China is Just Another Front in the Zombie War
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The trouble in China has little to do with the stock market. The trouble is in the economy. It is managed, controlled, and centrally planned.
China is just another front in the Zombie War. The authorities there are under more and more pressure to hold onto their power, their money, and their status. The result: too much debt and malinvestment.
And Chinas zombie feds are using all the tricks in the book to try to prevent an economic slump just like in the U.S., Japan, and Europe. This has wide-ranging repercussions. China is the worlds biggest consumer of commodities. As colleague Chris Lowe reports below in Market Insight, thats why a slowdown in Chinese demand is hitting commodity prices hard.
Global mining stocks have lost $143 billion nearly 20% of their value in the last 10 days. Crude oil prices have fallen, too. Some analysts now say oil will drop as low as $20 a barrel. As we warned Bill Bonner Letter readers in April, China could fall into a recession or even a depression. And unlike Greece, China the worlds second largest economy will have a huge effect on the rest of the world. ......................(more)
http://wolfstreet.com/2015/07/09/china-is-just-another-front-in-the-zombie-war/