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| English: China Premier Wen Jiabao deliver the Report on the Work of the Government at the Third Session of the Eleventh National People's Congress on March 5, 2010 (Photo credit: Wikipedia) |
SAN LUIS OBISPO, Calif. (MarketWatch) — America’s facing not one but four “fiscal cliffs”: Bush-era tax cuts, Pentagon budget cuts, social-program cuts and the continuing battle over “Obamacare.” China, though, has even bigger problems.
Five months ago, we quoted World Bank President Robert Zoellick’s warning of “a spreading crisis” in China that could consume the $75 trillion global economy. Back then we bluntly asked: “China? Or America? Who will crash the global economy first?” Think: China. See First Take: China headed for a landing.
Reuters China’s slowdown has markets on edge all over the world.
China’s economy of 1.3 billion people continues slowing, according to the latest GDP-forecast downgrade from Premier Wen Jiabao, reported Keith Bradsher of the New York Times. Earlier this week, MarketWatch’s Carla Mozee reported that China’s slowdown is already impacting stocks in Brazil, one of China’s leading trading partners. Full story: Brazil stocks drop on China slowdown worries.
So let’s shift our attention away from election-year bickering and ask: “Will China push America into a recession and new bear market?”
“China might already be in recession,” warns Trefor Moss in his brilliant “5 Signs of the Chinese Economic Apocalypse” in the journal Foreign Policy. Actually, five huge apocalypses. “The numbers show that the country’s storied growth engine has slipped out of gear. ... Continue to read.
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