China’s slowing economy – liquidity trap

This is a useful read from Reuters on the difficulties China is facing, pushing on a string.

• China is awash with money and its growth is slowing.
• To avert a prolonged stagnation, President Xi Jinping’s administration may need to spend its way out of the problem.
• Yet this and other classic remedies to such a malaise may not be effective in Beijing’s “socialist market economy”.
• China’s condition may be seen as what economists call a liquidity trap, though the term means different things to different people.

Regardless of your view on China, this is a good learning piece. Recommended.

• signs are grim

This article was written by Eamonn Sheridan at www.forexlive.com.