>>539585537
>> should China face a 2008-esque mortgage crisis, CCP can order the banks to structurally write off the mortgages
And reduce their means to export deflation.

Do the chinese really just spend their lives running damage control online for the retarded things their government does?

What an embarrassing existence.

>>539585537
In many great Empires it was a common practice to periodically write of debt.

>>539585977
The real estate slump didn't just hurt developers; it broke the primary engine of Chinese domestic consumption and forced Beijing to pivot its economic policy toward factory output.

In China, real estate historically accounted for roughly 70% of household wealth. When property values reduced (down 20% or more from their peak), trillions of dollars in household paper wealth vanished. Faced with falling asset values and uncertain mortgage debt, Chinese families cut back spending. This created a severe domestic demand deficit, pushing Chinese consumer prices into zero or deflationary territory.

Historically, massive amounts of credit and state bank lending flowed into property development and municipal infrastructure. As the property bubble burst, Beijing deliberately redirected that financial pump away from real estate and into industrial manufacturing. Banks and local state-backed vehicles flooded factories with low-interest loans to keep economic growth afloat.

This combination created an imbalance:
Production surged due to heavy manufacturing investment.
Domestic consumption remained crippled by the real estate crash.

With factories producing more physical goods than Chinese consumers could buy, domestic companies entered price-cutting wars ("involution") just to clear inventory. To stay solvent, Chinese manufacturers turn to foreign markets, undercutting international competitors with state-discounted exports.

Local governments in China historically generated up to 40% of their revenue from selling land rights to property developers. When developers stopped buying land, local governments lost their primary funding source. Deprived of cash, municipalities could no longer support local infrastructure projects or boost consumer spending through local subsidies, deepening the domestic demand vacuum even further.

This entire process is how China's domestic property-induced deflation is exported to the rest of the world.

>>539586236
Also, if China stops exporting deflation, America's exported inflation becomes far more painful and potent for the rest of the world. China’s cheap exports enable the US to offset it exported inflation.

The global economy currently relies on a balancing act:
The US produces demand and liquidity (printing dollars, running trade deficits, spending heavily).
China produces supply and price suppression (lowering the manufacturing cost of everyday physical goods).

When the US exported inflation by bidding up the price of oil, grain, or services globally, cheap Chinese manufactured goods (electronics, clothing, appliances, solar panels) helped keep overall consumer price indexes (CPI) low in foreign countries.

If China stops exporting cheap goods, that deflationary shock absorber vanishes. Prices would rise everywhere, leaving foreign economies exposed to the full, unmitigated weight of US dollar inflation.


https://executiveconcern.substack.com/p/celestial-empire-5dd

>>539586012
a swarthy pair of hands located in Langley wrote your post

>>539585537
Because Boomers are older Gen Xers think that houses are there to pay for their pensions because they bought them for dirt cheap.