What Would Happen If China’s Economy Declines And Growth Decreases?
Posted by China Sourcing CommentatorAug 11
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The first thing that would happen is that prices for commodities that had been in short supply would decrease as the demand decreases. http://money.cnn.com/2008/12/01/markets/…
Thus estimates of the long term prices for oil etc. would also decrease:http://blogs.wsj.com/environmentalcapita…
Then there would be riots as Chinese workers get laid off without the safety net that the Communist economic system had provided:http://www.time.com/time/world/article/0…
The next thing that would happen is that the Chinese government would recognize that it is in real trouble:http://cnreviews.com/china_economy/china…
and cut interest rates in an attempt to stimulate growth:http://www.nytimes.com/2008/11/27/busine…http://www.businessweek.com/globalbiz/co…
And how do we know this? Because it is happening:http://online.wsj.com/article/SB12281354…http://managingthedragon.com/index.php/2…