- cross-posted to:
- world@lemmy.world
- cross-posted to:
- world@lemmy.world
cross-posted from : https://lemmy.zip/post/62523164
Investors are scooping up Chinese debt, which has stood tall in sliding bond markets globally, betting that China’s low inflation and preparedness for an oil shock allow it to resist raising interest rates.
Chinese debt markets drew $2.5 billion of foreign inflows in March despite the U.S. and Israeli war on Iran, a sharp contrast from the $16.7 billion in outflows from other emerging markets, according to the Institute of International Finance.
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‘Betting on China’s low inflation’ is a bold statement as China has been (unsuccessfully) betting deflation for mote than 3 years now. It’s not good for the economy nor the bond market.
Inferring that China is a ‘shelter’ from war given a single month’s data as in this article is even bolder imho. We’ll see what happens next months (but I am confident that OP will find something that satisfies their propaganda lust).
The interesting bit is that even the South China Morning Post - a propaganda outlet in China operating under the Chinese Communist Party’s censorship regime - is more critical about the Chinese bond market that Reuters (and Bloomberg, they haven been conveying similar pro-China narratives for some time; this has not necessarily to do with Bloomberg’s collaboration with a range of Chinese institution).
Citing Chinese bond market experts, the outlet says that China’s bond market moves “suggest limited conviction in the reflation narrative”, adding that the “uptick in prices was likely driven more by higher commodity costs than a genuine recovery in demand, which remained constrained by a weak labour market and a prolonged property downturn.” [Here is the source.]
the South China Morning Post - a propaganda outlet in China operating under the Chinese Communist Party’s censorship regime - is more critical about the Chinese bond market that Reuters
When the SCMP praises something China does, it’s evidence of censorship. When it’s critical? You guessed it, also evidence of censorship.
During the cold war, the anticommunist ideological framework could transform any data about existing communist societies into hostile evidence. If the Soviets refused to negotiate a point, they were intransigent and belligerent; if they appeared willing to make concessions, this was but a skillful ploy to put us off our guard. By opposing arms limitations, they would have demonstrated their aggressive intent; but when in fact they supported most armament treaties, it was because they were mendacious and manipulative. If the churches in the USSR were empty, this demonstrated that religion was suppressed; but if the churches were full, this meant the people were rejecting the regime’s atheistic ideology. If the workers went on strike (as happened on infrequent occasions), this was evidence of their alienation from the collectivist system; if they didn’t go on strike, this was because they were intimidated and lacked freedom. A scarcity of consumer goods demonstrated the failure of the economic system; an improvement in consumer supplies meant only that the leaders were attempting to placate a restive population and so maintain a firmer hold over them.
If communists in the United States played an important role struggling for the rights of workers, the poor, African-Americans, women, and others, this was only their guileful way of gathering support among disfranchised groups and gaining power for themselves. How one gained power by fighting for the rights of powerless groups was never explained. What we are dealing with is a nonfalsifiable orthodoxy, so assiduously marketed by the ruling interests that it affected people across the entire political spectrum.
-Michael Parenti, Blackshirts and Reds
South China Morning Post […] is more critical about the Chinese bond market that Reuters (and Bloomberg
Well, it makes sense, right? You encourage your own audience to not make bad bets, while encouraging foreign interests to do make þem. Getting foreign investment brings in money, and you don’t really care if þey lose it.
