Posted on 08/12/2015 9:08:11 AM PDT by BenLurkin
Growth in industrial production, fixed-asset investment and retail sales all slowed in July, China’s National Bureau of Statistics reported, just days after releasing data showing that exports fell sharply. Economists said the latest figures, along with a stated desire to make exchange rates more market driven, fueled Beijing’s surprise decision to let the yuan fall by 2.8% over Tuesday and Wednesday.
“All the numbers are very weak,” “China’s hitting a bit of an air pocket.”
...
“We believe new stimulus is being prepared to contain the rising downside risk in the real economy, which otherwise could turn into a hard landing worse than the one experienced in 2008,”...
At a quarterly meeting of the Communist Party’s Politburo in late July, China’s leaders stressed the importance of crisis prevention and risk management, according to an official summary. Economic growth remains the government’s top priority in light of “large downward pressures,” it said, citing the need for “heightened attention to combat them.”
Given the economic headwinds, plans to rein in local debt and push through other significant overhauls will likely take a back seat to expansion for the foreseeable future, economists said.
July’s slower industrial production and fixed-asset growth figures reflect sluggish domestic and global demand, extended producer price deflation and a wobbly property market. While housing sales between January and July rose 16.8% year-over-year, compared with a 12.9% gain in the first half of 2015, commercial and residential building starts fell 16.8% in the first seven months, compared with a 15.8% decline in the first half, the statistics bureau said Wednesday.
“The pressure on the old, highly indebted industrial sector has reached the breaking point for many, especially with tremendous price pressure on sectors like steel and textiles,” said Kenneth Courtis, chairman of Starfort Holdings, investment, private equity and commodity group.
(Excerpt) Read more at wsj.com ...
Andy Hoffman-Something Gigantic & Horrible Happening This Year
https://www.youtube.com/watch?v=sTvczO4Bo60
You all should watch this.
Oh my!
“China’s hitting a bit of an air pocket.”
What happens when a massive bubble hits an air pocket?
Fasten your seatbelts!
With the way China is going, what time scales are we looking at here? I think we can all agree the U.S. is going to be hit economically, but realistically, will it be a very slow event or a speedy event?
I have no idea. Blam might know.
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