For reference, Chinese yields are already lower than during the peak of the Great Financial Crisis and the pandemic meltdown.
Something huge is happening in China – and we should pay attention.
— Alf (@MacroAlf) December 20, 2024
The Chinese private sector debt as a % of GDP has exploded north of 200%, a figure which has proven to be a catalyst for many crisis in the past.
So when recently Xi decided to slow down the leverage party, property developers got in trouble and the housing market froze.
— Alf (@MacroAlf) December 20, 2024
…and yet Japanese households simply refused to kick off the credit engine again as they were still licking their wounds.
China is in trouble, and it's applying the wrong policy.
— Alf (@MacroAlf) December 20, 2024
What is happening in China?
China’s 1-year government bond yield has fallen below 1% for the first time since 2008.
This means that China’s 1-year yield has HALVED this year as their economic outlook as deteriorated.
Falling yields have raised some concerns that China’s… pic.twitter.com/N6sGV32RXy
— The Kobeissi Letter (@KobeissiLetter) December 20, 2024
Danger in China.
Do people understand?
Second largest economy in world DEFLATING now.
Fed concerns on inflation wrong.
Interest rates still too high in US and now fiscal policy will tighten, usd strengthen.
Liquidity coming to drive… #Bitcoin.
200k next yr doable. 🚀 pic.twitter.com/ECpmZv2lZT
— Dan Tapiero (@DTAPCAP) December 20, 2024
⚠️CHINA'S ECONOMY PROBLEMS ARE REAL⚠️
China's 1-year government bond yields trade at levels seen when the Lehman Brothers declared bankruptcy during the Great Financial Crisis.
China's economy has been slowing, consumer confidence is at a decades-low, the population has shrunk… pic.twitter.com/1lwHMFgxk4
— Global Markets Investor (@GlobalMktObserv) December 20, 2024