China's leaders refuse to blink as economy slows drastically

Telegraph (UK) ^ | 15 September 2014 | Ambrose Evans-Pritchard

[Lorianne]

Premier Li Keqiang is determined to drive through deep reforms and wean the economy off exorbitant levels of debt before the damage becomes irreversible ___ China’s leaders have brushed aside warnings of an incipient credit crunch in the Chinese economy, determined to purge excesses from the financial system despite falling house prices and the deepest industrial slowdown since the Lehman crisis.

Industrial production dropped 0.4pc in August from a month earlier, a rare event that highlights how quickly China is coming off the boil. The growth of fixed asset investment fell to record lows.

“It is a shockingly sharp deceleration,” said Wei Yao, from Societe Generale. “What is surprising is the calm response from Beijing. The new leadership’s tolerance for short-term pain seems to have jumped by another big notch.”

Electricity output has dropped 2.2pc over the past year as the authorities continue to force dinosaur industries into closure, chipping away at excess capacity.

[Viennacon]

They’re betting we and the Europeans collapse first...

Who knows, perhaps the Islamic State will eventually end up with a higher credit rating than us.

[Chgogal]

FYI

[Celtic Conservative]

If europe and us go first, who’s gonna buy all that plastic crap they make?

CC

[wetgundog]

Financial chaos breeds revolution, here’s hoping Communist Party heads roll down the streets of Bejing.

[clearcarbon]

"Premier Li Keqiang is determined to drive through deep reforms and wean the economy off exorbitant levels of debt before the damage becomes irreversible."

Here it's called obamanomics and it's blamed on GWB.

I wonder what they call it in China and who do they execute?

[expat2]

Quite likely.
An old Chicago Mob trick (a 'bust-out') is to take over a company (say, a bar) with good credit and use that credit to buy loads of (say) booze for the mob and keep looting the bar until its credit is no longer any good. Then they leave, with the company owing huge sums of money and no credit.
What is happening now to the US is the world's biggest and most ambitious bust-out ever.

[RoadGumby]

That ‘axiom’ would apply here in the US also.

[Cringing Negativism Network]

I agree.

China isn’t slowing down, insofar as it is still growing like mad.

Mostly because America is buying billions and billions in imports from China.