Deflation means the real value of debt increases. China's ageing and declining population therefore risks entering a debt trap. More and more money will be needed to refinance existing debt, accelerating the slowdown in the wider economy. new-normal.com/china/china-... - ThreadSky | a Reddit-style client for Bluesky

paulhodges1.bsky.social • 47 days ago

Deflation means the real value of debt increases. China's ageing and declining population therefore risks entering a debt trap. More and more money will be needed to refinance existing debt, accelerating the slowdown in the wider economy. https://new-normal.com/china/china-risks-entering-a-debt-trap-as-its-housing-bubble-continues-to-deflate/

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