barryqwalsh
Gold Member
- Sep 30, 2014
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A faltering China could tip the world back into recession. Because China is a huge customer for raw materials (grains, metals, fuels), their prices would remain depressed. China’s surplus capacity of basic industrial goods, such as steel, would be increasingly exported, also depressing prices. This would dampen any recovery in global business investment. Confidence would suffer.
What about political fallout? “The Chinese government has maintained its legitimacy by promising economic progress,” sayseconomist Eswar Prasad of Cornell University. If the promise seems broken, it’s hard to know how China’s masses would react. Or China’s leaders. Would they become more nationalistic and aggressive to deflect attention from economic disappointment?
China s coming crash - The Washington Post
What about political fallout? “The Chinese government has maintained its legitimacy by promising economic progress,” sayseconomist Eswar Prasad of Cornell University. If the promise seems broken, it’s hard to know how China’s masses would react. Or China’s leaders. Would they become more nationalistic and aggressive to deflect attention from economic disappointment?
China s coming crash - The Washington Post