A Citibank memo has reportedly identified China as a safe haven during the ongoing bank crisis in the West.
RT:
The unfolding banking crisis in the US and Europe, which has shattered investor confidence in the Western financial system, could highlight China as a “relative safe haven,” economists at Citi said in a note seen by CNBC.
The Chinese economy could see accelerated expansion this year, giving the country a “hedge” for growth while economies in the US and Europe face heightened risk of financial disruption, according to the note.
“We have long been discussing our view that China can be a major growth hedge this year – if anything, recent global banking stresses perhaps have strengthened this thesis,” a team led by Citi’s Chief China economist Xiangrong Yu reportedly stated.
“China could at least be a relative ‘safe haven’ given its growth premium, financial soundness, policy discipline and the new political economy cycle,” the economists argued.
They pointed to the recent decision by the People’s Bank of China (PBoC) to cut its reserve requirement ratio (RRR), saying the move showed “reassurance of policy support amid global volatilities.”
China being a safe haven during this crisis is just an obvious fact.
The West has done everything in their power possible to destroy their own economies. They imposed lunatic lockdowns during the COVID-19 hoax and then engaged in this idiotic war against Russia.
After creating gazillions of dollars on computers in response to these self-inflicted problems, they started increasing interest rates to claim that they were somehow fighting inflation. This has sparked bank collapses and is crashing the value of real estate all while inflation remains out of control. They are continuing to create gazillions of dollars while not raising interest rates to levels sufficient enough to counter inflation. It is literally the worst of both worlds.
Even though China did do some lockdowns, they never fully closed their economy down like what happened in the West. Despite claims to the contrary, their economy is not collapsing and is in very good shape compared to what we see in the West. They have become the manufacturing center of the world and they are rapidly expanding their economic influence.
It’s definitely not a good sign for the West when a large Western bank like Citibank is talking about putting assets in China. This is yet another warning sign of things to come.
