THE WORLD IS ON BRINK: An Outright TRADE WAR Imminent, Export Orders Collapsing Around The World, China Is On The Cusp of A Deflationary Vortex, And ESM Didn’t Have Enough To Rescue Spain

Saturday, October 13, 2012
By Paul Martin

Investmentwatchblog.com
October 12th, 2012

US to implement tariffs on imports from China
Rumors that the United States would slap tariffs on China goods are now reality. The US Commerce Department set duties on billions of dollars of solar energy products from China

** DAVID ROSENBERG: The Last Two Times Export Orders Collapsed Like This, We Were In A Recession

Ambrose Evans-Pritchard: The last thing the world needs now is a deflationary shock from China
July 9th, 2012

China is on the cusp of a deflationary vortex.

China is on the cusp of a deflationary vortex.

This was signalled late last year by the sharpest contraction in the (real) M1 money supply since modern records began. The hard data is now confirming the warnings.

Consumer prices have been falling for the last three months, producer prices have been falling for four months. This is not a food cost story. It is systemic.

“While an economy-wide generalized deflation is yet to be seen, the deflationary spiral looks to have started in some industrial sectors, attesting to considerable stress with the economy. Persistent deflation can be poisonous,” said Xianfang Ren from IHS Global Insight in Beijing.

Indeed it can be poisonous, and China already has the twin-afflictions of the deflation malaise: a fast aging nation, and a surfeit of factories and industrial plant.

China Will Grow Old Before Growing Rich, And It Will Bring Down The Rest Of Asia

The Rest…HERE

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