Replying to Avatar Peter Alexander

Once again, zero fiscal stimulus out of Beijing. Ignore the headlines and all the talking heads that focus entirely on the top line number.

As expected, what was announced was a massive local government debt restructuring program. The priority is to clean up “shadow banking” finances.

Left pocket is just paying the right pocket. Zero stimulative effect.

China announces $1.4 trillion package to tackle local governments' 'hidden' debt https://www.cnbc.com/2024/11/08/china-expected-to-announce-highly-anticipated-fiscal-stimulus-package.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard

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Diego Valley 1y ago

Some say they were waiting for elections and fed meeting to take fiscal stimulus. Looks like folks were wrong on that front

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Peter Alexander 1y ago

The talking heads in the West just don’t know how to wrap their collective heads around a policy centered on fiscal responsibility. That is what #China is focused on.

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