China is Hurting

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Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
China is hurting without a doubt. I mean, we've reported
on people, factory workers none too happy, not getting paid,
walking out. There's been reports of riots in certain places,
layoffs here, there and everywhere. China's Central Bank said it's
going to now cut interest rates and inject more liquidity

(00:40):
into the financial system. Again, we're giving away cash. Yeah,
not just the United States to giveaway cash, China can
do it too. This is in obviously response to the tariffs. Again,
they've got some economic difficulties that predate the tariffs. For years,

(01:03):
I've always got a kick out of their GDP numbers
and the information numbers that they put out. And then
I said, you know, you take what China has to
say and you basically cut it in half and maybe
then some Again, it's a communist country. They print what
they want to print. Their currency exchange rates are based

(01:27):
upon what their currency exchange rates what they want them
to be. It is a command in control economy, not communists.
Not communists. I know, they still got their hammer and
sickle star all that stuff. Kind of like Vietnam does too,
but not quite. It's a little bit different. They want

(01:49):
to stabilize the market, and again they're trying to get
people to get out and spend money. They've been trying
this for some time. People are not confident about the future.
They're nervous. They understand that the value of their homes,
real estate has fallen off a cliff in this country,
and it's been like watching a slow motion train wreck.

(02:13):
Because of that, they're not going out and spending. I
remember a gimmick that China tried. Jesus is I'm not mistaken.
This is going back to the two thousand and eight
Beijing Olympics where they actually tried to give people cards.
It was like, you know, spending cards like little debt.

(02:34):
Don't want to call it debit cards. That wasn't a debit.
They were giving people money on cards and it was
either use it or lose it, and you had to
spend the money within a certain period of time. This
is all obviously a way to goose the economy. The
bond market doesn't lie. You can take a look at
the interest rates in China and where they're at and

(02:58):
how low they're trying to bring them down. It is
an economy that needs needs something. Xi Jinping again took
this country in the wrong direction. In my opinion via
Husian Tau did things the wrong way, did things the
wrong way, decided to go full out command and control. Now,
this is the issue that they have and we've discussed

(03:18):
when it comes to China, because everybody thinks, okay, China's
gonna cave now again, China's not happy about the trade deal.
They do need to sell here to the United States.
They are hurting because they're not selling here in the
United States. But they are very much a lot like Trump,
a save face type of nation. Like Donald Trump is
again a save face type of guy. The difference is,

(03:42):
and I've explained this before, as we have elections, they
don't watchdog on Wall Street dot Com