China is Hurting
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China is hurting without a doubt. I mean, we’ve reported on people, factory workers, none too happy, not getting paid, walking out. There’s been reports of riots in certain places, layoffs here, there, and everywhere. China’s central bank said it’s going to now cut interest rates and inject more liquidity into the financial system. Again,
We’re giving away cash. Yeah. Not just the United States to give away cash. China can do it too. This is in obviously response to the tariffs. Again, they’ve got some economic difficulties that predate the tariffs for years. I always got a kick out of their GDP numbers and the information numbers that they put out. And then I said, you you take what China has to say.
and you basically cut it in half and maybe then some. Again, it’s a communist country. They print what they want to print. Their currency exchange rates are based upon what their currency exchange rates, what they want them to be. It is a command and control economy. Not communist. Not communist. I know they still got their hammer and
Sick Old Star, all that stuff, kind like Vietnam does too, but not quite. It’s a little bit different. They want to stabilize the market. And again, they’re trying to get people to get out and spend money. They’ve been trying this for some time. People are not confident about the future. They’re nervous. They understand that the value of their homes, real estate has fallen off a cliff.
in this country and it’s been like watching a slow motion train wreck. Because of that, they’re not going out and spending. I remember a gimmick that China tried, Jesus, I’m not mistaken. This is going back to the 2008 Beijing Olympics where they actually tried to give people cards. was like, you know, spending cards, a little debit, we don’t want to call it debit cards, but it wasn’t a debit.
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They were giving people money on cards and it was either use it or lose it. And you had to spend the money within a certain period of time. This is all obviously a way to goose the economy. The bond market doesn’t lie. You can take a look at the interest rates in China and where they’re at and how low they’re trying to bring them down. It is an economy that needs something. Xi Jinping.
again, took this country in the wrong direction, in my opinion, via Hu Jintao, did things the wrong way, did things the wrong way, decided to go full out command and control. Now this is the issue that they have and we’ve discussed when it comes to China, because everybody thinks, okay, China’s gonna cave. Now again, China’s not happy about the trade deal, they do need to sell here to the United States, they are hurting because they’re not selling here in the United States, but they are very much a lot like Trump, a save.
face type of nation. Donald Trump is again a save face type of guy. The difference is and I’ve explained this before as we have elections, they don’t. Watchdog on wallstreet.com
