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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (126463)12/19/2016 1:04:18 AM
From: elmatador  Read Replies (1) | Respond to of 217542
 
It is two items: High Interest Rates and Encirclement.

It is the latest red flag over China’s ballooning debt, which rose to a record 237 per cent of gross domestic product in the first quarter on the back of massive lending designed to boost economic growth.
...

the state-owned enterprises, which he said were responsible for 55 per cent of the corporate debt pile despite representing 22 per cent of economic output and which “are essentially on life support”.

“In a setting of slower economic growth, the combination of declining earnings and rising indebtedness is undermining the ability of companies to pay suppliers or service their debts,” Mr Lipton warned. “Banks are holding more and more non-performing loans [and] the past year’s credit boom is just extending the problem.”




China is desperate to find exogenous growth as the internal growth engine no longer delivers. But we know that higher technology first sheds workers before employing new numbers, It is this hysteresis that causes trouble for all countries and western countries are used to it as they have been through them in the past.

The encirclement is geopolitics as usual. It should not be there if China had reined in the red guard second generation but we know that the men in uniform demands the weapons they thing they need and the respect they think they deserve,.