Dee Feat is in Dee Flation, Part 20

This week's episode of Dee Feat brings with it some specific numbers related to one of the constant themes here in KeynesLand: you don't gots enough buyers, you gots bad capital. As Eccles says, it all has to add up. In other words, in the short to medium term it really is a zero sum game.

Today's NY Times has reporting from China that Flation has taken a Dee Tour. Irritatingly, not only is the story not on the front page, nor the front of the business section, but below the fold inside (with the link, you'll not have to trundle through).

Here are a couple of juicy quotes.

The start of the piece:

Prices are tumbling across the Chinese economy, according to government data released on Monday, as a flood of goods pouring out of the country's factories and farms exceeds anemic demand from Chinese households and businesses.

Which leads to the deflation spiral, put this way:

...give consumers an incentive to delay purchases until prices fall further.

Given that China can't clear output with both a massive export effort and domestic demand, what's capital worth, really? The Christian Right Wingnuts compound their stupidity by calling for population growth as the cure all!!! And the Earth is only 6,000 years old. And isn't chock full of more than 7 billion units.