Zugzwang: Chinese Policy Makers Playing Chess With Few Good Moves Available

In chess the strategic thesis of “zugzwang” highlights the point in the match where any change in the status quo weakens a player’s position. A Barclays report wasn’t considering the big bank’s fate relative to the U.S. elections in this report, but was rather focusing on China. In drawing such conclusions on China’s lack of good options, the report seems to confront differing analysis from UBS, which notices subtle changes in how money is being lent in the region as a simulative measure to grow the economy through new business creation. This Chinese concept is taking a different approach to direct economic stimulus than the engineering of financial assets that developed central banks so favor.