Welcome back to The Breakdown with me, NLW.

It's a daily podcast on Macro, Bitcoin, and the Big Picture Power Shifts remaking our world.

What's going on, guys? It is Thursday, September 26th, and today we are talking macro.

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ly slash breakdown pod. All right, friends, well, we are taking a departure away from the cryptosphere, away from

the SEC today, because there are some really interesting things going on in the world of macro.

And I think right at the top of that list is what's coming out of China.

Beijing has unleashed massive stimulus in a bid to revive the struggling Chinese economy.

On Tuesday, the People's Bank of

China held a rare press conference to announce a raft of policy measures. Specifically, the central

bank has reduced reserve requirements for banks by half a percentage point. This move is

anticipated to release around $142 billion, which policymakers hope will boost lending. The seven-day

policy rate and mortgage rates were also reduced.

Finally, a few days later, the PBOC cut the rate on their medium-term lending facility from 2.3% to 2%, which is the largest cut since the policy tool was created back in 2016.

The central bank also guided that further rate cuts are expected. And what's more, alongside

rate cuts, the PBOC announced a $71 billion fund to provide

emergency liquidity to the stock market and a host of minor tweaks designed to support the real

estate market.

So what is the context for all of this?

Well, the slowdown in China has been evident for years, but it appears to have hit a crisis

...