9/30/2024
By Charles Payne CEO & Principal Analyst

In a week with major developments, choosing which stands out the most is challenging, but when the dust settled after the closing bell on Friday, it was clear that China’s stimulus announcements moved the needle the most. Below are excerpts from a WSJ article on past stimuli and the latest effort.

The last line points to what many governments default to when they need short-term economic movement. They move away from efforts that might create common property to getting people to spend rather than save, which is the antithesis of prosperity.  

Extremely high savings in China were once a byproduct of people trying to escape extreme poverty.

Old habits die hard, and the Chinese are still great savers.  Remarkably, economists and politicians do not cite savings as a sign of prosperity but instead point to consumption as a sign of wealth rather than the transfer of wealth.

Money circulating in society has significant benefits, but money circulation based on massive debt and interest payments is a recipe for long-term poverty.

To read the full report, contact your account representative or email Info@wstreet.com.

Charles Payne
Wall Street Strategies

Add a Comment!