Friday, June 17, 2016

Richard Duncan: 
China's Hard Landing Has Already Begun
Discussion between Economist Richard Duncan & Gordon T Long* on the current Chinese situation & the ramifications being imposed on the global economy. .. "China’s economy resembles a spinning top that is running out of momentum. It is wobbling and gyrating erratically." .. China is really just running into a brick wall. If they continue to have more & more credit growth, it will only exaggerate their problem. This is essentially the nature of China’s current problem. A stock market crash, diminishing returns on credit, a plunge in imports, capital flight & currency volatility are all signs that China’s great economic boom is now coming to an end. In all probability, this is just the beginning of what is likely to be a very protracted economic slump .. "China is increasingly misallocating and wasting credit." ..  on China's reserves: "Rather than the reserves shrinking, the more important thing to note is that they have not been growing." .. 55 minutes

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