I'd love for some deflation in the US. The gaslighting is pretty impressive.
You do not understand how the western ‘economic’ model works vs China’s.
In China, the economy works in a normal supply and demand balance. When supply is short, prices go up, but when production and technology increases supply, prices drop. Normal economics 101.
In the west, they don’t have a normal productive economy any more, rather a giant stock market. In a stock market, rising share prices (inflation) is life while a falling share price (deflation) is death. It is terrifying and must be avoided at all cost because the western economies are giant bubbles inflated massively over their truth worth with nothing but empty hot air and hype, and as soon as everyone realises that, it’s the end and the death!
The only way the lights stay on and their little house of cards keeps standing is if everyone continues to suspend disbelief and accepts that the prices charged are what things are worth. Because there isn’t remotely enough physical goods to underwrite all the IOUs western governments have created out of thin air in the form of endless money printing.
For China it’s different. In China and in this instance, they can let prices drop because competition is improving efficiency. Companies can charge less for EVs because they are make EVs at lower cost and still make a profit. There isn’t a risk of the bottom falling out the market because there are physical goods underwriting the price. If the price of EVs drops to $100 each by some insanity, you buy every EV on the market because get you physical goods with tangible value. You can’t make the same no-brainer call if Apple or Amazon or Tesla shares suddenly plummet to $100 per share.
As soon as you make the realisation and stop thinking of western economies as actual economies but rather stock markets, things suddenly makes a lot more sense.
