World asleep as China tightens deflationary vice

[W.G.Ewald]

World asleep as China tightens deflationary vice

China's Xi Jinping has cast the die. After weighing up the unappetising choice before him for a year, he has picked the lesser of two poisons.

The balance of evidence is that most powerful Chinese leader since Mao Zedong aims to prick China's $24 trillion credit bubble early in his 10-year term, rather than putting off the day of reckoning for yet another cycle.

This may be well-advised for China, but the rest of the world seems remarkably nonchalant over the implications. Brazil, Russia, South Africa, and the commodity bloc are already in the cross-hairs.

 

[Srinivas_K]

World asleep as China tightens deflationary vice

Chinese Credit Crisis do not have any affect on some of the countries in ASEAN and India. Which is also a good thing.

Regarding trade with China, India is moving ahead in the direction of self reliance manufacturing wise, so any crisis in China will be turned into India's advantage.