China keeps interest rates low partly by letting home prices fall, while the US props up housing and stocks and pays for it with inflation — bad news for anyone holding dollars.

• Xi Jinping's line that houses are for living in, not speculation, became policy in 2020 when China capped how much developers could borrow.
• Home prices in China dropped sharply and the government let it happen instead of stepping in.
• The US does the opposite: after 2008 and again in 2020, the Fed bought over a trillion dollars of mortgage bonds to hold the market up.
• Even with mortgage rates above 7%, US home prices are still higher than a year ago because the system is not allowed to fail.
• When something has to break, the US protects investors and lets the dollar weaken — printed money flows into houses and stocks, which is why prices keep climbing.

Outlook: Expect the US to keep defending asset prices, which means more inflation pressure rather than a real housing reset.