People's Bank of China announced a 1-percentage-point reduction in the Chinese central bank’s required reserve ratio effective October 15th. This is the third reserve ratio reduction in 2018 following the 100 and then a basis-point cuts announced in April and June. A basis point equals 1/100th of 1%, thus 100 BP = 1%.
The amount of cash that most banks must hold in reserve is now less than earlier this year. This is being done to reduce finacing costs and supr growth. Why? The economic drag from the esclating trade dispute with the United States is having significant effects on China. As Trump would say: Winning.
China will reportedly invest billions into infrastructure projects as the economy cools further. Spying and general hijinks by the Chinese industrialists, government officials and puppets, and bankers is slowing being reported by corrupted U.S. media outlets. We use the word "corrupted" because of the well documented "advertising dollar" pressure placed by foreign lobbyists (sales) for approved spin doctoring. (1)
The impact of reduced exports is real and showing the clout that he U.S. continues to have; however, that clout will not last for more than another decade at best.
The boom and potential bust of 55+ retirement communities, beginning around 2023 and 2033. The prospects for the next 15 years may be significantly different from the next 15 years.
(1) "We will bury you." Soviet premier Nikita Khrushchev while addressing Western ambassadors at a reception at the Polish embassy in Moscow on November 18, 1956. Commonly referred to as "we will defeat you from within."