China’s Economic Crisis: Will a Stimulus Plan Work?
(00:01.068)
Sheer panic. Basically what’s taking place in China right now. China is pressing print, print, print, print, print, print. Yeah. The people at the top, they are starting to get it. They’re starting to get that they are in deep, deep trouble. You know, they’re calling it a stimulates blitz. Nah, I’d say it’s more the line of.
at this point in time, reducing the seven day reverse repo rates. I mean, a myriad of things, cutting the reserve requirement ratio by 0 .5%. That’s freeing up another $150 billion in liquidity, lowering rates for existing mortgages, cutting down payment ratio on second homes to 15 % from 25.
I can go on and on and on the various different things that China is doing right now because their economy is failing. Again, we told you this was happening. Okay, this is like watching a slow motion train wreck over time. This is what inevitably happens when you have a command and control economy. When you have Wizards of Smart at the top thinking that, yeah, yeah, yeah, I can control this.
I got this whole economy thing down. Yeah, I took an Econ 101 class. Yeah, whatever. You don’t. You can’t control mother nature. Look at it this way. Okay, I’m now here. I’m in a hotel here in Florida waiting to close on my house in a few days. There’s a hurricane coming. Hurricane in the Gulf of Mexico. Is it coming our way? Yeah, it is. Is it gonna hit us? I don’t know. You take a look at those models, those little
you know, spaghetti models that they throw out there. The wizards of smart there, they don’t know why they’re okay. They’re just guessing. And you know what? The weathermen are going to be more accurate than the people that think they can centrally plan an economy. You’ve got a billion plus people over in your country and you think you’re going to figure out all of the day to day interactions, transactions, interactions and manage that. Yeah. Good luck with that.
(02:24.434)
What you need to do is get the hell out of the way. Let chips fall where they may. Companies fail, let them fail. Don’t try to prop things up. Don’t try to help companies out. I know we do it here too in the United States and it never works. It always makes matters worse. Trying to put themselves in this situation and they’re trying to print their way out. Watchdogonwallstreet .com.
