Anyone else catch the news of the approximately 2 trillion drop in money? (m1 & M2)
Higher interest rates have the effects of slowing money down. Is the current drop in M data a sign that deflation looms on our horizon?
It should be evident to all by now, that the roaring decades of China China China....growing growing growing, now, what should have been the work of Smiths invisible hand, we have benefit of hindsight.
As hindsight now shows, the growth was steered / accompanied by; extremely high amounts of MAL Investment. Mal Investment masquerades as growth, until hindsight is able to catch up with the abstractions embedded in the perceived momentum. As foreign capital poured in, the pursuit of growth became apparently, self evident.
Losses coming to light now across main stream living, housing, banking, labor arbitrage etc. were largely the result of irresponsible decision making due to the underlying nature of chinas autocratic economy. |
