Skyline Of Shanghai, ChinaAmerican Recession, Chinese Depression? Parallels
To 1929 -- Business Week
To 1929 -- Business Week
Is China today like the U.S. in 1929?
This morning brings reports that U.S. imports plummeted in November.Since August non-petroleum imports, adjusted for inflation, are down 10% with no sign yet of a bottom.
At the same time, Chinese exports are starting to fall. According to this morning’s report,
Exports were down 9 percent from a year earlier in yuan — a jolting deceleration for a country where exports were still growing at an annual rate of nearly 30 percent in the summer of 2007.
The odds are that this decline in Chinese exports will continue. What does this mean for China’s economy?
Read more ....
My Comment: The consequences on geopolitical stability will be profound if China goes through the same course of events that American did in the 1930s. Instability, anger, nationalism .... all of the poisonous parts of Chinese society will burst onto the scene.
Like the 1930s .... the atmosphere for war and conflict will be ripe for it to develop, nurture, and then spread.