China's government under Xi Jinping models itself on the Bundesbank of 1970s-1980s Germany: deliberately prioritizing currency stability and bond market strength over equity market performance and growth, using policy sacrifice of stock market returns to build confidence in RMB as a store of value for foreign central banks and governments.
causalpending
Speaker
Louis VangermeerschEvidence Quote
“for the past 10 years and this is of course what Germany did in the 1970s in Europe... China to favor the bonds hold the currency steady at the expense of everything else just like the bundes bank did in the 1970s and 1980s [19:59]”
Source
From Wedlock to Deadlock: The East-West Divorce - with Brent Johnson and Louis Gave— In Gold We Trust [EN]Created: 8/12/2026, 6:04:21 PM
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