Posted on 08/22/2015 3:10:52 AM PDT by dennisw
Short-seller Jim Chanos, who has been bearish on China's economy for several years, has a disturbing insight on China: “It’s worse than you think.”
“Whatever you might think, it's worse," he told CNBC.
He spoke as worries of a deepening China economic slowdown intensified Friday after a private survey showed the factory sector shrank at its fastest rate in almost 6-1/2-years in August, hammering global stocks and commodity prices.
U.S. stocks dropped sharply for a second day following a sell-off in major indexes around the world on the growing evidence that China's economy is slowing. The Dow Jones industrial average fell 296 points, or 1.7 percent, to 16,694 as of midday Friday Eastern time.
Chanos did not classify the drop as a correction or a bear market. But he noted that the years long bull market in the U.S. shows that "we've gotten a little complacent."
Earlier Friday in China, the preliminary Caixin/Markit China Manufacturing Purchasing Managers' Index (PMI) stood at 47.1 in August, well below a Reuters poll median of 47.7 and down from July's final 47.8. Special: New Probiotic Fat Burner Takes GNC by Storm
It was the worst reading since March 2009, in the depths of the global financial crisis, and the sixth straight one below the 50-point level, which separates growth in activity from contraction on a monthly basis.
"Uncertainty about China growth is now the main swing factor in markets," "Today's data reinforced the doubts about global growth."
Chanos said the Chinese government's reaction to a stock spike, "panic responses" from investors and recent currency devaluation has "given investors pause."
"People are beginning to realize the Chinese government is not omnipotent and omniscient," he said. "In fact, like many of us, sometimes they don't have a clue."
(Excerpt) Read more at newsmax.com ...
“you assigned the causes in a way that indicates liberal prescriptions.”
Could you point out my assigned causes out to me? I only had abut two posts on the matter. You must be insane.
“But dude, WTF do you think is done with that steel.”
First of all, I never mentioned the word ‘steel’, so maybe I received the response to a different post. Nonetheless, in response, If steel manufacturing were the only thing that China did, your point would be valid. As it stands, China has surpassed us as the world leader in overall manufacturing.
As of 2011 China produced 90.6% of all the personal computers made in the world; 80% of all the air conditioners, 80% of all energy efficient light bulbs, 70.6% of all cell phones, 63% of all pairs of shoes, and the list goes on. We’ve lost a ton of jobs in the US, and part of that is because of government regulations and unions driving up labor costs etc., as you said, but not all of it. I stand by what I said in my previous post.
That said, another point that people need to consider is that in any society there will be people who define themselves to a large extent by their jobs and what they do for a living, and there will be those people for whom work is just what has to be done in order to earn enough to enjoy their lives. Those are two different approaches to life, and IMHO neither one is superior, either from the perspective of morality or of ‘sophistication’. Further, the choice of which path one takes is not a determinant of intrinsic intelligence. It’s a choice, which involves lots of factors.
Given the above, every society needs good job opportunities that don’t require a significant number of years of training and 12-16 hr/day time commitment. In the past, those jobs existed in manufacturing, and we have proportionally less of them now. Not everyone in society is going to wind up in ‘high tech’ jobs, no matter where you get steel from, and what price you pay for it.
Idle thought I had the other day. We need to expand clean coal technology because not only is that a technology we can export, if DT succeeds in trade negotiations, other countries cleaning up their act could be a condition of doing business with us. Implement our huge coal reserves plus achieve real ecological goals (mercury poisoning #1), goals Obama never could reach are accomplished thru Capitalism. Whereby we make a little Money, and leave the world less toxic.
The only people stopping at the Obama Presidential Library will be looking for a place to pxss ;)
The steel was a case study.....twice we’ve put tariffs on foreign steel to save a few thousand steel worker jobs.....and the losses in automotive, construction, etc, were far far greater.
The second reason to mention steel is that it is part of our “trade deficit” - which is based on the fiction that buying from other countries is bad. It is not...the steel, the cell phones, a lot of stuff from China leads to business growth, wealth and jobs here.
And the third notion is that our problem is not China. Our problem is liberalism. Get rid of a lot of that, and it won’t make a damned bit of difference what China or Mexico or anyone else does.
Post 8 and 10 - you did. Not in 23 or 30
I just read 8 & 10. No offense, but you are insane.
LOL!
And for quite some time.
Remember what Trump said on June 16th when he announced his run for the Presidency?......”When was the last time anybody saw us beating, let’s say, China in a trade deal? They kill us. I beat China all the time. All the time..........A lot of people up there can’t get jobs. They can’t get jobs, because there are no jobs, because China has our jobs .........they don’t talk jobs and they don’t talk China. When was the last time you heard China is killing us? They’re devaluing their currency to a level that you wouldn’t believe. It makes it impossible for our companies to compete, impossible. They’re killing us.
But you don’t hear that from anybody else. You don’t hear it from anybody else. And I watch the speeches.
FIRST TANJIN EXPLOSION IN CHINA
EXPLOSION IN JAPAN U.S. BASE
ANOTHER EXPLOSION IN CHINA TONIGHT
The Shangai Market has gone from around 5100 to 3200 since June of this year.......what the hell happened in June of this year that would have instigated all this? June 16th?
dAMN....TRUMP ANNOUNCED HE’S RUNNING FOR PRESIDENT THAT DAY!
When was the last time anybody saw us beating, let’s say, China in a trade deal? They kill us. I beat China all the time. All the time.
who said that?
That’s when it started.
Perhaps.....But as you said, it's a matter of timing...which is why some have been touting the September time frame as a likely possibility, but it still depends on the butterflies....somewhere..
Trump is a factor but China was due for a fall with or without Trump. China does a huge trade with Europe in the same items they sell to us and Europe is not talking tough on trade.
The Communist China lovers just worry about cash flow. They consider the workers nothing more than nail used to build things with. Sometimes those workers over there will be happier and sometimes those overhere will be.
The fail to realize that trade with COMMUNIST CHINA BUILDS THEIR NUCLEAR WEAPONRY. (AS WELL AS OTHER WEAPONRY). In COMMUNIST CHINA, THE MILITARY TAKES THEIR CUT OF THE BUDGET PIE ....FIRST!
When we trade with them we are building our own electric chair.
“And what we have to do is to figure out how to make an economy work when those jobs just do not exist any more.”
To create news ones and maybe even old ones coming back. Try these on for size.
* 15% Flat Tax
* 15% Dividend, Cap-gains and Corp/Business Tax.
* Expense everything in year one of purchase 100% no deductions for businesses, (granted depletion is one thing that would need some thought)
* Repeal Sarbanes Oxley, Dodd Frank and every Econ-Banking reform since Clinton, re-instate Glass Steegal and come up with s simple Financial Marketplace common sense set of rules.
* Repeal Obamacare, HSA-Direct Primary Care equal access via the tax code is it’s replacement, Health Care becomes your only deduction, take it or loose it.
And some American universities are actively and rigorously recruiting Chinese students. They state due to desired diversity for the student body, but Chinese students pay cash, no need for grants/scholarships.
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