Is It Really That Bad? The Truth Behind China’s QE Talk

The signs are increasing China will soon engage in its own form of quantitative easing, in what could be seen as a sign of panic.
Is It Really That Bad? The Truth Behind China’s QE Talk
A staff member counts money at a Chinese bank, on April 18, 2011. ChinaFotoPress/Getty Images
Valentin Schmid
Updated:

By the middle of 2015, it has become clear that all is not well in the land of China. The signs are now increasing that China will soon engage in its own form of quantitative easing, in what could be seen as a sign of panic.  

To illustrate how dire the situation is: The United States used quantitative easing after the country was hit by the worst crisis since the Great Depression. Europe started its form of easing at a point when the common euro currency was about to collapse. Japan has tried—and failed—QE intermittently to get itself out of a 20-year stagnation.  

"Money attracts money and nothing attracts money like a rising stock market."
Fraser Howie, author
Valentin Schmid
Valentin Schmid
Author
Valentin Schmid is a former business editor for the Epoch Times. His areas of expertise include global macroeconomic trends and financial markets, China, and Bitcoin. Before joining the paper in 2012, he worked as a portfolio manager for BNP Paribas in Amsterdam, London, Paris, and Hong Kong.
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