The world is going to economic hell, a trans-national globalist hell, in a Made-in-China handbasket that anyone without the usual blinders on saw coming years ago as China successfully reproduced the Japanese export model...without any adjustments for the now plain-to-see after-party no-growth scenario getting played out in Japan....
China Trade And The Inevitability Of Systemic Reset
China has built out its infrastructure, one of the few areas where the US, Brazil, Australia and others could get in on China's growth as a market, furnishing raw materials.
That supplied us with a modicum of cash that did not offset, but took some of the sting out of our enormous trade deficit with China. Now that the infrastructure build-out has slowed down, the world price for iron ore, copper and other raw materials is down. Our deficit grows and our economy slows...
China's exports are down in turn as we import less. The US economy cannot seem to recover...GDP growth on the point of recession...even in the face of extremely low interest rates and OPEC's suicidally low oil price.
This means that the US economy and the world economy are both structurally unsound....too much production in China with artificially low prices from a fixed-currency regime whose government has subsidized all manner of industrial production for export...while the US lives on credit, "monetizing" its debt...
The problem is now so bad that the Obama regime has taken the unusual step to slap a 500% tariff on Chinese steel...a story not covered widely by the financial press.
China Furious afterUS Launches Trade War Nuke: 522% Duty Slapped on Steel Imports
