Monday, May 23, 2011

SOS Who is Slowing Down?



By Mike Shedlock
















Add China to the global slowdown list.Bloomberg reports Chinese Manufacturing Index Drops to Lowest Level in 10 Months










MyView



US of A - credit creation is contracting, so, is the economic growth. According to Gary Shilling, unsold housing still high i.e. 2 to 2.5 million units and unemployment is high as well around 9%.



Europe - PIIGS debt problem



Japan - Tsunami and nuclear problem



China - Running inflation and reliance on construction



Australia - Housing Bubble is

BRICS - the moment the C slow down, the rest resources countries are in trouble.



MENA - chaotic, revolution




It is no coincidence when so many "bad" news are happening at the same time. Is it the end of the world, no, just another hurdle to cross. Most of the problem arises from unstopable credit creation over the last few decades & couple with derivatives casino establishments (of course due to human greed and corruption). Until this two major issues are resolve, there is high probability the world will slowdown generally.






The only solution that can be offered is to gradually deleverage and let the too big to fail, fail, period. No two ways about it, either way, one have to go through a tough time. Most politician prefer slow death than a heart attack.

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