The Breakdown China Brings Out the Stimulus Bazooka
Sep 27, 2024
China's economic turmoil sparks a massive stimulus effort, raising questions about its effectiveness amid deeper issues. Comparisons to past financial crises in the US and Japan shed light on potential pitfalls. Meanwhile, market responses show a stock rally correlating with increased crypto trading. Global liquidity shifts play a vital role in crypto adoption's future. Additionally, Bhutan's rise from the UN's least developed list and Argentina's radical economic reforms highlight contrasting paths amid global fiscal challenges.
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China's Economic Slowdown
- China's economy is facing a significant slowdown, prompting the government to implement stimulus measures.
- This marks the first time GDP growth might fall below the 5% target since the late 80s, excluding 2020 and 2022.
China's Poly-Crisis
- China's economic woes extend beyond GDP growth, impacting real estate and employment.
- The housing market faces a third year of decline, and youth unemployment is at a record high under new metrics.
Structural Issues and Unemployment
- Structural policies may worsen China's youth unemployment.
- Companies hesitate to hire graduates due to high costs associated with potential future layoffs.