General Discussion
In reply to the discussion: If the economy tanks now due to a worldwide crash, do not expect this to benefit [View all]Munificence
(493 posts)"..... is merely a reaction to a SLOW DOWN in the growth of the Chinese economy coupled with them fucking with the value of the Yuan."
It's a lot more in depth than that. China might account for 10-15% of it, the rest is that the Fed cranked $4 trillion into propping things up over the past 4 years, which now they say they are gonna raise rates (won't happen) that $4 trillion of FRN creation was responsible for 20% of GDP in the same time frame...and all we can get is 2% growth in GDP by cranking in nearly a trillion of free money each year?
Also, the U/S has tried to hammer Russia (along with the help of Saudi) on the price of Oil, well the Asian countries are tired of the U.S and the petrodollar and are devaluing their currencies against the dollar. We are no doubt in a monetary war with at least 20 nations. Why do you think oil is so low?
These are interesting times, lot more difficult than simply blaming it on the "Boogeyman Man China", but that is such a great talking point, kind of like "terrorists" and such.