{"id":401505,"date":"2019-10-16T07:30:30","date_gmt":"2019-10-16T07:30:30","guid":{"rendered":"https:\/\/ktsl888.com\/?p=401505"},"modified":"2019-10-16T07:22:05","modified_gmt":"2019-10-16T07:22:05","slug":"china-injects-billions-as-economy-slows-will-investors-turn-to-bitcoin","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/china-injects-billions-as-economy-slows-will-investors-turn-to-bitcoin\/","title":{"rendered":"China Injects Billions as Economy Slows, Will Investors Turn to Bitcoin?"},"content":{"rendered":"
America is not the only country manipulating its money in order to prop up a flagging economy. Today China unexpectedly injected billions in cash to prevent a fall in interest rates as the economy flounders following months of trading tensions. Savvy investors turned to Bitcoin before, will they do it again?<\/p>\n
According to Bloomberg<\/a> the People\u2019s Bank of China injected 200 billion yuan (around $US28 billion) into the financial system today. The move caught markets off guard and the flood of money flowed through the medium-term lending facility which is essentially loans for banks.<\/p>\n The premature cash injection comes amid a prolonged trade dispute with the US and a slowing domestic economy. The report added that data released this week showed China\u2019s factory deflation deepening and a fall in imports and exports last month.<\/p>\n China\u2019s third quarter GDP figures are due for release on Friday and they are expected to show the lowest growth since 1992.<\/p>\n The PBoC has been forced to take action to ease monetary policy by injecting more liquidity into the financial system. More than 400 billion yuan of the medium-term lending facility will come next month providing a window for the central bank to lower interest rates.<\/p>\n Other reports<\/a> indicate that the US and China are intent on \u2018decoupling\u2019 as high level talks between the two leaders continue to wrangle over trade agreements. This would be bad news economically<\/a> for both nations and the rest of the world.<\/p>\n Chief economics commentator for Forbes Asia, Yuwa Hedrick-Wong, stated;<\/p>\n \u201cThe US-China trade war, for me, is simply a manifestation of a much deeper transition in the global economy, and I believe China is preparing its economy to eventually decouple from the US over time.\u201d<\/p><\/blockquote>\n What is clear is that both economies are suffering as a result of the trade spat and the global financial system is slowing down, almost ten years after the last crisis.<\/p>\n Yes and no. Bitcoin has yet to establish itself as an alternative borderless currency so it is still only really a store of value at the moment. Central banks flooding financial markets with billions also serves to devalue their own currencies, so the store of value narrative for BTC may strengthen.<\/p>\nDoes Bitcoin Solve This?<\/h2>\n