Financial Sector


The Renminbi vs. Western Currencies: An Inflationary “Paradigm Shift” Perspective

As an economist, you oftentimes risk ridicule for the mere mention of the word “inflation” among your peers, for the simple reason that in the recent and relatively recent past, deflationary rather than inflationary forces needed to be tackled. Over the past not decade but (two) decades, we have witnessed a downright collapse in the


Land Investments in China… and Beyond

In the economic environment which preceded the March 2020 crash, with stock markets where ultra-high valuations were the norm and investors dreaming about achieving generation-defining wealth by investing in tech companies run by individuals who apparently have never used the word “profits” given the complete absence of even remote perspectives pertaining to just that (a


Chinese Savers in a Currency Debasement Framework

On more than one occasion, we have explained that compared to Western savers (who have flaws of their own, of course), Chinese savers are let’s say less sophisticated for a wide range of reasons. Before continuing with this article, it therefore makes sense to enumerate the most important reasons and take it from there. Please


Are Chinese and Western Savers Being Bailed Out or Sacrificed?

Here at and on pretty much any let’s call it financial outlet, quite a bit of energy has been continuously dedicated to market participants (from the average consumer to large corporations) who have been caught off-guard by 2020’s developments or, the same way, by the Great Recession or any other past calamity. We’ve written


Luckin Coffee Case Study

There has recently been a fairly significant scandal involving one of the top companies in China. This company was being referred to as the Starbucks of China, however, after a surprising development, it came out that this company was forging sales and misleading investors. They forged online sales through their mobile app to make investors


The 2020 and Post-2020 Limits of Monetary Stimulus in China and Elsewhere

Here at, we like to keep our thoughts and website organized so as to deliver the best possible results and in the spirit of just that, it makes sense to start with a bit of an inventory of (quasi-axioms) before proceeding with today’s article, one through which we will try to identify the limits


Can Excessive Stimulus Lead to Systemic Confidence Loss in China and/or the West?

In a previous article, we have explained that governments and central banks from all around the world are embarking on what seems to be a one-way (monetary as well as fiscal) stimulus journey and that China will most likely not exactly represent an exception. In fact, a compelling case could be made that Beijing set


Banking Reform In China

It’s no secret to anyone that the Chinese economy has been expanding rapidly over the past quarter-century. Nearly all sectors of their economy have been growing. However, the banking industry has not been adapting to match this rapid growth. This could be a cause for alarm because banking, much more so than other industries, plays


The Implications of 2020’s Bailouts in China and… Pretty Much Everywhere Else?

Right from the very beginning of the COVID-19 situation (before it was even called COVID-19), China made it clear that it will do whatever it takes to bail out companies and, indeed, it has injected vast quantities of capital into the proverbial system to ensure companies stay afloat (especially in light of the fact that


Is China Likely to Deal with an Economic or Financial Crisis? What About Other Economies?

Those who compare the 2020 situation to let’s say the Great Recession, in our opinion at least, oftentimes fail to understand the fundamental difference between an economic crisis that affects industry after industry in a meaningful manner and a financial crisis which came as a result of Wall Street recklessness correlated with consumer greed and