THIS IS BAD FOR THE GLOBAL ECONOMY>Using data on almost 70 everyday products and services from multiple sources, our analysis showed prices dropped more sharply than the headline Consumer Price Index indicates, especially for goods that ordinary consumers buy>Global institutions are sounding the alarm, with the International Monetary Fund projecting that consumer inflation in China will average zero this year — the second-lowest of nearly 200 economies it tracks.>The Bank of Korea warned in July that China could export deflation to its trading partners.https://archive.is/oJEbf
>>521119848>NOOO how will shekelberg and co buy another yacht if prices go down
>>521120873You don't understand anon, our economy will crash if the goyim get price decreases. The chosen ones are investing leveraged 50x to 100x with debt. They want to inflate the debt away while keeping the assets and you goyims will like it!
>>521119848NUMBER 11 CRASH AND BURNCHINKS ON SUICIDE WATCHhttp://www.google.com/search?q=china+collapse
>>521119848Sounds like a win.I guess this is why Trump wants to tariff America s to make them pay more.
>>521120873>>521123101>>521124091Are they Chink shills really so out of options they're going to declare companies operating at a loss as a good thing?Who is paying for them to stay open? Especially as the debt grows from both directions. The loss itself and then deflation making it harder to pay back.
>>521123101Yes, price decreases are actually bad. It means manufacturers make less, or even no profit, and you know what happens when there is no profit to be made? Nothing gets made?>I'll get my food cheaper!!What food? If there is no profit to be made farmers wont grow food>My house will be cheaper!What house? No one builds houses if there is no profit to make from building houses.>I could get a cheap car!How? No one will be making cars.
>>521124284I cant afford any of those things.
>>521119848You know what solves this issue? Tariffs
>>521124207Nice projection Chang. What happens when suppliers lower their costs? Importers keep their price the same and make more profits.
>>521124284No one in the USA gives a flying fuck about the health of Chinese manufacturers
>>521124284>people stop building houses>demand stays constant>over time this leads to increased demand to supply ratio, raising prices>prices go up,encouraging the building of new homes>people buy the homes, demand to supply ratio drops, prices go down>decrease in prices causes building to stop>but demand stays constant>over time this leads to increased demand to supply ratio, raising prices...
>>521124284>pirate flagFucking retard kill yourself now
>>521119848>>521119848If China really wanted to fuck us up, they would force us to go into hyper deflation because it would make everyone's debts increase over time instead of decrease, this would collapse our society prettt fast.
>>521124735Doesn't work like that because when prices drop you also get people just not buying.I mean, why buy a house now for $200,000, when in a year it's only going to cost $150,000? Infact, if deflation remains constant, why buy a house at all? You buy it then it becomes worth less and less and less. Your money is literally increasing in value the longer you hold off on buying things.There is a reason it's called a deflationary spiral.
