China May Need Fiscal Help to Boost Consumers, Pettis Says

Michael Pettis, senior fellow at Carnegie Endowment for International Peace, explains why Chinese officials may need to consider direct support to households in order to spur economic growth.
For more on this story, please see: www.bloomberg.com/news/articl...

[@zaozhang1332]

He is by far the best China Macro Economist.

[@MetaView7]

LOL

[@lukehua5989]

dude, he has no chance to sell his "wealth transfer" plan to Chinese

[@HKim0072]

Always liked how Pettis describe things.

[@user-nt4gf6to5n]

Property bottom. What a joke!😂😂😂😂

[@user-yy9hk9od9u]

Too late for that.

[@jerryrichardson2799]

Pettis telling it like it is, thanks.

[@shawnsmith524]

millions people lost there life saveings investing to the houseing market the chinese dream failed them many are fleeing to other countrys to start new life after they lost everything

[@lastChang]

Providing direct support to households to save Chinese economy is like throwing a cup of water on the forest fire.

[@ssuwandi3240]

Time for Refugee Chang to go home. Humanitarian visas wouldn't last with that Extremists attitude

[@krawk8838]

imagine using this theory on the us economy its like putting on a plaster to cure cancer

[@AhmetTekin101]

​@@krawk8838It's a reality that the Chinese economy is in a mess, the US is not.

[@seymorefact4333]

US socialist regime bailout the bankers and 1% ALWAYS! BRAVO CHINA for not playing to the speculators! BRAVO! USA HAS $36T DEFICIT because of ALL THE BAILOUTS!

[@zhanjas]

@@AhmetTekin101are you sure?

[@ssuwandi3240]

He conveniently skipped the 3% deficit fiscal stumulated policies

[@ArabicReja973]

Stimulus = borrow, print more money + give it to the needy --> pay more interest + lower credit rating.

[@relax-ie3mp]

No battery degradation under -60C. Impressive!

[@posthocprior]

There’s another way, not mentioned, support market based innovation. The Chinese government spends a lot to develop industries. Specifically, it chooses established industries, such as solar panels, and decides to develop the infrastructure around it. Presently, it’s spending heavily on quantum computing technologies. This is an approach that depends on defining what the market has already set as what is in demand. The focus could be instead on finding new technologies or developing innovative companies. So, rather than the Chinese government picking which industries to invest in, it could fund institutions that help develop ideas that foster innovative companies.

[@HKim0072]

Damn dude. Learn how to shorten your point into something more concise. You literally could have said that in 1 or 2 sentences. And, no. CCP is the brain. People are just mindless bodies to execute the Supreme Leaders wishes. Get real.

[@Andy-P]

He does mention this. If China makes more the rest of the world has to make less

[@posthocprior]

@@Andy-P My assumption was that he was referring to low-wage manufacturing. I'm not.

[@slobodanblazeski0]

@@posthocprior He doesn't care about the sector, his point is that developed world won't accept China surpluses, neither would countries such us Brazil, India & Turkey that want their own manufacturing, The rest of the world doesn't is either too poor, or too small.

[@MrKeyman2002]

China does not need more fiscal deficits and fiscal deficits were never meant to be used to boost consumption, and consumption had never ever been sustained. Looking at the Chinese economy with "free market lenses" will always miss the real China....Command economy and free-market economy have different genes.............

[@Palerider2023]

These people are about a usefull as a screen door on a submarine. About as knowledgable as a cantaloupe.

[@MetaView7]

It is funny listening to advice given by ppl whose country is $34 trillion dollars in debt. This works out to each citizen young and old owing US$100k !!!

[@Palerider2023]

@@MetaView7 congrats! You saw a post going around the internet now you sound intelligent!

[@MetaView7]

@@Palerider2023 thank you for reading my comment, and thank you for taking the time to make a reply. Your effort is much appreciated.

[@waltertodd4479]

So you want to help the CCP, who hates the usa and actively plots our demise??? Does anyone else have issue with this thought?

[@mikewallace8087]

Yes, I do.

[@MetaView7]

they never hate. They are traders, not warriors. They want US to do well so that they can do more trades. Win-Win Cooperation is their principle.

[@louistan7560]

Notice his hands. People who try to impress does that.

[@HKim0072]

lol, didn't go to college / university? What professor DOESN'T use their hands when lecturing?

[@ktktktktktktkt]

0:36 "The Non-productive direction of infrastructure spending" I thought infrastructure normally resulted in productivity. Is he referencing the idea that China is spending on infrastructure for the sake of jobs and not because it will actually be used by people?

[@Andy-P]

Yes that is what he means

[@jacquesmassard9226]

Keyboard warriors out in force i see😅

[@harriemeeuwis978]

Why is he wrong? He forgets two things. First: China can compete at lower costs with high end manufacturing. They have an abundance of technical University graduates. So by pushing other (western) countries out of the global market. Second: they can and will produce an enormous amount of military equipment. That's how the US produced itself out of a deep recession in WW2 according to the economist Michael Wolf. So no fiscal stimulus needed. And those were the two main issues of the peoples congres. High end manufacturing and security.

[@theephemeralglade1935]

"May", lol.

[@jackjhmc820]

Can China do QE to combat deflation?

[@MetaView7]

They don't need to. They are doing just fine. Thank you very much.

[@mikewallace8087]

We are here because the corporate greed is too severe, destroying the customer's income to the place where there are few people able to buy their goods . CRASH !

[@susss188]

Talk about India or US please.

[@bhavikshah5016]

Dont expect that from Bloomberg... They get a big cut from CCP to keep on ranting about China... that's all Bloomberg does.. Watch CNBC instead for US markets

[@amunra5330]

What is there to talk about? India is a shit country and the US is collapsing

[@skydragon23101979]

It doesn’t matter what Japan, Europe, US or India wants China would increase manufacturing if the consumers buy Chinese goods around the world and I mean the global south here mainly.

[@lil----lil]

Call Alan Greenspan for Help!

[@SonjaBlackall-qb1nb]

Why help they ,ll only bite the hand that fed them. !! 😮

[@windsong3wong828]

China is in the same boat as the rest of ASEAN. Business is humdrum…..not great not bad. Property prices and rents are about 2019 level. The world economy is not great so it affects most economies. China should just do some infrastructure projects and that will boost the gdp and bring it across the 5% mark. The privilege of having saved lots of monies during the good times. China should expect the western media to keep talking its stock mart down ….be strong . As Warren Buffet say …in the short term the stock mart is a beauty contest, in the long run it is a weighing contest. China fundamentals are OK. Let the USA decouple from China. It is a lose lose….both the American and chinese companies will SUFFER. Nike, Boeing, Starbucks , Disney , etc will all trend down in the medium term.

[@happymelon7129]

100% correct

[@ssuwandi3240]

This dude doesn't even touch on China's global infrastructure. Very different to a global manufacturing style like Japan.