China's Economic Policy Makes ZERO Sense

Chris critiques China's erratic economic policies. From wage growth struggles to real estate instability, discover why Xi's strategies fall short. Subscribe for more insights! www.watchdogonwallstreet.com

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 that we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
If one were to ask me to describe Chinese economic policy,
I would say it's poop throwing. Yeah, you know, the
old thing. We're gonna throw poop at the wall and
see what's gonna stick. That's stats China for you. Every
few months, it's like clockwork. They've got some new ingenious

(00:41):
way to fix their economy. Hey, here we go, let's
kick started again. Yeah. They want to basically stop deflation
by helping to revive of consumption by boosting people's incomes. Aha.

(01:06):
Another vague measure includes stabilizing the stock in real estate
markets and offering incentives to raise the country's birth rate. Okay, again,
you're taking a look at some of the things they're
looking to do. Beijing is going to push for reasonable

(01:29):
growth in wages and establish a sound mechanism for adjusting
the minimum wage. It's going to set up a childcare
subsidy system, as well as strengthening how investment can support
consumption and they don't have kids there anymore. And then

(01:52):
they give a list of things that they're going to do,
like celerate the development of new technologies such as smart
wearables and autonomous driving, supporting the opening of duty free
shops in cities where conditions permit. You go on down
the list here and it is whip there and it's

(02:14):
poop throwing. It's poop throwing. They still haven't figured out
that they need to get the hell out of the way. Now. Listen,
you can go back to Houjin Tao and Dang Xiaopeng.
They weren't completely out of the way by any stretch
of the imagination, but they weren't zee Ze. He's still

(02:38):
holding on to his Maoist ideas and philosophies, and it's
just it's been an absolute disaster for their economy, without
a doubt, every single time, every single thing they do
try to we're going to try to kickstart the economy
again again, look at a different way. It's like, you know,

(02:59):
there's some dead engine in a lawnmower that you have
to use, and somebody comes over in a hammer and
just starts hitting the motor in different spots again, that's
basically what they've done. Get out of the way, Get
out of the way. Stop with all of you your protectionists, nonsense. Here,

(03:21):
Let the chips fall where they may, and then you
got a chance at coming back and getting growth back
into your country. Until that point in time, it's not
going to work. Again, problems need to be dealt with.
And they the overall extent and the size of their
real estate bubble over there. Again, it's something we can't

(03:42):
even quite frankly comprehend it. It's massive, it's massive, and
again they keep trying to brush all of these things
under the rug. Nobody wants to have children over there.
They don't feel, quite frankly, that they have much of
a future. They've watched their entire net worth go into
the toilet. That's what they encourage everybody to know. Yeah,

(04:02):
everybody go buy as much real estate as possible, and
that imploded. They don't have much when it comes to
social security and safety nets. And guess what it's got
an aging population. I can go on and on and
on the myriad things we've talked about in the past. Again,
I look at this as an opportunity for this country

(04:23):
maybe to strengthen which I have no problem doing. Again,
I'm not one of those people out there that you know,
thinks that war with China is inevitmbent, that it's absolutely
ridiculous to strengthen tie with the country and try to
conduct more trade. Why do we want Why do we

(04:43):
want a failed state of over a billion people? Would
we want an advanced state that gee whiz we can
do business with? Could be me calling me crazy, Watchdog
and Wall Street dot Com