Dec 09

Behold The Deflationary Wave: How China Is Flooding The World With Its Unwanted Commodities:

Between commodity-backed financing deals and the centrally-planned mal-investment boom-driven excess capacity, China has a lot of ‘liquidation’ to do to normalize from a credit-fueled smoke-and-mirrors world to a painful reality. As Bloomberg notes, there’s no let-up in the onslaught of commodities from China. While the country’s total exports are slowing in dollar terms (as we noted last night), shipments of steel, oil products and aluminum are reaching for new highs, flooding the world with unwanted inventories. China’s de-glutting is now the rest of the world’s problem as the deflationary tsunami grows ever higher.

This is not going to end well. Not for anybody. Other than the arms lobby. What it will do is change geopolitics forever, and a lot.

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One Response to “Behold The Deflationary Wave: How China Is Flooding The World With Its Unwanted Commodities”

  1. squodgy Says:

    All very well, but only if the demand is there.

    Inflation is most noticeable on essentials like food, power, etc. Unnecessary/luxury items are reducing in price and heavily marketed.

    Increasingly, demand is focused on essentials and secondary essentials, followed by replacements and lastly the heavily marketed fashion statement goods.

    Prioritisation will benefit the ordinary man in the near term.

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