China Morning Missive

Once again, deflation in #China is back in the headlines. The direction of pricing shouldn’t be a surprise to anyone given the continued path of “shock to the system” taken by policy makers.

The only real question is whether these very same policy makers are willing to allow for real pain to persist at the household level for yet another year.

While there is evidence that China’s economy is now past peak pessimism, there remains deep concerns if a turnaround is truly underway. I’ve no idea and, quite frankly, I doubt the leadership in Beijing has any idea either.