China slowdown, market jitters threaten world economy: IMF

ctvnews ^ | Paul Wiseman

[BenLurkin]

The Chinese economic slowdown, though long anticipated, "appears to have larger-than-previously-envisaged" repercussions in other countries, the IMF said. China's troubles have sent the prices of raw materials such as oil and copper into a freefall, pinching Brazil, Russia and other commodity exporters.

The report did not revise the fund's economic forecasts for this year, last updated in July, though it concluded that "downside risks have risen."

The IMF expects the global economy to grow 3.3 per cent this year, little-changed from 3.4 per cent in 2014; the U.S. economy to grow 2.5 per cent, versus 2.4 per cent in 2014; the 19-country eurozone to grow 1.5 per cent, nearly double 2014's 0.8 per cent; and China to grow 6.8 per cent, down from 7.4 per cent last year.

Some economists expect Chinese growth to decelerate even more -- to below 6 per cent. The Chinese stock market has been falling since mid-June, and on Aug. 11 Chinese authorities unexpectedly devalued China's currency, the yuan. They said they were responding to signals from investors that the currency was overvalued. But skeptics feared it was a desperation move to give Chinese exporters a competitive advantage -- and a sign the economy was weaker than anybody realized.

...

The IMF is also worried about the potential fallout if the U.S. Federal Reserve decides this year to raise the short-term interest rate it controls, pinned near zero for seven years. Higher U.S. rates would likely lure investment out of emerging markets to America and drive up the value of the U.S. dollar. That could shake up global markets. It could also squeeze emerging-market companies that have borrowed in U.S. dollars and would have to scrounge up more money in their local currencies to meet the payments.

[FlingWingFlyer]

They’ve been saying all day on the radio that Obonzo’s “conomy b boomin’”.

[4rcane]

is china growing at 6.4% now sold to us as a negative

[4rcane]

US growing at 2.5% is sold to us as a great positive

[jsanders2001]

Ezekiel 7 19“ ‘They will throw their silver into the streets, and their gold will be treated as a thing unclean. Their silver and gold will not be able to deliver them in the day of the Lord’s wrath. It will not satisfy their hunger or fill their stomachs, for it has caused them to stumble into sin. 20They took pride in their beautiful jewelry and used it to make their detestable idols. They made it into vile images; therefore I will make it a thing unclean for them. 21I will give their wealth as plunder to foreigners and as loot to the wicked of the earth, who will defile it. 22I will turn my face away from the people, and robbers will desecrate the place I treasure. They will enter it and will defile it.

[allendale]

The IMF has it a bit backwards. China is dependent on exports for the health of its export oriented manufacturing economy. The world is in recession, less productive and is buying far fewer Chinese products. If you can’t sell business contracts.

[Jack Hydrazine]

Jeff Berwick-Nothing but Black Swans Ahead
https://www.youtube.com/watch?v=9DT4qrrRe7Q

[Jack Hydrazine]

SHORT EVERYTHING!!!!