China and the USA Have the Same Core Economic Policy

Both China and the USA (along with most of the developed world) operate a bank-run economy that relies on perpetual debt creation to lift asset prices.

ZH: The Fed Guarantees No Recession For 10 Years, Permanent Uptrend For Stocks & Housing

Those who own stocks and housing now will continue getting richer, those who don't will be priced out of these markets.

A classified Federal Reserve memo sheds new light on the Fed's confidence in its control of the economy and the stock and housing markets. In effect, the Fed is guaranteeing that there will be no recession for another 10 years, and that stocks and housing will remain in a permanent uptrend.

Paraphrasing the memo, we have the tools to insure that stocks and housing do not just remain at a permanently high plateau but continue to move higher in a permanent uptrend.

...There is one fly in the ointment the memo mentions: the Fed is powerless to push wages and earned income higher along with stocks and housing. So while stocks and housing soar to the moon, wages will continue stagnating or losing ground as rising prices for healthcare, rent, childcare, college tuition, etc., continue chipping away at the purchasing power of earned income.

Those who own stocks and housing now will continue getting richer, those who don't will be priced out of these markets. In other words, the Fed's policy of making the rich richer and the Devil take the hindmost is permanent...

The average Chinese laborer is in the same position as the American laborer, worried about being forever priced out of the housing market. To varying degrees they also both worry about being priced out of "good neighborhoods," college education, medical care, etc. Wage growth is higher in China, but consumer goods cost more and inflation is higher.

Obviously the two countries have different cultures and political systems, but at the most fundamental level, they're operating the same economic policy. It is creating similar distortions and similar threats. China will not allow home prices to fall, otherwise the economy sinks into recession and local governments cannot repay debts, and this causes a further decline in economic activity. The U.S. will not allow stock prices to fall, otherwise the economy sinks into recession and local governments cannot pay pensions, and this causes a further decline in economic activity.