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Chinese Economy Already in ‘Hard Landing,’ according to JPMorgan

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posted on Mar, 14 2012 @ 10:58 PM
Chinese Economy Already in ‘Hard Landing,’ JPMorgan’s Mowat Says

This not only bodes badly for China, but the rest of the world as one of the few final bastions of global economic growth, which is anemic at best.

Chinese Premier Wen Jiabao has also just warned that China faces another
Cultural Revolution if it fails to embrace political change and economic reform. Seems China’s Premier is seeing the writing on the wall for his country and is raising the alarm over its imminent dire future. Wen’s got to know that an economic collapse in China will have adverse and even severe economic repercussions for the rest of the world beyond its borders, especially Australia who is heavily reliant upon the country’s continuing purchase of mineral resources.

So as the article suggests, China is now in an economic hard landing and without radical change and reforms will spiral into chaos as its economic growth plummets, its property bubble bursts, and increasing numbers of Chinese become unemployed and impoverished.

China’s economy is already in a so- called “hard landing,” according to Adrian Mowat, JPMorgan Chase & Co.’s chief Asian and emerging-market strategist.

“If you look at the Chinese data, you should stop debating about a hard landing,” Mowat, who is based in Hong Kong, said at a conference in Singapore yesterday. “China is in a hard landing. Car sales are down, cement production is down, steel production is down, construction stocks are down. It’s not a debate anymore, it’s a fact.” His team was a runner-up for best Asian equity strategists in a 2011 Institutional Investor magazine poll.

posted on Mar, 14 2012 @ 11:23 PM
The plot continues to thicken in China....

Chinese political scandal boils over: 'red revival' leader Bo sacked

Controversial Chongqing party chief Bo Xilai has been removed from his post, bringing China’s sensational political scandal to a head and leaving his once sky-high political ambitions hanging by a thread.

A short statement released by the state-run Xinhua news agency said Zhang Dejiang will take over as Chongqing party chief while serving concurrently as vice-premier. There were no further details, and the statement did not say if Mr Bo had been assigned another role, or if he was under investigation.

Advertisement: Story continues below Mr Bo, the charismatic figurehead of China’s broad “red” revival movement, has become the most senior victim of overt power struggle since Chen Liangyu six years ago. The former Shanghai party chief was toppled in 2006 and later sentenced to 18 years in jail for corruption.

Mr Bo’s removal comes a day after some fighting words by Premier Wen Jiabao in his closing news conference after the National People’s Congress, his final one after serving nine years as premier.

"I can tell everyone that the central government has attached great importance (to the Wang Lijun incident), and immediately instructed the relevant departments to carry out a special investigation,” Mr Wen said. “Currently, the investigation has made progress. We will handle this issue in strict accordance with the law on the basis of facts and using the law as a criterion."

Mr Wen also aimed a thinly-veiled swipe at Mr Bo and his so-called Chongqing model.

“The present Chongqing municipal Party committee and the municipal government must reflect seriously and learn from the Wang Lijun incident," he said.

"What has happened shows that any practice that we take must be based on the experience and lessons we've gained from history and it must serve the people's interests."

Hmmm otherwise being sacked my be the least of one's worries.

posted on Mar, 14 2012 @ 11:46 PM
Wow...Chinese economy tanking is a sobering thought indeed.
I wonder how much of our coal and iron ore they would buy just for domestic use if for argument's sake, they ceased exporting manufactured goods to the world tomorrow...
Nope, it wouldn't be enough to keep the Aussie economy ticking over.
Just think how many jobs this would cost us!

posted on Mar, 15 2012 @ 08:59 PM
They are buying like there is no tomorrow however.....
Land in South america, mines in afghanistan, oil sands in canada....copper mines and iron mines as well as other things....they are setting themselves up for the future and dumping a lot of their us treasury bonds or whatever......They have been on a resource buying spree for a while all over the world.....
Suppose they cannot keep up the growth they have been used to?
Does this mean theyll tank completely?
I dont think its possible for them to slow down too much because of people pressure......
Their guaranteed market of a billion +sould seems to me like they could get by selling to each other.....
As long as they can get the resources they need.......
I have heard of whole cities deserted over there because they had to keep building....well, maybe they will actually put their people in them and give them state mortgages for the apartments...the govt cant loose i dont think....
Where there may be waste is in the local goverments borrowing schemes...many have overdone their resource base.....huge stadiums etc....

posted on Mar, 20 2012 @ 07:17 PM
Dow Jones, S&P 500, Nasdaq and Londons FTSE 100 all post losses over-night due to concerns over China's slowing economic growth.

Bhp Billiton say sales are go the mining jobs.
Keep a close eye on this, coupled with the current Euro-crisis this could be getting close to the tipping point for the global economy.
Also rumours abound about tanks in Beijing this week...does it all tie in together?

posted on Mar, 20 2012 @ 10:26 PM

Originally posted by Silverkiss
Dow Jones, S&P 500, Nasdaq and Londons FTSE 100 all post losses over-night due to concerns over China's slowing economic growth.

Bhp Billiton say sales are go the mining jobs.
Keep a close eye on this, coupled with the current Euro-crisis this could be getting close to the tipping point for the global economy.
Also rumours abound about tanks in Beijing this week...does it all tie in together?

Yep the Australian economy is gonna get a spading as China's economy slows. Didn't know about tanks in Beijing but what is not too commonly known, is that GDP lower than 8 percent in China is cause for major social unrest. China has already flagged less than 8 percent growth looking forward.

posted on Mar, 20 2012 @ 10:35 PM
So China lends a boatload of money to the US. The US is probably the biggest supporter of China with all the crap we buy. US economy sinks, obviously the Chinese economy will too. We are two countries struggling in the water, drowning each other. We screwed China, and everyone thought the Chinese somehow owned the US. They don't. They are completely reliant on us.

A guy (the US) goes into a bar (China) but needs a loan for a drink. The bar starts a tab. The bar is now screwed because the biggest customer was that guy. China can't float the tab, when the guy who owes is also the majority of that bars sales. Sure it might be OK for a week, but a month from now the bar is closed.

meh mildly relevant. I'm in my happy place right now.
edit on 20-3-2012 by Domo1 because: (no reason given)

posted on Mar, 20 2012 @ 11:04 PM
Would it be correct that China was manufacturing their butt's off and the U.S. were buying (chinese made products) their butt's off so that when the U.S. economy hit the wall, they are now feeling the effects and having to now downsize? That means it is in Chinas best interest to see the U.S. economy prosper, which means the U.S. controls the Chinese economy! Is the U.S. the largest purchaser of Chinese goods? Why does'nt the U.S. boycott Chinese goods?

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