Canaries In The Coalmine: China, Asia, Not Participating In Euro Bailout Lovefest
Is China a canary in the coalmine of an impending global slowdown, or is China simply overloved as a beacon of growth as it was in 2008? I think it's both.
China's property and infrastructure bubbles are massive; that is for certain. Moreover, China's biggest export trading partner is Europe, just as Europe is headed for numerous austerity programs.
While it's doubtful the European austerity programs bring deficits down to where they are supposed to be, those programs will for a while cause a decline in European spending along with much social unrest.
Can China take a double whammy like this without overheating? I think not. And China will have to show things down, whether it wants to or not.
China's property and infrastructure bubbles are massive; that is for certain. Moreover, China's biggest export trading partner is Europe, just as Europe is headed for numerous austerity programs.
While it's doubtful the European austerity programs bring deficits down to where they are supposed to be, those programs will for a while cause a decline in European spending along with much social unrest.
Can China take a double whammy like this without overheating? I think not. And China will have to show things down, whether it wants to or not.
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