Ambrose Evans-Pritchard, The Telegraph: Bank of America warns of 'lethal' damage to China's financial system as deflation deepens
'Deflation, Devaluation, and Default' loom in China this year. The denouement for Shanghai's bourse will not be pretty, says the US bank.
WNU Editor: Ambrose Evans-Pritchard has been predicting tough times for China in the past few years .... but it looks like for this year he may be right. I have not been back to China for the past two years .... but my Chinese friends who live there are all telling me the same thing .... the boom years are coming to an end. The smart money has bailed out of the Chinese markets, and employment prospects with better wages are coming to an end. Does this mean the end of China's economic boom .... probably not .... but it is not going to be the double digit growth that they have gotten use to for the past decade. And as for having access to easy credit .... that is definitely coming to an end .... albeit reluctantly.
1 comment:
Chinese exports were up 9.7% this year.
While the " boom" may be over, the Chinese economy is still doing better than most of of the rest.
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