China: The World’s Second Largest Economy In Trouble
~China’s Liquidity Crunch Slams Importers Who Are Defaulting, Reneging On Deals
I’ve given you some pieces to the puzzle from the article. It’s definitely worth reading the whole article. I’m not some financial whiz of course, and I admit that. But what is going on in China is a big deal and does, or at least WILL eventually effect the world economy as a whole.
From the article…..
…..the world’s greatest debt bubble is starting to burst, resulting not only in the first ever corporate default but also in the bursting of the associated biggest ever housing bubble.
…..While apologists of China’s collapse have been quick to point out that China’s credit collapse would be largely a domestic issue…..
(In other words…..mostly affect China)
…..one thing nobody can deny is that if and when Chinese trade routes grind to a halt, the downstream impacts would be devastating, and spread like wildfire as the offshore supply chain is Ice 9’ed.
…..traders at Asian trading firms say they are seeing a sharp rise in canceled contracts this year while other buyers are demanding heavy discounts.
The U.S. Department of Agriculture confirmed that China has canceled orders for 517,000 metric tons of soybeans….. South American soybean contracts have also been canceled because of weak demand, says trade journal Oil World.