a pretty important trading partner for all major economies, including the US. Nobody would care about China's economy or domestic politics at all otherwise. It's pretty obvious.
Just ignore what's going on with our single biggest trading partner and the number one global producer of various critical commodities? Gee can't imagine why the Wall Street Journal is reporting on such matters but yeah, okay. "America bad" for paying attention to such things.... Whatever.
In China, no one lives on the street, and there is no shoplifting. When the economy is down, people will work harder than before to increase their income to get through the hard times. The Americans stopped us from buying chips, and we started to learn how to make them ourselves. The Americans let modern industry leave China, and we developed a domestic demand economy. The Americans damaged China's image through the media, but we don't care. We believe that we will get better and better!
if most don't connect that deflation tends recession, where inflation tends growth as the macro rule of thumb #1, then maybe economics should be a mandatory subject...
The US economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Can someone explain to me how a moderate (2-4%) inflation in the cost of goods in an economy is considered a good thing in general but a moderate deflation of that same metric is considered dangerous ? Shouldn’t the cost of goods and service also occasionally go down as the market responds to various things
It's not bad, this video is making some outrageous speculations about how majority of people make decisions. If I need a new pan, I am not going to wait 1 year to buy a new pan, because the economy is deflating. It's a different story when it comes to housing market but in case of China deflation of the housing market is a very good thing, primarily because a lot of Chinese people used the housing market as an investment rather then a necessity or to live in their homes, but if house prices go down then people won't be buying new houses to earn money, they will be buying to live in them, which is a reeealy good thing for young people to get hold of their own house at much earlier age.
If prices are rising marginally then investors will be encouraged to invest but if prices are constantly falling then no one will invest since the business costs of today will not be recouped tomorrow . The price of goods will be lower tomorrow meaning you will be operating at a loss. That's why Japan has been losing it's industries
Businesses want consumers to be fearful and greedy to keep profiting from them. Say you are looking for a new table, the salesperson tells you better get it now because prices will increase next month, you will hurriedly buy it. But if every month the prices keep falling then the sales person can't make you purchase quickly.
What a 2-4% inflation wants to force: because you want to keep your standard of living, the inflation keeps you to increase your productivity every year by 2-4%. If living with 0 inflation, many people would stay on the same level.
If the rest of the world sees 10% inflation and you see 1% deflation, this means your output has a 11% advantage over the rest of the world. Basically your exports will rocket as nobody can compete with you. At the same time your cost of living will stay low. The only disadvantage is that there will be little incentive to pump asset bubbles. For the west, that relies on financialization, this would be a to disaster. For china, which relies on manufacturing, it's ok.
Demographic plays a very important role in determining the outcome of the economy. Population growth is declining. There needs to be people working, earning money and spending money to have an economy.
@@dingus6317 in chinas case it doesnt matter how many children they are having. Decades of 1 child policy has effectively seen to it that their economy will shrink just like the west perhaps even worse
So japan that has supposedly had a bad case deflation for the past 30 years is still a market leader in manufacturing. Perhaps the issue is the western model of economics apparently not sacking your workforce is a bad thing judging from the tone of the narrator. Perhaps there is another way.
@@muyiwaajose-do8ktJapan is nowhere near the manufacturing leader it once was, and even in areas where it remains strong, a lot of the manufacturing shifted out of the country. Just look at it's unemployment rate over the last 30 years. It's just recovering all of which indicates that they also fired a ton of people
Deflation is good. Prices are too high now so we need much lower prices. A gallon of milk costs $5. It should cost $1. A simple truck costs $30,000. It should be $10 Grand. So we need a lot of deflation.
Yup. Stop letting Wall Street stooges set national economic policy and the market will sort it out far better than some bureaucrat in Washington ever could.
@@Aelfraed26deflation causes a cycle of demand to slow down and subsequent lower production which will cause the companies to cut jobs to keep their margin
@@Aelfraed26It's an indirect correlation, and depending on the market may not even hold true. It's a business major's presumption on emergent human behaviors that has proven to be a decently accurate take in modern times. It does not hold true at extremes, or if the entire "system" breaks down. At that point the fictional nature of it all overwhelms anyone's belief in meta economics. Typically at that point people organize into unions, tribes, townships, gangs, name it. Many an economic system abound at that point. Scarcity plays a role in nearly all of them, still.
Anyone claiming deflation is worse than high inflation clearly never lived in a country with high inflation. 5-10% isn't high inflation. Try living with 100% inflation for 3 years, then we'll talk which is worse.
They are selling so-called Kei-cars (small cars with 660cc ICE) at home. Camry, Prius, Land Cruiser etc doubled or tripled in price in Japan because they are pegged to American inflation.
“I’ll wait til next year to buy because it’ll be 2% cheaper” Said no American ever 😂 (IMHO deflation is more of a symptom of other problems than THE problem)
True, but, it would probably effect people buying houses, and that’s 60% of chinas economy, and obviously some sectors are hit worse then others in regards to inflation and deflation
That 5% figure has been met with skepticism from international governments and banks. The property sector in China was over 30% of GDP growth and it has now stopped growing, yet China is still citing the same growth figure, which simply doesnt seem to make sense statistically. It was predicted that China would cite 5% no matter how slow their growth was, due to the 5% figure reflecting policy and not reality, and that turned out to be true.
China export increase 7.1% for JanFeb, 3.1 for import. 5% growth is easy. Decrease in property, increase in EVs, solar, wind, HSR, subways, and even tourism. People won't buy 2-3 apartment for investment. Property no longer the main driver. Nobody will buy property stock and rush for semiconductor and green industry. @@theonlycaulfield
I remember when America had deflation. It was great. Once you got a job you where actually able to afford things. It was great. Don’t listen to the lies. When a government allows deflation it shows they care more about the people then the corporations
The reason for the slow decline of house prices in China: The government forbids real estate developers to sell houses at low prices. The government purchased a large number of properties as reserve housing. The land supply for the construction of residential houses approved by the government is very small.
I don't trust WSJ when it comes to economics. Especially while they try to say "low consumer prices are bad". Isn't the entire point of 'economies of scale', to be able to produce goods cheaper, reflecting a better price tag for consumers? Why is every corporation's #1 goal to raise their prices as much as humanly possible?
Economies of scale are good for them because it reduces the cost of input prices. While they _can_ use that to lower consumer prices to compete, America's economy is monopolistic, most can simply keep increasing consumer prices and see an ever increasing profit margin. Prices already outstripped the ability for many consumers to continue purchasing, which is why cheap credit is so important to the American economy.
Actually its lack of demand that caused prices to fall, then due fall in price levels lead to fall in profits which further leads to decrease in wage rate or we can say decreased production due to lack of demand. Due to dec. in wage rate it further decrease demand .
Yes, reduction in demand. You will put off that car purchase til next year because the price will be lower. Your decision not to buy creates a reduction in demand for this year.
@@jaggagaming2519It's supply-demand balance shifting toward supply that causes prices to fall, reduction in demand can cause the shift, so can increase in supply. Reduction in sales prices reduces profit margin but does not reduce net profit, otherwise events like Black Friday won't exist. Decrease in prices directly increase real income per real income equation, reduction in corporate profit margin does not equal layoffs just as companies don't mass layoff after Boxing Day. You created a specific scenerio to rationalize what you want to see while ignoring all the contradictory data refuting your scenario. For example, Chinese auto prices vis-a-vis revenue and profit of companies like BYD, or Chinese smartphone prices vis-a-vis revenue of Huawei, or China's astronomical solar install and massive solar prices drop giving Chinese industry one of the cheapest energy prices in the world.
Tesla stock dipped severally , resulting to about 23% drop in the shares value this month. I seriously need suggestions on how to diversify my $400k portfolio made up of volatile TSLA.
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Svetlana Sarkisian Chowdhury is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Japan's relative economic decline was not caused by deflation but rather by new competitors like South Korea and Taiwan who started making products that Japan used to make at a cheaper price. Stop the BS.
@@CryptoCryoto and that was dum they also didn't have aluminum or silicone invented , only in planes was in used, its in everything from cans to carsnow, back in 1960 they only believed in cold hammer forged steel like Russia , now in USA cold hammer forged is banned to make becuz osha
I live in China and feel fine. It is true that many companies will close down, but the daily consumer prices of the public have not increased. Unemployed people will choose to work in food delivery or other service industries. Failing prepared meal restaurants were replaced by frozen prepared meals in supermarkets. I am more inclined to think that this is a tearing pain in the economic structural transformation. When the new industrial structure is determined, everything will return to normal.
@@LoveFactorySweatShop How will they make it to American Showrooms? This is an actual question from someone who actually deals in international trade and business. Do you know anything about tariffs?
The problem was that Japan's central bank would never allow a deflation to really take place. That is, the Yen could never hit bottom as long as the central bank manipulated the money supply. So, it dragged out the recovery forever. No one could trust that inflation wouldn't start again. What a way to destroy confidence. If you want a recovery from government mismanagement, you have to get rid of the central bank.
I'm condused about deflation and inflation. I'm a basic worker in Finland with pay a little under finnish medium pay. When we had inflation faster than my pay rise I was getting poorer Now rents have stagnated and price of food is not rising as fast anymore. Price of homes has come down. So I'm not getting poorer all the time. This deflation is feeling pretty nice
The United States as we know it is no more. All signs point to 2023 being a year of significant economic hardship for the entire nation. Put your cash to use straight away to increase its value. I was aware that I needed to invest. I had no idea how quickly a few thousand dollars a month would go up. Though it is. Since 2020, I've made about $600,000.
Congrats. Your ability to control the whole risk profile of your investments and prevent irreversible capital loss will be your actual financial unlock. A plan must be in place to take advantage of opportunities to profit when they arise.
When you first start off, you should get advise from a fiduciary counsellor if you don't want to crash and burn. They adopt a profit-driven approach based on individual risk tolerance because their entire skill set is built on simultaneously trading long and short.
true, A lot of folks downplay the role of a professional until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Carol Vivian Constable for about five years now, and her performance has been consistently impressive.
In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.
The pathway to substantial returns doesn't solely rely on stocks with significant movements. Instead, it revolves around effectively managing risk relative to reward. By appropriately sizing your positions and capitalizing on your advantage repeatedly, you can progressively work towards achieving your financial goals. This principle applies across various investment approaches, whether it be long-term investing or day trading.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
Gertrude Margaret Quinto is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
If one can get a BYD Seal AWD for USD 25K one day that has to be a good thing. Do we not want to reduce our reliance on fossil fuels. If PRC deflation brings us more quickly to the widespread use of renewal energy that would be a great thing.
Their car life span and battery life span is terrible. Resale bad. Quality bad. Why pay for a cheap car that depreciates to zero and breaks down in five years? Short sighted. Versus a Toyota that will keep going for 20+ years. In the end, you have to waste money buying another car in a few years and over the long run you’ll lose out
Why are you guys so obsessed with China?? and most of what you talk about them its always negative "China is struggling with this, China is struggling with that" how about you talk about US struggles for a change? you guys have a massive debt problem and it keeps growing if I recall correctly. How about you talk about the fall of the US dollar in global trade and the reasons why?
I don't really understand the argument that deflation postpones consumption. If you need a new car to get to work or something else, you buy one. If you postpone consumption due to expected price drops, it must be because it is something you don't really need. Falling prices must be positive, as you can buy more.
Yeah, don't believe in all these "economists". They just want price to keep going up with infinite inflation so everyone can't afford anything eventually. Imagine them trying to convince us price going down is bad if we have savings? It's bad for those without savings in the bank since they can't find a job but we need massive unemployment and high deflation to bring the price back to where it was.
>sigh< Deflation also involves _the price of labor_ falling, i.e. your wage and salary. Recent news from China with layoffs and salary and benefit reductions suggest as much. If prices are falling and your income is falling too, a 'best deal possible' mindset is formed leading to the delays in consumption. Even if you have a lot of savings, if your income is suddenly slashed, you'd avoid buying things too.
United States' staggering debt of $35 trillion, coupled with the massive social security obligation of $175 trillion, is undoubtedly a cause for concern. It's high time we address the elephant in the room and ask ourselves the question: Will the United States be able to continue as a sovereign nation, or will it succumb to civil war when the inevitable debt bubble bursts? The fact remains that a large debt is a ticking time bomb for hyperinflation, which, in turn, is guaranteed to bring with it crimes and civil unrest. Let's not kid ourselves - the situation is dire, and US need to act now before it's too late. As for the deflation in China, it's hardly worth worrying about. Japan has been dealing with deflation for decades, and they're still thriving. Chinese and Japanese will not riot on the street when their big mac is 50% cheaper then before, however Americans will definitely riot when their big mac is up 1000% due to hyperinflation..
@@ajgjmtgmddt9868 at the same time population is declining. If you look at Buffet's investments, he made sure that he got companies with global exposure.
@@கோபிசுதாகர்because they are printing money to buy resources like oil in yuan, they used to need dollars, now they buy oil and all other resources in yuan.The cost of production has fallen rapidly
@@AhmetTekin101there's market adjustment in China leading to oversupply and cheaper goods price. Deflation isn't a problem, it's just an indication that something wrong somewhere
I would say some Chinese buying their 4th or 5th homes While 300 hundred million rural Chinese are still expected to move to the cities but can’t find affordable homes Isn’t the best kind of inflation
In economy 101 they say when the price is high, demand will be lower, when the price is low, demand will be higher. Why this is not the case in deflation situation?
Cause deflation ain't just the drop of the price in one single product, it is the decline in prices around the whole economy. Imagine food and gas and medicine and eletronics all dropping in prices continuosly... so people stop buying stuff hoping they'll get even cheaper. That have the potential to really slow down the economic wheel. When prices are growing people urge to buy before they get even higher. When prices are kind of stable people buy when they need or when they feel like. When prices are going down, everybody keep their money cause money is increasing in value compared to products and services. And if nobody buys, the economy goes sour. Remember during the pandemic when people were only buying the essentials so people working on leisure and tourism industries were getting fired cause of the lack of business?
it's more about lack of confidence in China's economy. if you believe that tbe economy will only get worse, you rein in your spending to prepare for the worst. No demand, lower prices. Market forces takes over.
@@MollyGermek you missed the point. The modern complex economy is not based on "essentials". If people only buy food and medicine, and stop buying the rest of things, money won't flow, people won't get paid, so the econony shrinks. Just Google about "deflation". It's a much harder circumstance than inflation. While inflation is manageable cause it MIGHT mean there is more money circulating the economy cause more is being produced and consumed, deflation means people ain't buying "stuff", they're just saving the money cause money is getting more valuable than products. Why would you buy a car today for 100k if last month it costed 105k and the month before 107k? Economies can get really messy. Just look at South American economies since 1900...
Looking at China through coloured lens. An analyst can always find negative things to say even in the best situation and showed up their bias. There a Chinese phrase - picking bones from egg shells.
@@mattheww.6232 Don't buy houses in expensive areas then? Everyone wants to buy house in good areas but they don't want to work hard and smart for it. People only know how to blame and blame.
In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers. Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate. Even then, It took them almost 14 years to get their overheated real estate under control Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018 Why is their Central Government doing this? Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen. Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need In China Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married Thus the common prosperity push and the crackdown on the overt displays of wealth in China Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
Inflation, USA: economy is booming; China: economy is poor. Deflation, USA: inflation is curbed, economy is experiencing a soft landing; China: economy is poor.
Only Western media can make cheap prices sound bad. Well, maybe it's bad for people/businesses that want to keep prices high and compete against cheaper Chinese goods at the same time.
I think most countries central banks have a target of a few percent inflation, also China, which currently has a target around 3%. While it might seem bad with ever increasing prices, most economists, including Chinas, seem to agree that is preferable to the alternative.
some say if you keep repeating a lie it will come true. in this case, the lie is that deflation is terrible, worse than inflation, etc. it's not true. deflation is bad for the ultra wealthy, for the people who want society to be a consumer society. deflation is good for regular people, because it means they're actually wealthier because their money goes further than before.
The more I watch such nonsense, the more I am convinced how much more stable and adequate the Chinese economy is than the US economy. It’s a pity that Western oligarchs will never allow such things to happen in their country, because common people should not live well.
They explained the issue pretty clearly. Prices continually going down means that people are not going to go out and buy things (except essentials). This is bad for business as no one is buying cars, houses, tech, and luxury goods. This leads to people being fired, companies downscaling, losing money on investments, etc. Lower prices sound great on paper, and sometimes are alright if people are still going out and using their money, but that typically is not what happens.
@@nntflow7058Real wages literally go up with deflation and go down with inflation, it's a fundamental economic principle. China is one of the only countries in the world where real wages rose last year.
@@nntflow7058 The equation for real income is Real Income = Wages / (1 + Inflation Rate). Do I need to explain fractions to you? Next time save yourself the humiliation by loosing up econ 101 first.
Do you know why prices are skyrocketing? Due to export restrictions imposed on the manufacturing countries of the goods, many countries such as the Philippines, Vietnam, Malaysia, etc. purchase goods from the manufacturing countries and label them with their own country before selling them to Europe and America. The result is that Europeans and Americans are paying for this bill themselves. That's right, the manufacturing country I mentioned is China。
depending on the amount of Chinese inputs into the products, that could very well violate trade compliance laws. you can't just move something made in china across a border then label it as being made somewhere else
@@alquinn8576 Tell me, there is a product with a few screws left that haven't been tightened. If I buy this product and tighten the screws, can it be used as my product? Can I publicly claim that I did it and that it can be sold worldwide?
@@文竹观羽 it depends on a lot of things, but often, something that trivial would not justify a country of origin other than China, if that's where 99.9% of the work and inputs were sourced. I work with people in trade compliance, so I absorbed some of this info, though I'm not in that game myself.
not so much local govt propping up real estate prices, it's that they are NOT allowing realtors to sell property below what the officials perceive as an acceptable price!
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Prices can’t go down because then people get laid off, prices can’t go up, because people get laid off. I think the companies and their expectations of never ending profit increases are the problem
well, that's the nature of competition, you're supposed to want to increase profits.
The problem in China is mostly that it's very corrupt, so lots of loans or money just keeps getting wasted in things that literally produce nothing, i.e. their chip manufacturing attempts.
@@GameFuMasterWe will be facing the same problem here in the US in the coming years. Eventually the government cant continue with $2t deficits year after year. The impending deflation (or perhaps stagflation), caused by previous wasteful government spending, will current inflation (as bad as it is) seem like a dream come true. This is what happens when you tamper with the natural balance of market. The point is: There is NO free lunch.
@@jonusjonus9271 possibly. But you forget that the US is the world's reserve bank.
If something happens to it, it'll take the world down with it, kinda like 2008.
@@jonusjonus9271Most of the tampering and costs are giving corporations tax breaks and subsidies and incentives. That's the distortion of the market that's really going on, and it's to the detriment of the taxpayer, not the Corpos
@@GameFuMasteri agree its the only reason we've gotten away with it for so long.
when you're poor
inflation bad
deflation bad
existence bad
edgelord
How can BOTH be bad? That should tell you a lot.
With that mindset you will accomplish nothing. You have a lot more control over your life than you think.
The first two I'd agree with the, the last one is subjective in perspective of mindset. I know many who are homeless and in unbelievable debt and don't have a care in the world because they understand the money isn't real and there is nothing for the banks to take from them. Not saying that is a good thing, but again that depends on your viewpoint.
@@RM-jb2bv It should be in the middle.
"Deflation is bad because it's not profitable for capitalists"
There. Summed it up for you.
...and those lower profits are bad for the people who work for those businesses.
There. Finished your statement for you.
If it's not profitable for capitalist then they can't use that profit to employ people. Then they have pay cuts, layoffs and now everyone doesn't have a job.
Deflation makes car loans, mortgages, student loans, etc ridiculously expensive for normal people so no one can better themselves. The rich already control their money so they can afford to exploit a deflating economy by saving as much as possible instead of being forced to spend anything.
Excluding the bankers, what capitalists gain with inflation, man?
@@megapeiron Generally speaking - since inflation decreases purchasing power of money - capitalists, i.e. those that own the means of production, own vastly more non-currency assets than workers, and can thus weather inflation much better.
That's why large economic inflations (like the 2008 crash) usually result in wealth being transferred from the working class to the capitalist class.
Oh I get it, people having impulse control and saving money for later = bad for companies and “deflation”. Who is it bad for again?
it causes huge employement and slows economic growth a lot
You want to lose your job? Why you think governments gave “free” money to everyone during pandemic ?
Who woulda thought that saving all your money and not reinvesting it is a horrible for an economy? That’s exactly why 2% inflation is ideal, it’s low enough for the currency to be stable, but high enough to encourage you to invest into assets.
I bet you are the same type of person cheering on empty home taxes, speculation taxes, foreign owner taxes, while crying about consumer staples inflation where you live
Even with the hike in interest rates because of it they were looking at key unemployment figures
Because those numbers were expected to jump up in order for that inflation to go down
But for the longest time people were buying debt like US Sovereign debt at near zero bound interest rates. Basically people were paying the US Government to borrow their money
👇
The End of Zero Interest Rates
Aug 13, 2023
JEFFREY FRANKEL
As recently as 2022, most monetary economists expected interest rates to remain low indefinitely. While many analysts still expect near-zero interest rates to return, they will likely remain elevated for the foreseeable future, making it harder for governments to service their debts
.
CAMBRIDGE - What a difference two years make. In 2021, when interest rates were near zero in the United States and the United Kingdom and slightly negative in the eurozone and Japan, the consensus was that they would remain low indefinitely.
Project Syndicate
everyone..if companies cant profit..whats their incentive to provide people with..anything? will you make your own electronics/clothing..grow your own food..nope..so if people keep waiting to spend & chasing the bargain bottom prices..backing companies into a corner..those companies cant afford to pay their workforce & build the products..thus have to fold..but his is all part of the reset & most people dont even realize we are the carbonoxide2 they want to eliminate
At 3:15 the graphs are very irritating since it isn‘t the same scale. Be aware of it because it would not look as bad as it does if they were equally scaled
I saw that. I had to pause to see what was really happening. It seems like there was about 20 percent point drop (+15 around 1990 → -5 around 1993) in about 3 years (-133.33% decline in prices), and China seems to have experienced about a 7.5 percent point (+2.5 around 2021 → -5 around late 2022 / early 2023) in about 1.5 years (-300%). While Japan experiences a greater percent point decline due to a greater level of exuberance in property prices, it seems China has experienced a greater percent change. Things are not rosy in the Middle Kingdom.
It is equally scaled. They both just have different increments. But the scale is the same. Hope this helps.
@@Patrick-sl8pc It's not scaled the same by chronological range nor by physical scale of the image itself - which if you don't look closely it is misleading.
@@Patrick-sl8pcNot true. Left goes from -10 to +20, right from -10 to +10
Next years headline in Wall Street Journal:
" Why China’s High Inflation Might Be Riskier Than Deflation | WSJ"
No matter what China does or does not, no matter the numbers, Western MSM will criticize and condemn EVREYTHING. It's the policy of losers.
Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place.
It has never been simpler to grasp how to expand your wealth than it is right now, thanks to the availability of competent portfolio advisors that can help you experience and learn about a market with a wide range of assets. I think it's impossible to predict how changing dollar values will affect assets.
Yes, I have been in touch with a CFP ever since the outbreak. Today, investing in hot stocks is quite easy; the difficult part is deciding when to buy and sell. With an initial starting reserve of $80k, my adviser chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch if you don't mind
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Rebecca Nassar Dunne for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
I just checked her out and I have sent her an email. I hope she gets back to me soon
The only American who won't acknowledge this Administration's failed economic policies is Joe Biden. "Shrink-flation' is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that?
I would avoid index funds, mutual funds, and specific stocks for the time being. Right now, the best option is a fixed income of five percent. Put money aside for the times when the market really starts to bounce back.
Your adviser must be really good, I hope it's okay to inquire if you're still collaborating with the same adviser and how I can get in touch with them?
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
The dominating class does get wealthier when everything is more expensive
trust me that our God isn't Jesus and Jesus isn't our God and no his son. He is a messenger from Allah and our Muslims love Jesus but our God is Allah and He is the Greatest there's no God but Allah and you can learn and read about Islam religion 😊🌷
@@ahmedkamel7065 That's right, he was a great man, but a man nonetheless
@@danielvisky yeah, it is all messed up, I was trying to secure a loan for my new arm tattoo and starting my own business, couldn't get any because I took one in the past
prices go down and wages go down. what's the problem with deflation? it's the problem only for people with debts, assets, and banks.
people get laid off
Employment is the issue
@@garysanderson5774 the thing is, many Chinese families either have a home outside of the cities, and possibly a 2nd home in the city. If they get laid off, they probably have to move back in with family, or rent apartments with other people, as they try to find a job. Thing I see is too many people looking for jobs, and not enough good paying jobs. Thus wages are being suppressed.
it is kind of hard to tell, what is better? inflation of basic goods or deflation? If inflation is caused by gov't stimulus spending, then I suppose it keeps people in their jobs, but then people's purchasing power gets eroded?
Like the other comments said, that plus usually a product price will stay the same and won't be adjusted accordingly too, so you're essentially spending more monetary value to purchase the same product.
Deflation is the natural state of the economy as technological advancements remove inefficiencies in production, resulting in more supply at cheaper costs. Central banks offset this deflation with money printing resulting in the redistribution of wealth from everyone to the ultra-wealthy since they are able to access the newly printed money before everyone else. This is known as "the cantillon effect" described by economist Richard Cantillon.
Correct. Well written comment. Thanks for the source.
Comparing inflation to deflation
is like measuring a big wave vs a tsunami.
Why does deflation seem to produce an economic malaise ie poor job creation, stagnant wages, reduced risk taking etc. If prices were falling but people still felt confident about the economy it would be fine.
Well done, need to comment to put it in reference to
You need inflation if your economy is growing (or want it to grow). If there's higher wealth/value in the economy there should be more money to represent it.
Otherwise, people would just hoard money because you'll be able to buy more with it in the future.
Homes are for staying, not for speculation. Price drop benefits home buyers at the expense of speculators and developers. Secondary sales volumes are up although values are down. Developers are encouraged to build government subsidized homes going forward. Evergrande could not get local financing a few years ago so issued foreign bonds so its bankruptcy hurt mainly the foreign speculators.
trust me that our God isn't Jesus and Jesus isn't our God and no his son. He is a messenger from Allah and our Muslims love Jesus but our God is Allah and He is the Greatest there's no God but Allah and you can learn and read about Islam religion 😊🌷
Deflation is good for fixed income earners.
until you're out of the job because there's no demand
You need an education. Deflation is not 10 or 100 times worse than inflation, but 1000 times worse!
@@AhmetTekin101 tell me why ?
Lol businesses are not charity, how much money goes in is how much comes out. Fixed income workers will be laid off if they can't afford to pay out anymore.
China isn’t playing ball
Our top of the food chain 1%ters and their multinational corporations
Don’t want a closed off or slowing China
They want those Chinese buying their 4th and 5th homes right about now.
They want their companies in China lending that money and selling those goods and services to them. Hopefully get them to spend those high saving and then borrow to spend more like we did in the west.
In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities
By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities
That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers.
Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate.
Even then, It took them almost 14 years to get their overheated real estate under control
Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018
Why is their Central Government doing this?
Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen.
Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need
In China
Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married
Thus the common prosperity push and the crackdown on the overt displays of wealth in China
Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
Yes the *Wall Street journal* wants us to be worried about slower growth and lower prices…things that would be good for the planet, and good for regular people, but bad for billionaires.
Mmkay
Yup China isn’t playing ball
Our top of the food chain 1%ters and their multinational corporations
Don’t want a closed off or slowing China
They want those Chinese buying their 4th and 5th homes right about now.
They want their companies in China lending that money and selling those goods and services to them. Hopefully get them to spend those high saving and then borrow to spend more like we did in the west.
In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities
By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities
That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers.
Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate.
Even then, It took them almost 14 years to get their overheated real estate under control
Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018
Why is their Central Government doing this?
Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen.
Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need
In China
Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married
Thus the common prosperity push and the crackdown on the overt displays of wealth in China
Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
there is economic consensus that deflation is worse because of its negative spiraling tendencies. Deflation is much harder to stop than inflation. That being said, yes your currency gains relative value but if no one is spending then the economy will shrink leading to lower wages.
Without deflating slowing down their real estate markets and economy
They would be faced with some people buying their 4th and 5th homes right about now
While a few hundred million. Poorer rural folks can’t afford to buy a home in the cities they migrate to
While some people have fallen through the cracks the majority of the people complaining are usually the more well of Chinese
Talking about how they are having a harder time keeping up on their 3rd and 4th home purchase
It’s a biased narrative as our Central Banks were raising rates looking looking for a bump up in unemployment figures. As our own real estate has cooled as we invite speculation, empty home and foreign owner taxes
Where China is going to crash as their wages come down
Wild assertion, no supporting arguments.
@@DW-op7lyI have a comment somehow similar to yours though. But yours is great.
falling prices benefit society. People are able to afford their life.
Only if its short term deflation. Long term deflation is bad
Until you lose your job in mass layoffs! See the Great Depression!
I don't think it's the deflation that is itself bad; rather, deflation indicates there was malinvestment and now there is a glut of stuff people don't want
The problem is that this is a Keynesian economy. Under Federal Law, the Federal Reserve cannot allow deflation to take place and they never will.
If unemployment rises and deflation begins, they will slash interest rates and begin quantitative easing to strengthen the stock market and large employers.
If this country dies, it will die from hyperinflation; never deflation again.
@@johnsamuel1999 Computer prices have been deflationary for decades.
Some deflation was necessary stop putting your portfolio above society 100% of the time
The problem with deflation is that when prices go down employment and wages go down too
@@alexzea9091Why would that happen?
Damm!! people people really want to be unemployed 🤦♂️
yes, deflation is really good , vampires also have to sleep , if vampires donnt sleep , no people live for vampires
China's economy is not the same as the US, they have deflation (and inflation) all the time, this is the 5th in the last 20 years. That's cause they have big swings up and down, that's not good, but it's nothing new either. The US government it's just trowing every 'bad' number they can get from China to justify their 'China is collapsing' BS, but we know which country is really collapsing. The Roman Empire at the end was providing distraction to fool the peasants too, there's nothing new in that either.
Technology is deflationary and awesome. I think "deflation is evil" propaganda is a demonization of lower prices for consumers and terrible news for profiteers.
Economists worried, normal people happy.
You must be new here, that's not how this works.
@@twelvecatsinatrenchcoat jew spotted
@@shiiboxx79290/10 nice try boy.
Ignorance is bliss as they say.
Er normal people in a deflationary economy aka thr working class would be the most worried since there gonna get pay cuts. Massive layoffs and expectations of working would rise in order to keep essential businesses afloat like grocery stores, shipments, construction for building new homes. Economists are worried, but the working class is pooping their pants 💩
“Oh no my money is worth more and prices are falling, this is a catastrophe!”
Who are they trying to fool?
The “deflationary spiral” is a myth
Conspiratorial thinking is for weak minds who can't negotiate aleatory, chaos, etc.-part of a world in which, for whatever reason, they feel powerless.
You muppet, the deflation is happening because no one can afford anything.Yes deflation is great if you have lots of money.
Deflation is a problem because nobody will buy anything if they know it’ll be cheaper tomorrow. And tomorrow, they’ll wait for the day after. Soon, it’ll have been 6 months with nobody paying for home renovations, refrigerators, TVs, etc. because it’ll be cheaper later, and people who work in those industries will lose their jobs.
If you knew your $100 would become $150 tomorrow, would you spend it today or tomorrow?
Unlike with inflation, with deflation, companies make quick adjustments to their employees' wages and salaries and employment status.
@@rivertonhigh-v4t quick changes to their employment status made me laugh
despite the lost decade in Japan, is that country really doing so bad all these years?
It wasn’t doing bad and isn’t. It was just frozen. They are trying to frame that as a bad thing
in many ways Japans is much better than the US. They at least have affordable housing,. And the media isn't at war with it's own peoplee.
japan literally 2nd largest economy in the world at that time lol
even its higher standard for most western country, its not magically going backwater
We wanted to see mass layoffs in japan to further damage their economy, but japanese corporations didn’t comply.
Let's just say it's not doing great, It never collapsed but the country lost its economic shine. Japanese companies no longer play a role in the new economy and the yen has crashed hard. Great place to visit though and cheap but not a place to live and work.
The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Svetlana Sarkisian Chowdhury is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
I'm learning Mandarin so I can move to China. Affordable housing. No looting. No looking over my shoulder at the ATM. I can walk around at 3AM without worried about getting robbed at gunpoint.
You need an education!
Deflation is not 10 or 100 times worse than inflation, but 1000 times worse!
I guess you can’t get a job unless you are a super professional.
High inflation is followed by uncertainty and panic, making me wonder if it's time to liquidate my $200k portfolio, or maybe consider some defensive investments. I've heard analysts emphasize on value stocks performing good, what stocks exactly can be the ultimate hedge?
consider diversifying your portfolio with a mix of stocks and stable assets, seeking professional advice could also be valuable to navigate market uncertainties and grow your investments amid inflation
True, expert guidance is vital for compounding and achieving proper asset allocation. At first hand experience, I've been able to grow my portfolio from $180k to approx. $650k in barely 3 years now. Financial fitness requires staying committed.
that’s some interesting numbers, mind revealing this person guding you ? he/she must be a seasoned advisor
Vivian Jean Wilhelm is the licensed advisor I use. Just google the name. You’d find necessary details to work with and set up an appointment.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
The gall to spin deflation as a catastrophe compared to the exponential inflation in the west is unbelievable. China is managing a controlled reset after an extended period of growth with a responsible approach that maintains a reasonable standard of living and purges businesses/industry that was too speculative. This has always been the traditional cycle. But where as in the west, the US in particular with the ability to print money, believes it can ignore economic fundamentals and continue to achieve growth at the cost of squeezing the consumer for every last dime and incur more debt. With deflation as a threat, China can perform quantitative easing as well as reduce interest rates to stimulate growth again. What a luxury to have compared to spiralling housing costs and food prices.
Interesting take, but you could be giving China too much credit. Their economy looks to be in serious trouble, and a lot of people are about to experience a lot of pain. And for all the West's faults, most countries have decent social safety nets. In china there is almost nothing, and if people can't get jobs, they'll be left to simply die.
That's a B.S. spin job if I ever heard one. China is facing multiple potentially catastrophic crises simultaneously and doing a clown-show of a job managing them because the CCP has cement shoes when it needs to be fast on it's feet. Xi has centralized decision making to the point where nobody wants to make a decision for fear of being disappeared. China has trillions (Yes, trillions) of dollars of unnecessary apartment buildings and infrastructure, and as a result the overleveraged developers are all going bust. The CCP has been so hostile and capricious in it's treatment of foreign companies that foreign investment is fleeing the country at record speed. Which means both no money AND no jobs. And to top it all off, China pushed it's luck so far with it's Wolf Warrior diplomacy, intellectual property theft, and blatant over-subsidization of industries that it got itself into trade wars with America, Australia, and the EU. Oh, and let's not mention the whole South China Sea debacle, where China has both alienated AND alerted all of it's neighbors who are now arming themselves for the inevitable armed conflict China is pushing for. And China supposedly wants to continue trading with these countries it regularly threatens. And the countries debt to GDP ratio is going toxic fast, especially the provincial debt. Stop me when I get to spot where I'm wrong.
No he is right the Chinese Government started to crack down in real estate development in 2010
If they didn’t?
right about now????
You would have people buying their 4th and 5th homes. While a few hundred million rural migrants still expected to migrate to the cities couldn’t afford a home in the cities they move to
In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities
By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities
That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers.
Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate.
Even then, It took them almost 14 years to get their overheated real estate under control
Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018
Why is their Central Government doing this?
Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen.
Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need
In China
Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married
Thus the common prosperity push and the crackdown on the overt displays of wealth in China
Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
The real irony is while we see visions of doom and gloom in China as they slow their economy crack down on real estate speculation
We argue about housing, be a right here
Call for those higher interest rates speculation, empty home or foreigner ownership property taxes etc etc as we cry about consumer staples inflation
was watching a documentary some westerner who had come back to the poorest village in China 1 year later
As he walks in on a Senior Social worker berating 5 or 6 social workers because a deadline was fast approaching and they had a quotas to meet getting people in the village above a poverty line or they all including this Senior Social worker would get demoted/fired
Where they had to make sure the villagers were signed up for some State healthcare plan where the State paid 95% of the bills
Then this guys follows one social worker as he shows him the newly paved roads and new houses and the donated furnishings in a home
Even with all that you could get a sense of fear and worry in this guy demeanour.
As we find out he was some Government banking official who was demoted to this job
And the only way you move back up is to meet your deadlines and quotas
Is this a better system than we have in the west?
Depends on if our Government is willing to build roads and houses for people with little expected return
You can RUclips search it if you want
👇
Revisiting China's poorest village
Stability and equality are more important than growth.
Neither of which China has.
In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities
By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities
That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers.
Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate.
Even then, It took them almost 14 years to get their overheated real estate under control
Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018
Why is their Central Government doing this?
Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen.
Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need
In China
Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married
Thus the common prosperity push and the crackdown on the overt displays of wealth in China
Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@@bugsygoo depends on who you comparing to. Definitely more stable than the US.
Right! Which China has none of those!
@@neilchan7361 Really? So when millions died of starvation during the Great Leap Forward, that was China being more stable? When Xi crashed the economy with absurd Covid restrictions, was that stability? I'll tell you what Chinese 'stability' looks like: the one child policy unable to be changed for decades despite the foreseeable demographic time bomb barreling towards the country. China will be paying for that bit of stability in the coming years. Stop thinking China has good governance. It demonstrably does not.
Why US so scared about anything thats happening in China. Focus on your own economy and stop worrying and blaming others for your own problems!
Okay 五毛. #50CentArmy
Except for the greedy who invested in China,nobody else cares what happens there.Nobody !
Because this channel is about the economy and China's economy is still number 2 and a pretty important trading partner for all major economies, including the US. Nobody would care about China's economy or domestic politics at all otherwise. It's pretty obvious.
Just ignore what's going on with our single biggest trading partner and the number one global producer of various critical commodities? Gee can't imagine why the Wall Street Journal is reporting on such matters but yeah, okay. "America bad" for paying attention to such things.... Whatever.
The most mind-boggling logic is that China is doubly blamed for producing cheap products AND not consuming these cheap products themselves.
China inflation→china collapse, china deflation→china collapese. America inflation→economy growth, america deflation→america resilience.
In China, no one lives on the street, and there is no shoplifting. When the economy is down, people will work harder than before to increase their income to get through the hard times.
The Americans stopped us from buying chips, and we started to learn how to make them ourselves.
The Americans let modern industry leave China, and we developed a domestic demand economy.
The Americans damaged China's image through the media, but we don't care.
We believe that we will get better and better!
I'm living in China. I'm so jealous of the high prices in the US.😂
😂😂
I'm jealous of low wages in China.
@@nntflow7058let’s put it how you can understand, their wages may be low but their cost of living is also low. Can you say the same for the west?
Purchasing power in China is still growing. Unlike in the US.@@nntflow7058
You need an education!
Comparing inflation to deflation
is like measuring a big wave vs a tsunami.
if most don't connect that deflation tends recession, where inflation tends growth as the macro rule of thumb #1, then maybe economics should be a mandatory subject...
The US economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Can someone explain to me how a moderate (2-4%) inflation in the cost of goods in an economy is considered a good thing in general but a moderate deflation of that same metric is considered dangerous ? Shouldn’t the cost of goods and service also occasionally go down as the market responds to various things
It's not bad, this video is making some outrageous speculations about how majority of people make decisions. If I need a new pan, I am not going to wait 1 year to buy a new pan, because the economy is deflating. It's a different story when it comes to housing market but in case of China deflation of the housing market is a very good thing, primarily because a lot of Chinese people used the housing market as an investment rather then a necessity or to live in their homes, but if house prices go down then people won't be buying new houses to earn money, they will be buying to live in them, which is a reeealy good thing for young people to get hold of their own house at much earlier age.
If prices are rising marginally then investors will be encouraged to invest but if prices are constantly falling then no one will invest since the business costs of today will not be recouped tomorrow . The price of goods will be lower tomorrow meaning you will be operating at a loss. That's why Japan has been losing it's industries
Businesses want consumers to be fearful and greedy to keep profiting from them. Say you are looking for a new table, the salesperson tells you better get it now because prices will increase next month, you will hurriedly buy it. But if every month the prices keep falling then the sales person can't make you purchase quickly.
What a 2-4% inflation wants to force: because you want to keep your standard of living, the inflation keeps you to increase your productivity every year by 2-4%. If living with 0 inflation, many people would stay on the same level.
If the rest of the world sees 10% inflation and you see 1% deflation, this means your output has a 11% advantage over the rest of the world. Basically your exports will rocket as nobody can compete with you. At the same time your cost of living will stay low. The only disadvantage is that there will be little incentive to pump asset bubbles. For the west, that relies on financialization, this would be a to disaster. For china, which relies on manufacturing, it's ok.
Demographic plays a very important role in determining the outcome of the economy. Population growth is declining. There needs to be people working, earning money and spending money to have an economy.
Housing needs to be affordable in order to have children
@@dingus6317 Boomers: “No”
@@dingus6317 in chinas case it doesnt matter how many children they are having. Decades of 1 child policy has effectively seen to it that their economy will shrink just like the west perhaps even worse
So japan that has supposedly had a bad case deflation for the past 30 years is still a market leader in manufacturing. Perhaps the issue is the western model of economics apparently not sacking your workforce is a bad thing judging from the tone of the narrator. Perhaps there is another way.
@@muyiwaajose-do8ktJapan is nowhere near the manufacturing leader it once was, and even in areas where it remains strong, a lot of the manufacturing shifted out of the country. Just look at it's unemployment rate over the last 30 years. It's just recovering all of which indicates that they also fired a ton of people
Deflation is good. Prices are too high now so we need much lower prices. A gallon of milk costs $5. It should cost $1. A simple truck costs $30,000. It should be $10 Grand. So we need a lot of deflation.
Yup. Stop letting Wall Street stooges set national economic policy and the market will sort it out far better than some bureaucrat in Washington ever could.
Low prices won't help you when you don't have a job due to deflation.
@@pulipakasrikiran9307Why does deflation cause unemployment?
@@Aelfraed26deflation causes a cycle of demand to slow down and subsequent lower production which will cause the companies to cut jobs to keep their margin
@@Aelfraed26It's an indirect correlation, and depending on the market may not even hold true. It's a business major's presumption on emergent human behaviors that has proven to be a decently accurate take in modern times. It does not hold true at extremes, or if the entire "system" breaks down. At that point the fictional nature of it all overwhelms anyone's belief in meta economics. Typically at that point people organize into unions, tribes, townships, gangs, name it. Many an economic system abound at that point. Scarcity plays a role in nearly all of them, still.
Anyone claiming deflation is worse than high inflation clearly never lived in a country with high inflation. 5-10% isn't high inflation. Try living with 100% inflation for 3 years, then we'll talk which is worse.
Toyota camry price has not come down.
They are selling so-called Kei-cars (small cars with 660cc ICE) at home.
Camry, Prius, Land Cruiser etc doubled or tripled in price in Japan because they are pegged to American inflation.
you mean in china? they will go down to around 15k us dollars
Toyota is Japanese...lol
Car prices have already gone down in China. Camry, Passat.
They're produced in the US.
“I’ll wait til next year to buy because it’ll be 2% cheaper” Said no American ever 😂 (IMHO deflation is more of a symptom of other problems than THE problem)
True, but, it would probably effect people buying houses, and that’s 60% of chinas economy, and obviously some sectors are hit worse then others in regards to inflation and deflation
You forgot that wages in china also goes down. Let's not forget that part.
Deflation is a symptom of lack of investment and reduced economic growth
Well, when was the last time there was deflation in the U.S.?
@@mRGuitarShow1 Great Recession of 2009
China 5% growth is recession, US 2.1% is resilience!
if you _believe_ that it was 5%...
Real China's 🇨🇳 economy shrank -3.5% in 2023 as opposed to 5.2% expansion as officially announced.
@icouldntthinkofabettername... But how are they going to buy all those flammable EVs and tofu apartment units?
That 5% figure has been met with skepticism from international governments and banks. The property sector in China was over 30% of GDP growth and it has now stopped growing, yet China is still citing the same growth figure, which simply doesnt seem to make sense statistically. It was predicted that China would cite 5% no matter how slow their growth was, due to the 5% figure reflecting policy and not reality, and that turned out to be true.
China export increase 7.1% for JanFeb, 3.1 for import. 5% growth is easy. Decrease in property, increase in EVs, solar, wind, HSR, subways, and even tourism. People won't buy 2-3 apartment for investment. Property no longer the main driver. Nobody will buy property stock and rush for semiconductor and green industry. @@theonlycaulfield
I remember when America had deflation. It was great. Once you got a job you where actually able to afford things. It was great. Don’t listen to the lies. When a government allows deflation it shows they care more about the people then the corporations
Lower prices are never a bad thing for the consumer. Please stop with the lying...
“Why receiving $1 million dollars would actually ruin your life” - WSJ
Worrying about Chinese deflation harming the American economy is a fallacy. The importer will just keep the growing difference as profit.
it would work if there is was only 1 importer 🤣
@@leeme179 Most of them are in cahoots or pretty large, thus greedy.
China has no solution! Deflation has no solution.
The reason for the slow decline of house prices in China: The government forbids real estate developers to sell houses at low prices. The government purchased a large number of properties as reserve housing. The land supply for the construction of residential houses approved by the government is very small.
I’m a Chinese and I’m living alright in china
I don't trust WSJ when it comes to economics. Especially while they try to say "low consumer prices are bad". Isn't the entire point of 'economies of scale', to be able to produce goods cheaper, reflecting a better price tag for consumers? Why is every corporation's #1 goal to raise their prices as much as humanly possible?
because it is a capitalist principle, see how american companies always raise prices while chinese companies always reduce prices.
Capitalist want people to live miserably. They want keep the price high to maintain high profit margin. Socialist says otherwise
Economies of scale are good for them because it reduces the cost of input prices. While they _can_ use that to lower consumer prices to compete, America's economy is monopolistic, most can simply keep increasing consumer prices and see an ever increasing profit margin. Prices already outstripped the ability for many consumers to continue purchasing, which is why cheap credit is so important to the American economy.
Falling prices leading to a reduction in demand? Okay, sure.
Actually its lack of demand that caused prices to fall, then due fall in price levels lead to fall in profits which further leads to decrease in wage rate or we can say decreased production due to lack of demand.
Due to dec. in wage rate it further decrease demand .
Yes, reduction in demand. You will put off that car purchase til next year because the price will be lower. Your decision not to buy creates a reduction in demand for this year.
@jaggagaming2519 If chinese goods are falling, isn't it good for the rest of the world that imports from China?
@@jaggagaming2519It's supply-demand balance shifting toward supply that causes prices to fall, reduction in demand can cause the shift, so can increase in supply.
Reduction in sales prices reduces profit margin but does not reduce net profit, otherwise events like Black Friday won't exist.
Decrease in prices directly increase real income per real income equation, reduction in corporate profit margin does not equal layoffs just as companies don't mass layoff after Boxing Day.
You created a specific scenerio to rationalize what you want to see while ignoring all the contradictory data refuting your scenario.
For example, Chinese auto prices vis-a-vis revenue and profit of companies like BYD, or Chinese smartphone prices vis-a-vis revenue of Huawei, or China's astronomical solar install and massive solar prices drop giving Chinese industry one of the cheapest energy prices in the world.
Deflation MUCH worse than inflation. Trust me US government would be much more in fear of deflation.
"Printing more money" is never the answer, except when the people want to become poorer
Anyone who says "falling prices are dangerous" is a corporate schill and immediately needs to stop talking.
Short term deflation is good, but long term deflation will suck for everyone
Tesla stock dipped severally , resulting to about 23% drop in the shares value this month. I seriously need suggestions on how to diversify my $400k portfolio made up of volatile TSLA.
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Svetlana Sarkisian Chowdhury is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Japan's relative economic decline was not caused by deflation but rather by new competitors like South Korea and Taiwan who started making products that Japan used to make at a cheaper price. Stop the BS.
Fun fact: America had deflation in late 1800s while becoming the richest economy in the world.
Yeah but that was racist.
@@RM-jb2bvexistence is racist according the woke.
Bidenomics give all wealth to illegal immigrants
That was because money was gold backed and America had raised its productivity. Neither of these are happening in Japan.
@@CryptoCryoto and that was dum they also didn't have aluminum or silicone invented , only in planes was in used, its in everything from cans to carsnow, back in 1960 they only believed in cold hammer forged steel like Russia , now in USA cold hammer forged is banned to make becuz osha
I live in China and feel fine. It is true that many companies will close down, but the daily consumer prices of the public have not increased. Unemployed people will choose to work in food delivery or other service industries. Failing prepared meal restaurants were replaced by frozen prepared meals in supermarkets. I am more inclined to think that this is a tearing pain in the economic structural transformation. When the new industrial structure is determined, everything will return to normal.
Economists worried, normal people happy.
Will "normal people" remain happen when they lose their jobs because companies are trying to stay competitive?
@@Joe-ul3gh i don't care how many chinese people lose their jobs
@@alquinn8576Due to capitalism, Chinese people losing jobs affects everyone. Try and keep up.
Yes, American and German car manufacturers are going to love it when cheap Chinese cars start making it into American showrooms.
@@LoveFactorySweatShop How will they make it to American Showrooms? This is an actual question from someone who actually deals in international trade and business. Do you know anything about tariffs?
The problem was that Japan's central bank would never allow a deflation to really take place. That is, the Yen could never hit bottom as long as the central bank manipulated the money supply. So, it dragged out the recovery forever. No one could trust that inflation wouldn't start again.
What a way to destroy confidence. If you want a recovery from government mismanagement, you have to get rid of the central bank.
Your money being worth more = bad
It is a “vicious circle” when things get better and better for the consumer.
How much did the govt pay you guys lol
Did the economy really grow 5.2%, or did China tell companies at the beginning of the year that they were expected to grow 5.2%?
The people doesn't like deflation is because every price is Dropping only happened in day dreams
I'm condused about deflation and inflation. I'm a basic worker in Finland with pay a little under finnish medium pay. When we had inflation faster than my pay rise I was getting poorer
Now rents have stagnated and price of food is not rising as fast anymore. Price of homes has come down. So I'm not getting poorer all the time. This deflation is feeling pretty nice
WSJ officially thinks we're dumb
The United States as we know it is no more. All signs point to 2023 being a year of significant economic hardship for the entire nation. Put your cash to use straight away to increase its value. I was aware that I needed to invest. I had no idea how quickly a few thousand dollars a month would go up. Though it is. Since 2020, I've made about $600,000.
Congrats. Your ability to control the whole risk profile of your investments and prevent irreversible capital loss will be your actual financial unlock. A plan must be in place to take advantage of opportunities to profit when they arise.
When you first start off, you should get advise from a fiduciary counsellor if you don't want to crash and burn. They adopt a profit-driven approach based on individual risk tolerance because their entire skill set is built on simultaneously trading long and short.
true, A lot of folks downplay the role of a professional until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
How can I contact your Asset-coach as my portfolio is dwindling?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Carol Vivian Constable for about five years now, and her performance has been consistently impressive.
In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.
The pathway to substantial returns doesn't solely rely on stocks with significant movements. Instead, it revolves around effectively managing risk relative to reward. By appropriately sizing your positions and capitalizing on your advantage repeatedly, you can progressively work towards achieving your financial goals. This principle applies across various investment approaches, whether it be long-term investing or day trading.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
*@lilyhershey1* That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?
Gertrude Margaret Quinto is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
Lower prices is a consequence of productive economies.
We have a fed with a 2% target and they still can’t stop printing money and causing inflation.
If one can get a BYD Seal AWD for USD 25K one day that has to be a good thing. Do we not want to reduce our reliance on fossil fuels. If PRC deflation brings us more quickly to the widespread use of renewal energy that would be a great thing.
Their car life span and battery life span is terrible. Resale bad. Quality bad. Why pay for a cheap car that depreciates to zero and breaks down in five years? Short sighted. Versus a Toyota that will keep going for 20+ years. In the end, you have to waste money buying another car in a few years and over the long run you’ll lose out
China deflation -> bad for global economy
China inflation ->- bad for global economy
🤣🤣🤣
Dear god, the travesty! The chinese get lower prices! Quickly, print money and blow a new bubble!
Why are you guys so obsessed with China?? and most of what you talk about them its always negative "China is struggling with this, China is struggling with that" how about you talk about US struggles for a change? you guys have a massive debt problem and it keeps growing if I recall correctly. How about you talk about the fall of the US dollar in global trade and the reasons why?
Price of being a major power.
The consequences of making 1 billion people work I guess
Why obsessed with a thug?
How do you outrun a bear? You trip over the person next to you.
I don't really understand the argument that deflation postpones consumption. If you need a new car to get to work or something else, you buy one. If you postpone consumption due to expected price drops, it must be because it is something you don't really need. Falling prices must be positive, as you can buy more.
Yeah, don't believe in all these "economists". They just want price to keep going up with infinite inflation so everyone can't afford anything eventually.
Imagine them trying to convince us price going down is bad if we have savings? It's bad for those without savings in the bank since they can't find a job but we need massive unemployment and high deflation to bring the price back to where it was.
Yeah but advanced economy is not an economy of things we need, it's about luxuries and things we want.
It’s not an argument it’s just a lie. These people told you BLM riots SLOWED the spread of Covid.
@glennielsen Totally agree! As if people were super-rational about their purchases! Not the humans I know!
>sigh< Deflation also involves _the price of labor_ falling, i.e. your wage and salary. Recent news from China with layoffs and salary and benefit reductions suggest as much. If prices are falling and your income is falling too, a 'best deal possible' mindset is formed leading to the delays in consumption. Even if you have a lot of savings, if your income is suddenly slashed, you'd avoid buying things too.
United States' staggering debt of $35 trillion, coupled with the massive social security obligation of $175 trillion, is undoubtedly a cause for concern. It's high time we address the elephant in the room and ask ourselves the question: Will the United States be able to continue as a sovereign nation, or will it succumb to civil war when the inevitable debt bubble bursts? The fact remains that a large debt is a ticking time bomb for hyperinflation, which, in turn, is guaranteed to bring with it crimes and civil unrest. Let's not kid ourselves - the situation is dire, and US need to act now before it's too late. As for the deflation in China, it's hardly worth worrying about. Japan has been dealing with deflation for decades, and they're still thriving. Chinese and Japanese will not riot on the street when their big mac is 50% cheaper then before, however Americans will definitely riot when their big mac is up 1000% due to hyperinflation..
failed to point out, Japan's stock market new high is also a bubble.
The PER of the Japan's stock market is 16x, and you can't call this a bubble.
@@ajgjmtgmddt9868 at the same time population is declining. If you look at Buffet's investments, he made sure that he got companies with global exposure.
Considering inflation, Japan's market has not actually reached a new high yetm
Deflation: Consumer wait until tomorrow to buy.
Me: Puts another piece of Made in China plastic in Amazon cart before Prime Day. :/
Deflation is better for price stability than this crazy inflation.
But doesn't that mean that the price is decreasing? So how is that price stable?
@@கோபிசுதாகர்because they are printing money to buy resources like oil in yuan, they used to need dollars, now they buy oil and all other resources in yuan.The cost of production has fallen rapidly
You need an education!
Deflation is not 10 or 100 times worse than inflation, but 1000 times worse!
@@AhmetTekin101 that's what I was thinking also
@@AhmetTekin101there's market adjustment in China leading to oversupply and cheaper goods price. Deflation isn't a problem, it's just an indication that something wrong somewhere
Deflation is good for the workers. Inflation is good for the Jews.
I wish we had some deflation. Inflation sucks and the FED shouldn't have stopped raising rates.
thats the plan, how china will dominate the world and underprice the US and EU
What you need is a pay raise to keep up with inflation. Deflation isn’t good for anyone except creditors.
@@TravellingAllendeflation is good for everyone except for the rich. Decrease in profit margin
Short term deflation is good, but long term deflation sucks
I would say some Chinese buying their 4th or 5th homes
While 300 hundred million rural Chinese are still expected to move to the cities but can’t find affordable homes
Isn’t the best kind of inflation
In economy 101 they say when the price is high, demand will be lower, when the price is low, demand will be higher. Why this is not the case in deflation situation?
Cause deflation ain't just the drop of the price in one single product, it is the decline in prices around the whole economy.
Imagine food and gas and medicine and eletronics all dropping in prices continuosly... so people stop buying stuff hoping they'll get even cheaper.
That have the potential to really slow down the economic wheel.
When prices are growing people urge to buy before they get even higher.
When prices are kind of stable people buy when they need or when they feel like.
When prices are going down, everybody keep their money cause money is increasing in value compared to products and services.
And if nobody buys, the economy goes sour. Remember during the pandemic when people were only buying the essentials so people working on leisure and tourism industries were getting fired cause of the lack of business?
it's more about lack of confidence in China's economy. if you believe that tbe economy will only get worse, you rein in your spending to prepare for the worst. No demand, lower prices. Market forces takes over.
@@_orodrigofernandes Bro, are you really going to stop buying food, medicine or petrol because you could get them cheaper in a year? Good luck.
@@MollyGermek you missed the point. The modern complex economy is not based on "essentials". If people only buy food and medicine, and stop buying the rest of things, money won't flow, people won't get paid, so the econony shrinks.
Just Google about "deflation". It's a much harder circumstance than inflation.
While inflation is manageable cause it MIGHT mean there is more money circulating the economy cause more is being produced and consumed, deflation means people ain't buying "stuff", they're just saving the money cause money is getting more valuable than products.
Why would you buy a car today for 100k if last month it costed 105k and the month before 107k?
Economies can get really messy. Just look at South American economies since 1900...
Looking at China through coloured lens.
An analyst can always find negative things to say even in the best situation and showed up their bias.
There a Chinese phrase - picking bones from egg shells.
Deflation caused the Great Depression, why do you think China is so worried about people talking about it on the Chinese internet?
Chinese being butthurt when you say one negative thing about China…. lol “wuaaah but what about US wuaaah”
@@bullpup1337Butthurt? lol. Stuff are getting cheaper in China. Enjoy your high prices getting higher and higher😂😊
Am I the only one who doesn't like the idea that "Prices have to go up forever, or else."?
For those who want US prices to roll back to 1950's levels 🤣
How about enough normal people can afford homes again. A house built in the 1950s is half a mil.
@@mattheww.6232 Don't buy houses in expensive areas then? Everyone wants to buy house in good areas but they don't want to work hard and smart for it. People only know how to blame and blame.
In China in 2008 around 70% of the people in their real estate markets were buying their 1st homes in their cities
By 2018 around 70% of the people in their real estate markets were buying their 2nd and 3rd homes in their cities
That’s why you are hearing about problems with their property developers these days. Because back in 2010? Their Central Government started cutting of money flow to these developers.
Thus why you heard about Shadow Banks and Underground Economy back then, that their Government had to come into to shutdown or regulate.
Even then, It took them almost 14 years to get their overheated real estate under control
Heck they were about to introduce a nation wide property tax, but then trump started the trade war in 2018
Why is their Central Government doing this?
Because there are still a few hundred million poorer rural folk they still expect to move to the cities to join their more well off urban city folk countrymen.
Problem is these property developers were building higher end homes, and not building the affordable homes these rural migrants will need
In China
Owning a home in the city you migrate to? Affects your employment, health, education and even marriage prospects don’t have a house you don’t get married
Thus the common prosperity push and the crackdown on the overt displays of wealth in China
Their Government probably figured out you disenfranchise the people at the bottom of your society they are the ones most likely to act out in protest
@RyanOKaiser do you blame people for wanting to invest in homes in good areas 😂
@@RyanOKaiserLOL. Your mentality is akin to telling people without health insurance to not get sick. Thanks for coming out buddy.
Inflation, USA: economy is booming;
China: economy is poor.
Deflation, USA: inflation is curbed, economy is experiencing a soft landing;
China: economy is poor.
Only Western media can make cheap prices sound bad. Well, maybe it's bad for people/businesses that want to keep prices high and compete against cheaper Chinese goods at the same time.
Cheap prices caused the Great Depression
I think most countries central banks have a target of a few percent inflation, also China, which currently has a target around 3%. While it might seem bad with ever increasing prices, most economists, including Chinas, seem to agree that is preferable to the alternative.
@@Flipflopflopperfdr policies exacerbated depression.
@Flipflopflopper The Great Depression was caused by many things. Singled out only cheap prices is disingenuous.
For the average Chinese person, it’s definitely bad.
some say if you keep repeating a lie it will come true. in this case, the lie is that deflation is terrible, worse than inflation, etc. it's not true. deflation is bad for the ultra wealthy, for the people who want society to be a consumer society. deflation is good for regular people, because it means they're actually wealthier because their money goes further than before.
In America, things must be so expensive that people can’t afford decent food or pay the rent only then the economy is good😂
At least the numbers look good, even if half of the population are homeless and the other half on food stamps.
say the wumao bot😂
@@fuckheinschitt239 The question is, is what this wumao bot says is true? *crickets*
The more I watch such nonsense, the more I am convinced how much more stable and adequate the Chinese economy is than the US economy. It’s a pity that Western oligarchs will never allow such things to happen in their country, because common people should not live well.
China sneezes and the whole world is catching a cold?
Pretty much. Same as the US.
US trade with China is only a few % of US GDP
Like Covid
❤❤Only bad things come from WSJ ❤❤
so in china wages r raising and food and stuffs are cheaper , i do not see anything wrong for its citizens ?
They explained the issue pretty clearly. Prices continually going down means that people are not going to go out and buy things (except essentials). This is bad for business as no one is buying cars, houses, tech, and luxury goods. This leads to people being fired, companies downscaling, losing money on investments, etc. Lower prices sound great on paper, and sometimes are alright if people are still going out and using their money, but that typically is not what happens.
Wages goes down for most people.
@@nntflow7058Real wages literally go up with deflation and go down with inflation, it's a fundamental economic principle.
China is one of the only countries in the world where real wages rose last year.
@@vlhc4642 😂 You don't anything about economics do you?
@@nntflow7058 The equation for real income is Real Income = Wages / (1 + Inflation Rate). Do I need to explain fractions to you?
Next time save yourself the humiliation by loosing up econ 101 first.
It's almost like infinite growth year over year is an unsustainable system and will inevitably collapse.
Do you know why prices are skyrocketing? Due to export restrictions imposed on the manufacturing countries of the goods, many countries such as the Philippines, Vietnam, Malaysia, etc. purchase goods from the manufacturing countries and label them with their own country before selling them to Europe and America. The result is that Europeans and Americans are paying for this bill themselves. That's right, the manufacturing country I mentioned is China。
Nope. That is fake news…
depending on the amount of Chinese inputs into the products, that could very well violate trade compliance laws. you can't just move something made in china across a border then label it as being made somewhere else
@@alquinn8576 Tell me, there is a product with a few screws left that haven't been tightened. If I buy this product and tighten the screws, can it be used as my product? Can I publicly claim that I did it and that it can be sold worldwide?
@@文竹观羽 it depends on a lot of things, but often, something that trivial would not justify a country of origin other than China, if that's where 99.9% of the work and inputs were sourced. I work with people in trade compliance, so I absorbed some of this info, though I'm not in that game myself.
@@alquinn8576 If the manufactured goods are commodities such as tomatoes and cotton, can the country of manufacture be determined?
Peter Schiff says deflation is the result of increased efficiency, so it should be embraced. I will never complain of lower prices!
Not sure why economies have to be growing all the time. Japan seems to be doing fine.
Yep. Stockmarkets owned mostly by the rich were going down. So unsurprising the obsession with growth.
not so much local govt propping up real estate prices, it's that they are NOT allowing realtors to sell property below what the officials perceive as an acceptable price!
Japan is also unique with a very aging population, and a shrinking workforce and meager birth rate.
China has all these too now
All developed economies are experiencing this. The world population is unlikely to exceed 10 billion.
uhhh haha, chiner too
China is one of the fastest aging populations on earth
Inflation resulted in the rise of facism, and world war 2. What has deflation cause other than a sluggish economy?
Deflation is a boon for consumers and the bane of governments addicted to money printing
Very interesting! Serious issue, but I like the way they explain and simplify things.
In 2023, real China's 🇨🇳 economy shrank -3.5% as opposed to 5.2% expansion as officially announced.
Interesting video! Thanks!
Why are they comparing China to Japan. That's like apples to fake apples. 😂
deflation is a good thing. good for savers. whoever came up with the 2% inflation target is bogus, stealing 2% from us every year as a goal?