This is

CBSI and the world with Gordon Chang at Gordon G Chang.

I'm John Bachelor China.

Headline C and B.

The People's Republic of China is quote on the verge of

deflation and plunging pork prices aren't helping. At the same time Reuters is

reporting China November bank loans rise less than expected, more easing expected.

Two headlines that can be connected very easily by our colleague and friend Fraser Howie, co-author of Red Capitalism,

the Fragile Financial Foundation of China's Extraordinary Rise.

A very good evening to you, Fraser.

Thank you. No bank loans or easing coming and pork prices. Now, what does that tell us about China's prospects? Good evening to you.

Good evening, John.

What it tells you is in how they're joined is that this is an economy.

They're reflective of an economy that is extremely weak.

Economy of which where there's very little optimism, business people are not, even if money's available, they're not prepared to borrow because they're pessimistic about the future, they don't see opportunity.

You have consumers who won't spend because they believe prices are going to be coming down in the opportunity. You have consumers who won't spend because the belief prices are going to be

coming down in the future. So this is an economy with real real problems, a post-Covid bounce.

If we ever really saw it, it certainly has not materialized in any

meaningful way. It's not following through. And frankly, the government's

out of ideas as to how to turn things around.

Gordon, you have a question for Fraser.

My guess, and this is just a guess, is that China's technocratic officials have a reasonably

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