– Copper & Yuan Tumble As China Manufacturing PMI Drops To Lowest In 8 Months, Output Plunges (ZeroHedge, March 23, 2014):
HSBC’s Flash China Manufacturing PMI printed at 48.1 (against a hope-strewn 48.7 bounce expectation). This is the lowest in 8 months and among the lowest prints since Lehman. Even the usually silver-lining-seeing HSBC Chief economist had little positive to add, “weakness is broad-based with domestic demand softening further.” Early strength in CNY, stocks, and copper is eroding fast.
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If they are claiming 48.1, it is probably closer to 38.1. Their export numbers are loaded with padding and outright lies.
They lie about everything to do with their exports because their entire economy relied on them. First, the US was their main customer. After the crash of ’07-’08, the Eurozone became the #1 customer. As the crash continued, and the world economy continues to sink, the Eurozone has stopped buying their junk, too.
Like any new country, their weaknesses far outweigh their strengths. Their good points were eliminated as they adopted the worst policies of the west and have no system in place to deal with all the changes.
China is in deep trouble. The world economy was depending on them to bail out the west, but they are no longer capable of scamming into that game……..the all show and no dough policies are really coming back to bite them.
Building cities and buildings that none of their people can afford may make good photo ops, but that is all. They presented the world’s largest building last year, and it was impressive as they can get, complete with an artificial seashore………unfortunately, it is nearly empty. Nobody can afford to open a business, office or buy a home there…..just like their ghost towns…….they are empty.
China was rating their GDP on what they built, not what they earned. How stupid is that? Needless to say, the all flash and no cash in the real economy is getting harder to maintain. They have at least 200 riots a day thanks to unemployment and suffering populace, but the news is never allowed on the Internet and the TV is shut down, too.
Their smog problem is as bad as was London in 1850, when the coal dust was so bad that one could not tell if it were day or night because of the dust………it is an awful mess.
Their rich are leaving, moving to climates more conducive to comfort, and that hurts, too. The US can tell them how painful it is when investments slow and stop…….the FED is carrying most of our national debt because foreign investment has nearly stopped in the US.
China isn’t going to be the foremost world power, Russia is liable to end up with that……it won’t be the Euro and the US is the Sick Man of the Americas.
This is what happens when all truth is removed from the financial markets and criminals gain control of the governments.