Chinese Economics Thread

[antiterror13]

In deflation economy, you can save money while an inflated economy you cannot save money?

Isn't there is a report saying China has 22 trillion in savings while America only has 1.2+ trillion.

not true, China’s household savings are indeed massive, around $23 trillion in 2025, while U.S. household savings deposits are closer to $9.8 trillion

 

[madhusudan.tim]

But, in a deflationary environment you have all the incentive to save the money, rather than invest or spend, as the real value of the money would evaporate faster in inflationary environment. These savings are statics and do not have the multiplier effect and therefore hampering the economy.

 

[antiterror13]

But, in a deflationary environment you have all the incentive to save the money, rather than invest or spend, as the real value of the money would evaporate faster in inflationary environment. These savings are statics and do not have the multiplier effect and therefore hampering the economy.

not true at all, the deposit is in the banks, not under the mattress

Then the bank will invest the money somewhere else, including mortgage and corporate loan, etc, etc

 

[CMP]

not true at all, the deposit is in the banks, not under the mattress

Then the bank will invest the money somewhere else, including mortgage and corporate loan, etc, etc

Exactly. It's hilarious to see poorly educated people quote economic logic from the 1800s as if people still stored their net worth in cash. These days money not spent goes into investments. Stocks, bonds, gold, crypto, real estate, etc.

 

[tresriogrande]

But, in a deflationary environment you have all the incentive to save the money, rather than invest or spend, as the real value of the money would evaporate faster in inflationary environment. These savings are statics and do not have the multiplier effect and therefore hampering the economy.

This is nonsense from the 1% who are over leveraged to rob the rest. They hate it when they can't inflate their debts away and people keep their wealth

 

[zbb]

Exactly. It's hilarious to see poorly educated people quote economic logic from the 1800s as if people still stored their net worth in cash. These days money not spent goes into investments. Stocks, bonds, gold, crypto, real estate, etc.

Even in the 1800s, deflation was not necessarily bad for the economy.

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. This prolonged period of persistent deflation is exactly when the US grew from an relative economic backwater to become the most dominant industrial power in the world.

 

[Wrought]

Capital inflows were sharply up this year on the back of tech optimism.

Foreign purchases of Chinese equities have hit their highest level in four years, in a sign global investors are reassessing a market that until recently was considered “uninvestable”. Offshore inflows into China stocks from January to October this year totalled $50.6bn, up from $11.4bn in 2024, according to data from the Institute of International Finance, a trade body for the global banking industry.

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