Topic: China/PBOC eases their monetary policy (Read 280 times)

It does look like the leadership of China is a bit panicked right now, but that is what happens when an authoritarian government builds it's foundations on an ever growing economy. Like any normal economy it will go through boom and bust cycles, but they lie to their people about many things so it is hard to judge what the real economic situation is like. Instead of being open about economic problems, they ban things like statistics instead. It is quite preposterous really and no normal government would do these things, but since Xi Jinping got his claws in, he will not allow himself to be seen in the history books as the first failure of a leader for many decades.

That's more like a double edged sword though. If they can "pump" their own stock market over in the US, then your speculation would be correct. Otherwise as the Chinese economy continues outperforming the inflation and recession ridden US economy, that could such the capital from US toward China which could mean more recession in the US and the stock market would actually crash rather than surge.

As for the effects on bitcoin, it could lead to bitcoin surge specially if the US stock market crashes and money starts "fleeing" that market. But bitcoin market generally becomes unpredictable during turmoil...

We could experience an economic downturn but we do not have to worry about it being as bad as it was during 1929. There are significant changes from that time to today that ensures that we will never experience the worst of economic crisis. First of all, there are far more investment options available to us now compared to back then. ETFs and cryptocurrencies to name some. Technology has made it easier as well for a lot of people to start saving and investing for their future. In short, we know better.

There are also many regulations in place that ensures many financial companies like banks, and such do not manipulate the market and show 100% transparency. New regulations now also protect consumers better. The government has more safety nets in place that will at least try to help their citizens in case of economic crisis.

How easy is it for institutional investors from the U.S. to sell their stocks in the S&P 500 and send their liquidity to mainland China? I believe it would merely be a few telephone calls for people like Warren Buffett, no? Because if the U.S. markets don't surge as strong as China's markets, I believe foreign investors will put their money in China, which might will be bad for the U.S. stock market, and MIGHT make Bitcoin have a weaker rise and underperform Chinese stocks?

¯\_(ツ)_/¯

China makes the West happy:

https://archive.is/JCVG6
Original: https://www.economist.com/finance-and-economics/2024/09/27/at-last-china-pulls-the-trigger-on-a-bold-stimulus-package

Did everyone see how the Chinese market performed during their trading hours?

 

Plus it has been SURGING since September 24, opening higher with a gap. I believe this might start sending VERY bullish signals on the rest of the world, especially to U.S. markets. If THAT starts to make U.S. markets surge then FASTEN YOUR SEAT BELTS! Bitcoin is going to the MOON.

Probably. But a 1929 sort of collapse? I truly hope that that would never happen, but it would be very laughable if that actually happened during 2029.

Although, a re-inflation around different regions of the world after rate cuts might make the Federal Reserve and other Central Banks be more aggressive in rate hikes/QT.


I'm very confident that it's not going to happen during 2024 and not while the Federal Reserve, the People's Bank Of China, then the Bank Of Japan will pivot from tightening to easing.

One of billionaires in China, smelt this crisis especially real estate market and decided to withdraw massive money out of China.

Li Ka-Shing Moves Investments Out of China. He did it about 10 years ago, and this decision was made because of his feeling on bad management of Xi Jinping together with high risk of real estate market there.

They waited for FED actions to follow and make their own decisions on rate cut. These latest activities from USA and China governments will help people feel more comfortable with their lives and become more actively in investment with best choice is Bitcoin. It comes at right time when Bitcoin market already went through several months of corrections and its next bull run seems to be ready.

And we know what happens to the market when an economy as big as China goes "BRRRRRRRRR" with their money.

We saw the US did this as well in 2020. They printed lots and lots of dollars causing the value of their dollar to go down, but most of the assets including the crypto market went up. I don't know, but there's a high chance that it will happen again. Prices of global markets going up including the crypto market and the catalyst? China's printing of money to stimulate their economy. Well, ever since the pandemic, their economy is declining already hence, they need to do this in order for their economy to be saved.

Which investment is the best to invest our money with? Like what the above post said, literally every asset class out there might be a good choice for investing our money. If I will choose one though, I'll pick the Stock Market particularly the US and even the Chinese Stock Market as well. Whatever the case is, as long as you're invested on any asset class right now, there's a high chance that it will go up. Now I believe this printing of money of the Chinese Government will be the catalyst towards what we are waiting for a long time. THE BULL RUN!!!.

Anything?

Stocks, gold, real estate... Whatever asset, just name it. Stocks are already booming and gold is doing ATH after ATH. Everything is going up. It is kind of scary in a way because what if this the last pump right before a major 1929 style collapse? What if we are getting fooled into a bull trap?

How many people here can stomach a 80%+ crash after buying assets from these price levels? I guess it is best to be cautious. You'll never know whatever fuckery hiding in the next corner.

I feel like controlled market will always be something that governments do, and governments are filled with regular people, while some people idolize presidents and politicians, they are humans just like us, and that means they have evil in them as much as any other person, usually more for politicians, so they can be bought and that means wealthy could control the politicians anyway they want.

This is why I think it's clear that we are going to face with a lot of trouble when we want a better economy, the wealthy will get richer, while we get poorer and we will be asked to learn to live with less and less, eventually living in commune housing with a hundred strangers will become the norm, and eating potato and rice everyday will become the norm, because rich will want every money we have.

Unfortunately the liquidity helps those more  and they have a pretty bad record with spreading their wealth.
The best consumer class is the low income class.

At corporate level management does not believe that their workers should earn more.
Just look at retirement's homes. Caretaker's wages are at $10 hour.

Ser, if you didn't get the point, I didn't post about destroying the Cabal. I was talking about how their policies, through the Federal Reserve, as a kind of "poison", and that Bitcoin is the antidote.

They want to keep increasing M2-Money-Supply? - Good for Bitcoin.

Plus I was wrong. China has a stimulus package planned to revitalize its economy. The money printer is ON! 👀

The US, the EU, the UK & China have all started a rate cutting cycle. This is very bullish for both stocks & crypto. More liquidity will flood into crypto which will send prices sky high. Buckle up, you are about to make generational wealth.

You are talking about something that has existed for thousands of years, there have always been those who had great power, and they still exist today. The "cabal", as you call them, cannot be destroyed by something like BTC, because this "antidote" is not something that people want, I think they have clearly shown that in the past 15 years.

I am not saying that in the future more people will not use BTC in one way or another, but it will be far from some global awareness that something needs to be changed.

I agree with this, most countries are hoarding gold for as long as they and for as much as they can. Only a few countries are selling their gold reserves and as for China, they're ranked part of the top 10 among the countries that have the most gold in the world and of course, US topping the rank based on the articles that are circulating online.

And as for China, this is where they're also dominating the global scene. While smart phones, they're not yet at their peak it's noticeable that the China branded phones are expanding globally and being liked by most consumers as they're more affordable. Also, they're also becoming of the biggest producers of the EVs globally.

Gold!

The global situation is deteriorating every day as tensions continue to grow and countries continue accumulating gold (specially China!). And there are a couple of things that could shoot gold price to the moon even more than it already has.
Things such as China invading Taiwan! or other conflicts expanding or generally speaking each time we climb the escalation ladder.

Basically stuff I've said in my gold topics are still true:
https://bitcointalksearch.org/topic/what-do-you-think-of-gold-price-in-long-term-5418480
https://bitcointalksearch.org/topic/--5432581

How do you call a 142 Billion injection if not printing money?

https://finance.yahoo.com/news/china-weighs-injecting-142-billion-015612259.html


They are considering it which means so far it has not happened.

China had a post-Covid economic slowdown, so they have to boost their economy by using every tool they have at their disposal.
The western countries had a post-Covid inflation(also impacted by the war in Ukraine), which caused them to raise the interest rates, but now the inflation is under control, so the interest rates will slowly go down. The global market is preparing for the 2025 bull run.
Will the Chinese interest rate cuts boost the price of Bitcoin? I really don't know. China isn't the most Bitcoin/crypto friendly country, despite the fact that many Chinese probably hold a decent amount of crypto. AFAIK, most Chinese people are really conservative when it comes to investing their money, so I don't expect massive crypto investments in China.

I believe your analysis really captures the essence of the changes in recent monetary policies. From 20 basis points down to that 7-day retracement rate in that repo rate. Truthfully, it was a more aggressive move than the market expected. and indicates PBOC is committed to growth stimulation. - - - This cut, in conjunction with a 50 basis point cut in the RRR, is a tactical step toward consolidation. credit and build confidence Even though your ability to access impact loans directly will be diminished.

It is an interesting note that it is not a strategy. It is a "money script," but it is a great target. This is a more measured reaction to the prevalent economic downturn. This is beneficial for growth sustainability. It is a case of ups and downs for those who think so. It would be a great time to invest in activities that tend to thrive in the event of more liquidity and consumer confidence.

Beyond Bitcoin, there could still be a chance that it survives in this recovering economy. Technology is still considered good. Especially for companies majoring in AI and automation. Another thing is renewable energy. Considering the continuous growth of demand on sustainable solutions globally, customers will enjoy increased expenses with confidence returning. Real estate investment trusts also offer great opportunities. It is particularly inclined toward sectors like logistics and data centers.

It's probably Gold and other surging precious metals if you ask me. Plus don't hold everything in Gold certificates. Buy a vault, and HODL actual Gold coin pieces that you can trade physically.


But the problem - Monetary Policy is controlled by a Cabal, and therefore it could be highly politicized to favor a small group of individuals. That's a sort of poison that's harming our society. Bitcoin is the antidote.

Everyone who knows a little about economics is aware that things that have been happening for decades cannot be fixed with these kinds of measures. Central banks simply have no choice but to raise interest rates in certain periods, and then cut interest rates afterwards, because this is obviously the only mechanism they can use to save the financial system from completely collapsing.

If everything in the world is measured in constant economic growth, which is simply not possible because we live on a planet that we use to the extent that we spend twice as much as the same planet can regenerate, then a very gloomy future awaits us unless there are drastic changes at all levels of society in which we live.

It is true that the USD is still holding up well as the world's reserve currency, but do you think that the BRICS will manage to change something about that? USD dominance has fallen by approximately 7% since 2016.

Interesting link with more info : Dollar-dominance-monitor

To me I think stocks should be a perfect option beside Bitcoin. Since rate cut is becoming a trend among the biggest economies, money will definitely move to stocks because investor are following where the maximum profit is possible.

While most big economies are cutting rates to boost their economies, the reverse is happening in most African countries. Nigeria for instance, raised interest rate to 27.5% from around 15% that it was previously amidst excruciating economic realities in the country, the reason for this I do not know because the economy is practically dead. 

When you hear news about the rate cuts in multiple Nations, it is usually a good news for the overall economy. Rate cuts usually happens when the inflation falls within a controllable zone. Rate cut happens to encourage the population to spend more so that more money is circulated in the economy. So China is probably trying to increase spending of their citizens to revive their economy. Same applies for the United States of America.

I am sure, some more Nations will decide to decrease the interest rate as the global spending slows down. Government needs to find ways to increase it and rate cut is just one of the ways.

It's probably contracting, or projected to contract. They're pivoting to a "less tight" monetary policy like the lowering of required down payments for buying real estate.


It's very VERY good, but the Federal Reserve and the Central Banks around the globe should be careful of re-inflation. Because the world uses the Dollar was its reserve currency and all their currencies are pegged on the value of the Dollar, the U.S. has the ability to "export" that inflation.

In the last days (and months) everyone decides to push their economies in this way, and now it's up to investors to accept the game and start new investment cycles. China is no exception in this sense, and according to what can be read, they have big problems with companies in the real estate business, which they obviously cannot solve at all.

Rates cuts are probably a good signal for global markets, and as far as investing in BTC is concerned, it is logical to expect that part of the money will flow in that direction, although one should not expect a large share of China, which still has a firm attitude towards the ban of such activities. Of course, people in China continue to invest in cryptocurrencies, but it's all on the black market and makes up a very small share of what it was before the ban.

 


It's not turning on their money printer to make to go "BRRRRR", but this is definitely a stimulus package to encourage more spending and growth in China's economy.

For the doubters/bears, that probably will confirm that we are indeed in a bull cycle, no?

What are the best investments that's not Bitcoin?