why should we worry about economic growth in china?

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Why Should We Worry about Economic Growth in China? By www.TraderNewsAndReviews.com .

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Page 1: Why Should We Worry about Economic Growth in China?

Why Should We Worry about Economic Growth in China?

By www.TraderNewsAndReviews.com.

Page 2: Why Should We Worry about Economic Growth in China?

www.TraderNewsAndReviews.com

What happened to the Chinese economic miracle?

Page 3: Why Should We Worry about Economic Growth in China?

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In the land of “managed capitalism” all is not well as economic growth slows.

Page 4: Why Should We Worry about Economic Growth in China?

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Why should we worry about economic growth in China?

Page 5: Why Should We Worry about Economic Growth in China?

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It is one thing if the economy of a small country tanks.

Page 6: Why Should We Worry about Economic Growth in China?

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But what if the second largest economy in the world heads crashes?

Page 7: Why Should We Worry about Economic Growth in China?

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What happened and how will trouble in China affect your investments?

Page 9: Why Should We Worry about Economic Growth in China?

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For years now, Donald J. Trump has been sounding the alarm on China, calling it an economic bully that has been “eating our lunch.”

Page 10: Why Should We Worry about Economic Growth in China?

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The crux of Mr. Trump’s attack is that Beijing manipulates its currency to keep it cheap and give Chinese exports an unfair advantage.

Page 11: Why Should We Worry about Economic Growth in China?

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But that narrative is so last decade. China is now a threat to the United States not because it is strong but because it is fragile.

Page 12: Why Should We Worry about Economic Growth in China?

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Since the 2008 financial crisis world trade has fallen sharply, national debts are up substantially and countries are going back to autocratic rule with self-destructive consequences.

Page 13: Why Should We Worry about Economic Growth in China?

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In all of these categories China leads the pack.

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Adding to China’s worries is the shrinkage of its working age population due to the one couple, one child policy.

Page 15: Why Should We Worry about Economic Growth in China?

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For years China’s economy grew at 10% or more and its purchase of raw materials from around the world was a boon for developing nations.

Page 16: Why Should We Worry about Economic Growth in China?

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China claims that its growth is in the 6% range but many believe that 4% is closer.

Page 17: Why Should We Worry about Economic Growth in China?

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In order to maintain growth China is running up its debt funding poorly thought out projects.

Page 18: Why Should We Worry about Economic Growth in China?

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The end result is an acceleration of their debt which has hit 249% of its GDP.

Page 19: Why Should We Worry about Economic Growth in China?

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Why again should we worry about economic growth in China?

Page 20: Why Should We Worry about Economic Growth in China?

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Risk to Global Markets

Page 22: Why Should We Worry about Economic Growth in China?

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Slowing growth amid rapidly escalating debt has troublesome implications.

Page 23: Why Should We Worry about Economic Growth in China?

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Much of the credit is going to unproductive uses and propping up bad debts.

Page 24: Why Should We Worry about Economic Growth in China?

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The longer that continues, the bigger the eventual debt implosion may be.

Page 25: Why Should We Worry about Economic Growth in China?

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A China debt crisis would ripple through the global economy.

Page 26: Why Should We Worry about Economic Growth in China?

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Commodity producers that rely on China demand would buckle.

Page 27: Why Should We Worry about Economic Growth in China?

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Global financial markets would see a stampede away from emerging markets and risk generally, exacerbating the direct effects of a China hard landing.

Page 28: Why Should We Worry about Economic Growth in China?

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U.S. Treasuries, gold and other traditional safe havens may fare well, but not much else.

Page 29: Why Should We Worry about Economic Growth in China?

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China is an old hand at covering up its problems and hiding the true facts.

Page 30: Why Should We Worry about Economic Growth in China?

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The International Monetary Fund estimates that around 15.5% of commercial bank loans totaling $1.3 Trillion are at risk in China.

Page 31: Why Should We Worry about Economic Growth in China?

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15% to 19% of outstanding loans are nonperforming according to estimates from Hong Kong and this could go as high as 25% which is nearly twice the IMF estimate.

Page 32: Why Should We Worry about Economic Growth in China?

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So, Why Should We Worry about

Economic Growth in China?

Page 33: Why Should We Worry about Economic Growth in China?

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As Chinese orders for raw materials fall off developing economies across the globe suffer.

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They in turn will buy less from US exporters.

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In fact, Reuters writes about underlying weakness in U.S. manufacturing.

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When no one offshore has any money and lots of debt no one buys U.S. products.

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China could end up selling off all of its US treasuries in a last ditch effort to prop up the Yuan.

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And as a last result China could resort to military adventurism in an effort to drum up patriotic support back home as the economy tanks.

Page 39: Why Should We Worry about Economic Growth in China?

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