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Personally, I think it is in a stagflation state.

That is, economic stagnation, rising unemployment rate and rising prices.

Generally speaking, when there is hyperinflation, prices rise and the economy is in hyperinflation. At this time, the unemployment rate usually does not increase.

Deflation is the opposite, prices fall, the economy declines and the unemployment rate rises.

Personally, I feel that China's economy is stagflation, the speed of economic development is declining, the price level is rising and the unemployment rate is also rising. It looks very similar in all directions. . . Worried. . .

The China administration has been controlling China's excessively high economic growth rate and worried about inflation, which is indeed a trend. It believes that the subprime mortgage crisis in the United States will not have too high an impact on the economies of Asia or China, and there are no preventive measures.

Simply put, the subprime crisis is that you bought a suite with a loan, and it is very difficult for you to pay back the money. Then, in order to lend more, the bank allows you to use the house you bought with the loan (the loan has not been repaid) as collateral and then buy a suite or a car. As a result, I can't pay back so much money at all.

Because many banks and many people have done this, no one feels wrong, too many people can't pay back the money, the non-performing loan ratio is too high, and banks fail at a loss. . .