China has officially entered a liquidity deflation trap—similar to Japan’s recession in the 1990s. Unlike the Soviet Union, it’s a slow, blunt knife cutting flesh. You’ll notice consumer goods getting cheaper, but assets keep losing value—especially real estate. Deposit rates are close to 1%, while loan rates remain high. The gap between the two—this “scissor difference”—is meant to maintain currency stability and international standing. Someone has to come in to settle the accounts. Who? The middle class. Exploiting the poor is not conducive to stable rule; the rich are “our people.” So the only ones left to exploit are those who previously bought homes using loans… In 2021, I called to persuade my friends to sell their houses. I’ve also sold my apartment in Paris. Unfortunately, most people wouldn’t. Economic logic has already changed.
With the AI era coming, school-district homes are also a scam $BTC