SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: russwinter who wrote (25605)3/24/2005 3:31:26 AM
From: croesus1111  Read Replies (1) of 116555
 
<actual outcome of a Train Wreck based China slowdown, is a fracturing of China's money losing export based economy. When these enterprises fail, it will disrupt the global supply chain.>

I don't know, you have to remember that China is to some extent still a command and control economy, and the leadership fears discontent among the workers above all else. The leadership will not easily allow the state-owned businesses, and other marginal enterprises to just shut down. To the extent that they are able to, they will subsidize to prevent these enterprises from going under. They will use some or all of their forex resources to do it. What you are talking about would require a catastrophic recession. What evidence do you have of that magnitude of a slowdown being imminent? After all, Japanese banks have been essentially insolvent for fifteen years or more, and their government has saved them all this time...
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News