China’s imports shrink in sign slump worsening; president warns growth could slow further

AP via Washington Post ^ | September 10, 2012 | Associated Press

[John W]

BEIJING — China’s imports shrank unexpectedly in August in a sign its economic slump is worsening and the Chinese president warned growth could slow further, prompting expectations of possible new stimulus spending.

Imports declined 2.6 percent from a year earlier, below analysts’ expectations of growth in low single digits, data showed Monday. That came on top of August’s decline in factory output to a three-year low and other signs growth is still decelerating despite repeated stimulus efforts.

[VaRepublican]

Again with unexpectedly, I thought analysts have been saying this was going to happen to China.

[BfloGuy]

China has been inflating the Yuan for years to keep its value down relative to the dollar. It should have learned a lesson from the United States:

Inflation causes trade surpluses to turn into trade deficits

It's an economic law that's been forgotten by the Keynesians who think that money doesn't matter. Turns out, it does!

[voicereason]

Issues with the Chinese economy were easily identifiable five years ago when I started spending time there for work. At some point China is going to be further evidence that communism does not work.

[voicereason]

Issues with the Chinese economy were easily identifiable five years ago when I started spending time there for work. At some point China is going to be further evidence that communism does not work.

[voicereason]

Issues with the Chinese economy were easily identifiable five years ago when I started spending time there for work. At some point China is going to be further evidence that communism does not work.

[John W]

Yes, we’ve had some struggles with it here ourselves the last three and a half years.

[PGR88]

China is a new Japan. Its state-directed socialist-crony capitalism has run its course. There are no new white-elephant trophy projects left that will spur a new boom. New debt provides little growth in the economy.

Its also facing very tough demographic headwinds now. Their labor force will actually start shrinking in a few years.