Free Markets, Free People

Is China heading us toward another global recession?

I found this interesting:

Chinese policy makers seem unwilling to accept that downturns are perfectly normal even for economic superpowers, as the U.S. has often demonstrated. Over the past century the U.S. economy experienced a dozen recessions and a Great Depression even as it remained the world’s leading economy. But Beijing has little tolerance for business cycles and is now reviving efforts to stimulate sectors that it had otherwise wanted to see fade in importance, from property to infrastructure to exports. Given the over-investment in these areas and the cloud of debt that still hangs over the Chinese economy, these efforts are unlikely to lead to a sustained upturn. While China reported that its GDP grew exactly in line with its growth target of 7% in the first and second quarters this year, all other independent data, from electricity production to car sales, indicate the economy is growing closer to 5%.

That leaves the global economy perilously close to recession territory. In the first half of 2015, global economic output expanded by barely 2%, making it the weakest two-quarter period since the expansion began in mid-2009. Industrial production and world trade growth were flat, developments that in the past have corresponded with global recessions.

Funny how that “5 year plan” reporting hasn’t changed a bit.  And, of course, we too get that sort of reporting from out government too. Don’t believe it?  Just ask Bernie Sanders about the real unemployment rate.

Yup, if it comes to a global downturn again, as with the last time, it will be caused by … government.


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6 Responses to Is China heading us toward another global recession?

  • Well, wouldn’t that just frost the cake…

  • Not to mention the officially unmoving debt reported by the US Treasury for 70 straight days.

    • Great we don’t need to borrow anymore. Cease all borrowing by Congressional decree now.

      • Heh – you make joke!

        I’m sure we’re borrowing away merrily, they’re just lying about where and when it gets counted.

        Maybe we’re ‘saving’ the money by getting BOGO and 1/2 price discounts on things we don’t need.
        Write offs on college loan debt and mortgages for people who can’t afford them.
        Cots and meals for illegal immigrants, deals on bridges to nowhere & AR15’s for Mexican Drug Lords and MANPADs for friendly Syrian Jihadists
        low prices on worthless GM stock that we’ll sell back at a loss.
        SCI/SCP TOP SECRET Email servers stored in bathroom closets and hard drives that we scratch and throw away.
        Thumb drives that we give to lawyers and staff who should be in jail for the mere possession of said items.

        I’m quite confident that the list is not literally endless, just very difficult to find the end of.