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Archive for April, 2014

Conflicting Views On China’s Slowing Economic Growth

April 16th, 2014 Comments off

Amid growing indications that China’s rapidly expanding public and private debt foreshadows a major economic and financial upheaval in the future, the latest official GDP quarterly data is stimulating divergent views from analysts. According to Beijing, GDP grew by a “better than expected”  7.4 percent in Q1 of 2014. However, this is a further indicator that official growth in China is slowing, as Q4 of 2013 revealed GDP growth of 7.7 percent.

Two things to keep in mind; China’s statistics, as in many other economies, are opaque, perhaps much more so with Beijing. Additionally, the Chinese economy functions with far different dynamics than is the case with a Western advanced economy. Official GDP growth reflects massive infrastructure spending funded by credit expansion, alongside export-based manufacturing growth, with consumer spending a low component of economic activity in comparison with Western countries.

What does seem clear is that the economy’s double digit growth rates of the past are over, the trend in GDP growth is a slowdown, supposedly engineered by Beijing to lay the foundation for more sustainable growth in the future. However, declining GDP growth  rates combined with increasing signs of a looming debt crisis add further doubts about the future health of the world’s second largest economy

 

If Hillary Clinton runs for President of the United States  in 2016, see the video about the book that warned back in 2008 what a second Clinton presidency would mean for the USA:

 

CLICK ON IMAGE TO VIEW VIDEO

Hillary Clinton Nude

Hillary Clinton Nude

 

Rising Concern On China Debt

April 9th, 2014 Comments off

There is increasing concern at the rise in public and private debt in China relative to GDP. This concern is across the board: internal and external, public policymakers and private financial interests and investors. Some commentators are following the path of false optimism; no matter the size of China’s debt, the second largest economy in the world has the capacity to contain the problem-so they claim. That remains to be seen.

By some estimates,  Chinese financial institutions are holding up to $3 trillion is bad or at least questionable debt, equivalent to America’s subprime mortgages that exploded in 2008, ushering in the global economic crisis. If Beijing is unable to contain the growing debt problem and it were to explode, the contagion would be at least as virulent as the impact on the global economy due to the subprime meltdown in the United States.

Of all the somber economic trends underway-and there are many-China’s accumulating public and private debt problems are the most vexatious.

 

If Hillary Clinton runs for President of the United States  in 2016, see the video about the book that warned back in 2008 what a second Clinton presidency would mean for the USA:

 

CLICK ON IMAGE TO VIEW VIDEO

Hillary Clinton Nude

Hillary Clinton Nude