China’s yawnulus no longer benefits Australia

Advertisement

TSLombard with the note.


Slower growth but not zero growth. If Beijing is worried that unbalanced debt-fuelled expansion could lead to a financial crisis, social instability and foreign intervention, it follows that a balance sheet recession and a Japanese-style “lost decade” would also be anathema to Party policymakers.

Too little growth, even if it is of a “high quality”, poses another political and national security risk.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.