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IPFS News Link • China

Beijing Crashes The Party: Chinese Media Warns Austerity Is Coming After FinMin Says...

•, by Tyler Durden

One of the top reasons why stocks have continued to hit new all time highs despite the ongoing economic shock that has crippled China's economy, which according to Goldman will push its GDP to zero (or lower)...

... and frayed global supply chains, is the investing public's absolute certainty that China will unleash an unprecedented fiscal stimulus to offset the collapse in economic output (which to those who mistakenly claim that this is "contrarian view" we urge you to carefully review the definition of contrarian when everyone is convinced it will happen).

And in all honesty, until today there was little reason to believe otherwise. After all, with China's economy disintegrating, as we showed on Friday, courtesy of real-time indicators that show there has been zero economic uptick since the lunar new year as the economy remains paralyzed, it would appear Beijing has little choice but to unleash the proverbial stimulus flood, or rather continue unleashing stimulus, as shown in the timeline below.