Stock Market Crash Alert: China’s Deflation Problem Can Break the U.S.

The Chinese economy, a global powerhouse for the past few decades, is facing a daunting challenge. The nation’s consumer price index is clearly indicating deflation has arrived with a -0.5% growth rate over the previous year. That is the largest dip since the financial crises induced by the tech bubble, the global financial meltdown, and the Covid-19 pandemic. This marks the fastest pace of price declines in three years. On the flip side, core inflation in China has managed to remain in positive territory. Food and energy prices are dropping at a more rapid pace compared to the core basket of goods. This divergent trend is an…