Per previous blog entry, China's Q4 growth came in at 6.5%, BUT, given they report quarterly numbers using a trailing 12 month average, the sharp drop indicates actual growth was zero, or negative.
This is a bit of a shock to conventional market wisdom, yes China (and India) were expected to slow markedly but few thought they would also be in recession. The ramifications of a unified global recession are enormous, and this new reality shifts all expectations for recovery downward.
If China is worse off then thought, expect them to spend their savings stimulating their own economy! Good God, why should the US expect them to continue to buy their debt issues to finance their stimulus program? Chimerica is dead! Did you hear Gheitner's comments on China this morning, careful Tim don't bite the hand that feeds you (what a chump...how can a tax cheat be nominated as US Treasurer...oh I forgot, the illuminati said it shall be, make no mistake about it)
So, who then is going to buy all the US bonds used to finance the $3Trillion 2009 US deficit?
Answer: US Federal Bank (via printing press)
And, we enter the Dark Interregnum...
- Rinx
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