China's producer prices plunge the most in seven years as deflation hangs over economy

[GON]

China's producer prices plunge the most in seven years as deflation hangs over economy.​

Interesting read. Going through the article, I wonder if the story of what is truly happening is missed. Seems the USA and most western nations might welcome this news in many aspects.

As always, one should excercise extreme caution on any number, fact, or figure coming out of China. Nothing released from China is ever verified, validated, or accredited -ever. The entire story could in fact be propaganda/ information campaign, and the author took the bait.

China's producer prices plunge the most in seven years as deflation hangs over economy

Deflation seen in China's producer prices are in contrast to the high levels of inflation that global central banks have been fighting to bring down for more than a year.

www.cnbc.com

 

[totegoat]

Sounds like China is investing in Cuba.

 

[Zee09]

China is just another has been... The world has moved on to greener pastures

 

[GON]

China is just another has been... The world has moved on to greener pastures

Kind of like Bill Gates moving out of software and into crop producing farmland?

 

[Zee09]

Kind of like Bill Gates moving out of software and into crop producing farmland?

Without getting into the prohibited. Big business is constantly looking for the next cheapest labor market. China had its day..

 

[buster]

Central planning can only take you so far. They're constantly distorting markets, more so than even we do here.

There is and will continue to be constant PR hit pieces out in the media. Some will overhype China others will downplay it.

China's economy stumbling, likely headed for a lost decade says ex-IMF official | Forexlive

www.forexlive.com

 

[buster]

Without getting into the prohibited. Big business is constantly looking for the next cheapest labor market. China had its day..

A guy I know from Wuhan said the same. In fact many of the middle class Chinese are starting to feel the same pressures many developed nations in the west have been experiencing.

The more aggressive China gets, for better or worse (not saying or judging whether they are right or not), will likely only hurt their economy. Xi needs the west as much as the west needs China.

Joined at the hip for better or worse.

 

[Zee09]

Kind of like Bill Gates moving out of software and into crop producing farmland?

Yeah .. the times are a changing....

 

[PandaBear]

I have heard a lot of people are refusing to get married and climb the corp ladder, and decided to work with minimum pay just enough to live a single life. The original drive to make a lot of money in the last couple generations were to raise their families and kids into the middle class, now they are in middle class a lot of parents want to buy homes for their kids, and the parents of potential brides demand "payment" from the groom side to be as high as 60-90k USD, sort of a number that is an entire life saving in working class. A lot of people conclude that if they can't afford to get married, get kids into a good school district, what is the point of working hard and buy an expensive home? They can just work enough to live off of and have fun.

The main problem is not export, the middle class don't care much about the factory jobs, the bigger problem is the rural and far suburb real estate in the "ghost towns", they are dropping like 20-40% and foreclosure is happening.

The workers from rural towns are now preferring delivery driver / biker jobs instead of factory work.

 

[PWMDMD]

I'll take 6% inflation over deflation any day....

 

[Rmay635703]

I'll take 6% inflation over deflation any day....

Deflation or inflation both have winners and losers.

Our country historically was setup to survive deflation without issues.

Today, I agree our whole system falls down with deflation because of bad decisions made in the last 45 or so years

 

[Zee09]

I'll take 6% inflation over deflation any day....

Most women would agree

 

[walterjay]

Their problems is another reason why they may want Taiwan.

 

[fdcg27]

Actual asset deflation is very dangerous in any economy.
Watching the value of an asset decline even as the nominal currency in which you pay it off becomes more dear is a really bad situation.
Also, deflation sends the wrong signal to producers, telling them to produce less as prices decline. Declines in wages cause a contraction in workforce participation, so less wealth can be created since an economy ends up with fewer workers relative to its population.
This is the reason that central banks target a low level of inflation rather than actual currency stability. They want to stay well away from the dangers of actual deflation.

 

[GON]

Top 20 Countries with the highest and lowest inflation over the past five years. I think the countries with the lowest inflation/ deflation.

Highest inflation:
Sierra Leone 18.22 16.03 14.80 13.45 11.35 14.77

Guinea 8.91 9.83 9.47 10.60 11.60 10.08

Turkmenistan 8.04 13.30 5.09 7.58 12.45 9.29

Kyrgyzstan 3.18 1.54 1.14 6.32 13.00 5.03

Haiti 14.74 12.89 17.31 22.95 16.17 16.81

Nigeria 16.50 12.09 11.40 13.25 16.91 14.03

Turkey 11.14 16.33 15.18 12.28 16.98 14.38

Libya 28.05 -1.20 0.21 2.82 21.11 10.20

Zambia 6.58 6.99 9.15 15.73 22.80 12.25

South Sudan 187.85 83.50 51.19 23.98 23.00 73.91

Angola 29.84 19.63 17.08 22.28 24.39 22.64

Ethiopia 10.69 13.83 15.81 20.35 25.20 17.18

Iran 9.64 30.22 34.62 36.44 39.34 30.05

Yemen 30.40 27.60 12.01 23.10 40.75 26.77

Argentina 25.68 34.28 53.55 42.02 48.41 40.85

Suriname 22.02 6.94 4.39 34.89 54.39 24.53

Zimbabwe 0.91 10.61 255.29 557.21 92.54 183.31

Lebanon 4.48 4.55 2.90 84.86 154.75 39.55

Sudan 32.35 63.29 50.99 163.26 194.60 100.90

Venezuela 438.12 65,374.08 19,906.02 2,355.15 2,700.00 5,358.34

Lowest Inflation:

Samoa 1.30 3.67 2.19 1.49 -3.00 1.13

Comoros 0.09 1.70 3.70 0.80 -1.05 1.05

St. Kitts and Nevis 0.70 -1.04 -0.33 -0.59 -0.97 -0.45

Macau 1.23 3.00 2.75 0.81 -0.25 1.51

Japan 0.49 0.99 0.47 -0.03 -0.17 0.35

Greece 1.14 0.77 0.52 -1.26 -0.11 0.21

Ecuador 0.42 -0.22 0.27 -0.34 -0.01 0.02

Aruba -1.03 3.63 3.94 -1.31 0.27 1.10

Switzerland 0.53 0.94 0.36 -0.73 0.44 0.31

Equatorial Guinea 0.75 1.35 1.21 4.80 0.52 1.72

Marshall Islands 0.06 0.76 -0.49 -0.26 0.60 0.13

Malta 1.26 1.74 1.52 0.79 0.71 1.20

San Marino 1.05 1.76 0.95 0.22 0.84 0.96

Thailand 0.67 1.07 0.71 -0.85 0.86 0.49

Bahrain 1.39 2.09 1.01 -2.32 1.00 0.63

Palau 1.10 1.95 0.61 0.68 1.00 1.07

Trinidad and Tobago 1.88 1.02 1.00 0.60 1.04 1.11

China 1.56 2.11 2.90 2.39 1.07 2.00

Fiji 3.35 4.08 1.77 -2.59 1.10 1.54

Djibouti 0.57 0.15 3.32 1.78 1.16 1.39

Portugal 1.56 1.17 0.30 -0.12 1.19 0.82

 

[SC Maintenance]

Thank you for posting.

US PPI has been declining - or rising less quickly at least. Just not as fast as China.

I have read multiple articles on this - both decline in PPI and the failure to launch on the China re-opening. What they never say is why - are raw commodity supply chains improving, or demand dropping, or both?

Whichever way its likely good for consumers.

Producer prices for final demand rose 2.3 percent over the year ended April 2023 : The Economics Daily: U.S. Bureau of Labor Statistics

Producer prices for final demand rose 2.3 percent over the year ended April 2023. A 3.0-percent rise in producer prices for services and a 2.6-percent rise in producer prices for trade contributed to this price increase.

www.bls.gov

 

[Fla]

China's producer prices plunge the most in seven years as deflation hangs over economy.​

Interesting read. Going through the article, I wonder if the story of what is truly happening is missed. Seems the USA and most western nations might welcome this news in many aspects.

As always, one should excercise extreme caution on any number, fact, or figure coming out of China. Nothing released from China is ever verified, validated, or accredited -ever. The entire story could in fact be propaganda/ information campaign, and the author took the bait.

China's producer prices plunge the most in seven years as deflation hangs over economy

Deflation seen in China's producer prices are in contrast to the high levels of inflation that global central banks have been fighting to bring down for more than a year.

www.cnbc.com

It's sounds like the economic "good times" are over in China. I wonder if maybe this is why they're suddenly getting so frisky militarily? Perhaps they're trying to keep the good times rolling by forcibly trying to acquire more territories, and more captive markets in newly developing countries (and poorly developed countries such as Mexico and Cuba), outside of mainland China.

 

[97prizm]

China is just another has been... The world has moved on to greener pastures

China has slowly embraced free markets. I don't think there was a single Chinese Billionaire 25 years ago. Now there are quite a few. When a population becomes more educated the less they're willing to work low end factory jobs.

 

[SC Maintenance]

China has slowly embraced free markets. I don't think there was a single Chinese Billionaire 25 years ago. Now there are quite a few. When a population becomes more educated the less they're willing to work low end factory jobs.

Thats true, but they also have far fewer people to work in those factories. China has the worst baby bust the world has ever seen - both due to the one child policy, and drop in general. Every country that is industrialized has a declining young population, China is the worst of all of them.

 

[GON]

It's sounds like the economic "good times" are over in China. I wonder if maybe this is why they're suddenly getting so frisky militarily? Perhaps they're trying to keep the good times rolling by forcibly trying to acquire more territories, and more captive markets in newly developing countries (and poorly developed countries such as Mexico and Cuba), outside of mainland China.

War leader and strategist Chinese military general Sun Tzu, who is the doctrinal playbook for the advisory:

Appear weak when you are strong, and strong when you are weak.