China Economic “Miracle” Has Failed What’s Next For the Stock Market?

[Hellraiser007]

China Economic “Miracle” Has Failed… What’s Next For the Stock Market?


China, which the investment world blindly continues to believe will power the global economy to growth, just posted its single worst export data since 2009.

All in all, Chinese exports fell 3.1% from a year earlier. Analysts had forecast growth of 3.7%. The reason? They continue to believe China will somehow pull a rabbit out of a hat and grow exports at a time when the global economy is sharply contracting.

Let’s look at the facts here.

In the last six months, China has pumped roughly $1.6 trillion in new credit (that’s 21% of GDP) into its economy. Despite this incredible monetary expansion, Chinese GDP growth is slowing.

Mind you, this slowing growth is occurring even after China massages the heck out of its GDP data. As I recently told my Private Wealth Advisory subscribers, when you look at electrical usage by the People’s Republic, real GDP growth is likely just 2.9%.

This is truly astounding: a country has expanded its credit by 21% of GDP in just six months and is barely able to generate positive GDP growth. Small wonder that the Chinese stock market has taken out its post-2009 trendline.

China is giving us a taste of what will be spreading throughout the global economy: a collapse in spite of massive monetary expansion. The entire “recovery” since 2009 has been based Central banks pushing money into the financial system… which did little more than allow corporations to borrow even more debt.

Indeed, globally the leverage in the financial system today is as bad if not worse than it was going into the 2008 Crash. Can you imagine what would happen if we suffered another collapse now, when Central Banks are already pumping their brains out trying to push market higher?

On that note, NOW is the time to prepare for another stock market bloodbath BEFORE this happens.

I’ve been warning subscribers of my Private Wealth Advisory newsletter that we were heading for a dark period in the stock market. We’ve since taken action to insure that when the market falls, we make money.

http://www.marketoracle.co.uk/Article41328.html

 

[Guynextdoor2]

Ow man, please don't give more bad news on the world economy!

 

[Infinity]

We are not better either......................

 

[Hellraiser007]

Ow man, please don't give more bad news on the world economy!

It is Chinese economy and the present slump is due to the crack down of fake invoices. This faking up of statistics is happening over a decade now and the real GDP of China and percapita of China is much lower than what CCP boast .

 

[beijingwalker]

no matter how hard we try,we can never match India in terms of failure,it's so low at the bottom and beyond the reach of most countries in this world.

 

[beijingwalker]

China has the biggest ports ,bridges ,dams,air ports,buildings,subway lines,high speedrail ways...in the world if we failed,what would you say about India where infrastructure is almost like nothing.

 

[Hellraiser007]

no matter how hard we try,we can never match India in terms of failure,it's so low at the bottom and beyond the reach of most countries in this world.

Why bring India into this, Our economy is fine and we do not fake statistics. The prediction is that China will not recover for atleast 3 years from now (i.e) tough times ahead for china.

Even by then with the increase of wages Chinese can never repeat what they did in the last decade.

Now plan a war and fight with every neighbor around you ........

 

[SarthakGanguly]

Two logical inferences can be drawn from your statement.
1. India has failed in a number of things, true, but 'low at the bottom' and all is your imagination.
2. You are trying very hard to reach the level of 'Indian' failure. That 'Indian' failure that is in your imagination.

In that case I can give you some free advice - you are trying too hard to fail. Who knows you may succeed in that as well!

no matter how hard we try,we can never match India in terms of failure,it's so low at the bottom and beyond the reach of most countries in this world.

 

[Hellraiser007]

China has the biggest ports ,bridges ,dams,air ports,buildings,subway lines,high speedrail ways...in the world if we failed,what would you say about India where infrastructure is almost like nothing.

All the money you have poured got freezed, these infra structure projects dealt a double blow for you. since they cannot be used if exports and imports fall, due to global economic slowdown.

 

[beijingwalker]

comparing with China ,India's development is so low and the way to move is up.even China sits here doing nothing but suckingg her thumb,it will be decades until Indian can even come close to China

Our miracle is the biggest story of this century and India's miiracle is being the home to one third of the world's poor and mass infant malnutrition ,no one can even come close to India in those realms.

 

[antonius123]

Why bring India into this, Our economy is fine and we do not fake statistics.

Really?

Read this fact:
Indian economy is in a crisis: Study - The Times of India
Economic crisis: India among most vulnerable nations - Rediff.com Business

The prediction is that China will not recover for atleast 3 years from now (i.e) tough times ahead for china.

Even by then with the increase of wages Chinese can never repeat what they did in the last decade.

Now plan a war and fight with every neighbor around you ........

China still could enter another miracle by keep maintaining economic growth around 6% while her economy is already so big, also by competing with Europe, USA, Japan, Korea in high tech sectors.

 

[Star Wars]

Ow man, please don't give more bad news on the world economy!

Its gonna get worse .... A lot of Austrian economists predicted this back in 2007 and 2009 when the supposed "recovery" was happening .... am no good with economics but whatever they r saying seem to be happening...

 

[Hellraiser007]

]Really?

Read this fact:
Indian economy is in a crisis: Study - The Times of India
Economic crisis: India among most vulnerable nations - Rediff.com Business

Our economy is based on domestic consumption and slowly we are also setting up manufacturing sectors and developing tier 2 cities as a part of it. No need to worry about present scenario since most of the investments from foreign will favor us soon because of low wages and availability of human resources..

China still could enter another miracle by keep maintaining economic growth around 6% while her economy is already so big, also by competing with Europe, USA, Japan, Korea in high tech sectors

There are no miracles in hitech sectors as is evident from USA's experience with China in the last decade.

comparing with China ,India's development is so low and the way to move is up.even China sits here doing nothing but suckingg her thumb,it will be decades until Indian can even come close to China

Our miracle is the biggest story of this century and India's miiracle is being the home to one third of the world's poor and mass infant malnutrition ,no one can even come close to India in those realms.

Biggest story in the sense, biggest manipulator of stats in the history.

 

[Guynextdoor2]

Its gonna get worse .... A lot of Austrian economists predicted this back in 2007 and 2009 when the supposed "recovery" was happening .... am no good with economics but whatever they r saying seem to be happening...

Yeah, I'm sure bonus and incrment will be screwed again

 

[beijingwalker]

Biggest story in the sense, biggest manipulator of stats in the history.

you can cry denial but the whole world,even Indians themselves know how far behind India is comparing with China.ok,deny it,it can only make this thread more fun,lol...