China’s coming crash?

[barryqwalsh]

A faltering China could tip the world back into recession. Because China is a huge customer for raw materials (grains, metals, fuels), their prices would remain depressed. China’s surplus capacity of basic industrial goods, such as steel, would be increasingly exported, also depressing prices. This would dampen any recovery in global business investment. Confidence would suffer.

What about political fallout? “The Chinese government has maintained its legitimacy by promising economic progress,” sayseconomist Eswar Prasad of Cornell University. If the promise seems broken, it’s hard to know how China’s masses would react. Or China’s leaders. Would they become more nationalistic and aggressive to deflect attention from economic disappointment?

China s coming crash - The Washington Post

 

[Jomama]

Man, I've run out of breathe waiting for China's collapse and the world has as well. If it were imminent beyond a stupid web forum you'd see it in the bond markets - but you dont.

But, if you really are smarter than the rest of the world, put your money where your mouth is and tell us how you're hedging the global economic collapse?

 

[EdwardBaiamonte]

Man, I've run out of breathe waiting for China's collapse and the world has as well. If it were imminent beyond a stupid web forum you'd see it in the bond markets - but you dont.

But, if you really are smarter than the rest of the world, put your money where your mouth is and tell us how you're hedging the global economic collapse?

China seems to show that huge govt involvement in and distortion of the economy does not necessarily result in depression or recession when you have decent monetary policy. This is a little disappointing to conservatives who probably would counter that GDP in China would have remained in the 10-15% range had it not been for all the liberal interference.