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So, the New York Times has a headline:
China Deflation Fears Raised By Falling Prices For Food and Cars
No. China’s growth is fine, and some products dropping in price is also fine. Car prices are dropping fast because China has a competitive market for car production: they have hundreds. That is driving tech improvements and price competition. This is a good thing, it is not based on “no one has enough money to spend so everyone has to drop prices” which is what caused the Great Depression (the deflationary episode that makes everyone quake.)
Yes, the Doomsday Clock keeps ticking — it’s now at 90 seconds to midnight, according to the Bulletin of the Atomic Scientists — but the ultimate time bomb never gets the attention that it deserves. Even as the possibility of nuclear annihilation looms, this century’s many warning signs retain the status of Cassandras. Presidents George W. Bush and Donald Trump withdrew the United States from vital pacts between the U.S. and Russia, the two nuclear superpowers, shutting down the Anti-Ballistic Missile, Open Skies, and Intermediate-Range Nuclear Forces treaties. And despite promising otherwise, Presidents Barack Obama and Joe Biden did nothing to revive them. Under the buzzword “modernization,” the American government, a thermonuclear colossus, spent $51 billion last year alone updating and sustaining its nuclear arsenal, gaining profligate momentum in... Read more