imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

Differing Views on China

by Stephen Lendman Thursday, Aug. 27, 2015 at 1:23 PM
lendmanstephen@sbcglobal.net

China

Differing Views on China

by Stephen Lendman

Ignore demagogues like Donald Trump claiming “China is taking our jobs…taking our money…They’ll take us down.”

Gerald Celente issued a “trend alert” headlined “Market Mayhem: Don’t blame China - It’s the (global) economy, stupid.”

China is far from blame-free. Celente calls its economy “the canary in the collapsing global-equity mine.” He forecasts markets plummeting by yearend. Chickens are coming home to roost.

Current market turbulence is “more than a…correction,” he stresses. “It’s a global recession” - how severe remains to be seen.

The influential right-wing Peterson Institute for International Economics (PIIE) supports anti-populist policies across-the-board - including deregulation, money printing madness, anti-consumer trade deals, near-zero interest rates, and gutting vital social justice programs.

Nicholas Lardy is a senior PIIE fellow. The New York Times featured his op-ed headlined “False Alarm on a Crisis in China,” saying:

“There is little evidence that China’s economy is slowing significantly from the 7 percent pace reported by the government for the first part of the year.”

Other market analysts estimate it at 4% or less. It’s reported economic numbers are inflated. Still, it’s growing much faster than stagnating US and EU economies.

Official July figures showed slowing industrial production and fixed asset investment, as well as sharply declining exports. Expect Shanghai Composite plummeting valuations to have a negative effect on consumer spending, weighing on private sector investment and economic growth.

Its equity market bubble may experience lots more deflating ahead - affecting other financial markets globally. Plummeting commodity prices reflect slowing growth.

China is the world’s second largest economy - the largest based on purchasing power parity. It’s an engine of global growth. Its economy and financial markets matter.

Whether they’ll experience crisis conditions remains to be seen. Given the fragility of global economies after years of excess, China may face economic and financial trouble for the first time in decades.

The Shanghai Composite remains in bubble territory after around a 40% selloff - followed Thursday by what appears to be a dead-cat bounce. In the 12-month period ending June 2015, equity valuations soared over 150%. Retrenching so far may not be enough to reverse imbalances.

Lardy claims market weakness doesn’t reflect “a sell-off in the fundamentals of the Chinese economy.” He believes it “may strengthen those fundamentals…”

Investor/author of “The Next Economic Disaster,” Richard Vague headlined a spring 2015 article “The Coming China Crisis,” calling “the great panic of China…in full swing.”

Its economy “fueled by runaway lending…produced far more housing, steel, iron, and a host of other goods than it knows what to do with, amassing unprecedented levels of overcapacity and, by my estimate, making a staggering - trillion in problem loans in the process” Vague explained.

The main post-2008 crash engine of growth “is rapidly diminishing and will soon largely end. The only question is how.” Its bad debt problem is “unprecedented.”

America’s economy was hammered by a similar problem from fall 2007 to March 2009. Forecasts didn’t predict what lay ahead - or maybe a worse storm brewing now.

Vague says China’s current problem bears eerie resemblance to America’s 2008 private debt crisis and Japan’s in 1991 - after the Nikkei stock market index peaked on 1989’s last trading day.

China’s ratio of private debt to GDP exceeds 200%. It’s total debt ratio tops 280%. It “amassed the largest buildup of bad debt (and overcapacity) in history,” said Vague.

“Overcapacity is so significant in many sectors that it will take years for it to be absorbed by organic demand.” Millions of homes remain vacant. Housing represents about 20% of China’s economy. Its private sector is “massively over-leveraged.”

Its growth has been declining for years - “perhaps to a level approaching zero - and China will be left facing a ‘lost’ generation of very low growth similar to the last 20 years in Japan.”

Whether financial and economic contagion follows (and how severe) remains to be seen. Current global conditions may signal a major inflection point indicating significant trouble yet to unfold.

Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net.

His new book as editor and contributor is titled "Flashpoint in Ukraine: US Drive for Hegemony Risks WW III."

http://www.claritypress.com/LendmanIII.html

Visit his blog site at sjlendman.blogspot.com.

Listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network.

It airs three times weekly: live on Sundays at 1PM Central time plus two prerecorded archived programs.

Report this post as:

Local News

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

Watch the Debate: Excluded Candidates for Governor of California M31 5:20AM

Change Links June 2018 posted M28 7:41AM

The Montrose Peace Vigil at 12 Years M22 8:01PM

Unity Archive Project M21 9:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 10:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 9:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 8:57PM

California police agencies violate Brown Act (open meetings) M02 8:31PM

Insane Company Wants To Send Nuke Plant Waste To New Mexico A29 11:47PM

Change Links May 2018 A27 8:40AM

Worker-Owned Car Wash on Vermont Closed A27 5:37AM

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A13 12:39AM

lausd whistle blower A11 6:58AM

Website Upgrade A10 10:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 8:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 6:58PM

Change Links April 2018 A01 6:27PM

More Local News...

Other/Breaking News

Antrhopocène, le grand effondrement S19 9:53AM

Creative Destruction Hack Diamonds Windows/iOS/Android - Creative Destruction Generator S19 12:51AM

Abolir l'économie S18 11:18AM

The Dictatorship of Corporations S17 5:26PM

18 Lethal Consequences Of Hunting S17 3:13PM

Paraphysique de l'outplacement déontologue S15 6:51AM

Creative Destruction Hack Mod Generator S15 3:49AM

Shopping du bashing S14 8:42AM

After Lehman Brothers, Experts Say Global Financial Crisis Can Happen Again S13 8:28PM

“Animaniacs in Concert!” Starring Voice Legend Rob Paulsen S12 9:30PM

Probabilités de fin d'humanité S12 6:49AM

Florida Area of Migrant Farmworkers Denied Right to Construct Health Clinic near NaplesCIW S11 2:57AM

Propagande de virus, virus de propagande S10 7:34AM

Steer clear of work morality! S09 12:10PM

Sweatshop Lodge Ceremony Continues in US Fed Prisons Led by Inmates S08 6:17PM

Paraphysique de l'origami S08 7:11AM

The Shortwave Report 09/07/18 Listen Globally! S06 11:23PM

August 2018 Honduras Coup update S06 12:28PM

Du réussissement putréfié S06 10:55AM

Brett Kavanaugh Filled The 5th Circuit With Execution Judges S06 6:14AM

Log S06 4:25AM

Augusta Georgia Woman Gets 5 Year Prison Sentence for Writing About Russians Crime Acts S05 8:29AM

Paraphysique de contextualité S05 8:29AM

Crisis Regulation in Global Capitalism S03 3:39PM

Ex-voto de réification S03 10:24AM

Please Oppose Warmonger, Execution and Torture Supporting Bush Operative Brett Kavanaugh A31 10:45PM

Paraphysique d'exploitation occultation A31 10:24PM

Ryan Zinke Is Charging Taxpayers For A Trophy Hunters' Council A31 2:10PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy