DON’T WORRY, IT’S PROBABLY NOTHING: China Enters the Economic Doom-Loop.

Beyond the money dump, China’s slashing interest rates across the board — which governments do to try and gin up some tissue-fire growth.

They’re slashing downpayment requirements on housies, opening a special credit facility so banks and hedge funds can gamble on stocks, and cutting the reserve requirements for banks — meaning banks can raid their vaults and go on a lending spree.

Put it together, and Beijing’s doing everything it can to get money out in the wild, down to bankrolling gamblers and pouring yet more trillions down the black hole of China’s comically over-built housing market.

You may have seen the ghost towns China’s built, here comes round two.

What Scares China

Why so desperate, you might ask?

Easy: China is panicked not only about a looming recession, but that it might be falling into the Japan-style doom-loop of structural stagnation thanks to President Xi’s anti-business jihad.

The key number here is the interest rate on 30-year government bonds, which is a classic indicator of a zombie economy in the spawning.

Ominously, China’s 30-year just fell blow Japan’s. Flirting with zombie territory.

Earlier:

● Evergrande crashes as China dumps ‘build, build, build’ playbook.

● Can China contain Evergrande’s collapse?

● China May Be Headed for a Lost Decade*.

● Flashback to November of 2019: How to Conduct Business with Chinese Companies That See a Dark Future.

* Given the previous four years of Bidenomics, we might be as well, depending upon what happens in November.