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