China's coming crash?

GySgt Wayne A. Ekblad — Mon, 25 May 2015 18:23:02 -0400

It’s time to worry about China.

On any list of calamities threatening the world economy, a China crash ranks at or near the top. Just what would constitute a “crash” is murky. Already, China’s sizzling rate of economic growth has declined from 10 percent annually — the average from the late 1970s until 2011 — to 7 percent, which is still high by historical standards. The question is whether the deceleration continues and growth goes much lower.

A faltering China could tip the world back into recession. Because China is a huge customer for raw materials (grains, metals, fuels), their prices would remain depressed. China’s surplus capacity of basic industrial goods, such as steel, would be increasingly exported, also depressing prices. This would dampen any recovery in global business investment. Confidence would suffer.

http://www.washingtonpost.com/opinions/chinas-coming-crash/2015/05/24/fd83ec7e-0095-11e5-833c-a2de05b6b2a4_story.html

China’s coming crash?

A faltering China could tip the world back into recession.