By CNN Global Public Square
For more “What in the World,” watch "Fareed Zakaria GPS" on Sunday at 10 a.m. and 1 p.m. ET
For the last few weeks we’ve been getting bits of news that add up to something big.
China is slowing down, dramatically. If it continues, it will have a profound impact on the rest of the world. GDP growth has dropped from about 10 percent last year to 7.6 percent in the latest quarter. Now that might not sound like much, but it might just be the beginning: like a dropping ball, we don't know if it has hit bottom yet. What we do know is that it will have widespread effects.
Take the example from Brazil since the 1990s. Brazil’s GDP has fluctuated around an average of 2.5 percent. But there’s a pretty stark correlation between GDP – as commodity prices rise or fall, Brazil's growth rate moves accordingly. The same is true for sub-Saharan Africa. Rates of growth closely track commodity prices. Those prices in turn, will increasingly track with China’s growth.
Australia is another example. It used to be called the “lucky country,” but this past week it recorded its biggest trade deficit in four years. Why? Prices of iron ore and coal are sharply down because of slowing Chinese demand.
From Australia, to South America, Africa, and beyond, China’s unprecedented rise has brought with it a boom for resource-rich countries. As China’s growth slows, the party is going to wind down.
Even the United States is not immune. I was struck by a report in the Wall Street Journal. “In 2009, U.S. met coal exports to China grew nearly six-fold, and grew by the same rate in 2010” Six hundred percent rises! But as China’s steel industry faces a loss this year, demand for U.S. coal has slowed. That’s contributed to layoffs for hundreds of coalminers in the state of West Virginia. Thousands of miners will have their pensions and health benefits reduced.
All these ripple effects lead back to China. To give you a sense of its importance, look at the market for metals. According to the World Bank, China’s consumption of refined metals has jumped 17 times since 1990. Its share of global consumption of these metals has jumped from 5 percent to 41 percent. Over the last decade, while China’s demand has been growing by 15 percent a year, the rest of the world’s has remained constant. China has essentially fuelled global growth in these markets. But now that China’s appetite is waning, commodity prices will fall – indeed are falling.
Oil prices are dropping as well. China consumes only about 10 percent of the world’s crude oil. But over the last decade it has contributed to nearly half of the global rise in demand. According to Morgan Stanley’s Ruchir Sharma, on average, China's appetite for oil has been increasing by 8 percent a year. This year, it’s growing at just a third of that amount – 2.5 percent. Now, if this slowdown is indeed the new normal for China, as many economists suggest, it has immense ramifications. All these countries which count on rising crude prices to balance their budgets – Russia, Venezuela, and many of the Arab states – are all going to struggle.
I don’t mean to paint a picture of doomsday. Despite China’s slowdown, it will continue to grow at more moderate 6 percent to 7 percent in the coming years. It’s a rapid rate for what is now a very large economy. But it will mean that the party is over for many countries and companies around the world. And they need to get used to the new normal.
© 2012 Cable News Network. Turner Broadcasting System, Inc. All Rights Reserved.
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for some countries who is depended from chine's 60% will broke .for the countries who depented 25% will take brief ,,so global of economy will broke...but this is good because will start a new strategy ,new poitice in economy raound the world...this is a bad side what globalisme do.
i saw you this sundy ..
thank you
If you spell china wrong then why would anyone listen to your predictions about china?
Because he's likely a lot smarter than you. Why? He likely speaks one language perfectly fluent (likely your limit), and obviously has a good working grasp if not perfect working knowledge of English.
Dan, who cares? Even if that's true, I can't understand a damn thing he's trying to say...
you should care.....just because you cant type in fluent english does not mean your not smart....yeah first impression makes you look a little dumb, but its not that he knows less then you. he could be as smart as you or smarter and just not have the knowledge to perfectly communicate with you
All I see are a bunch of English trained chinks, defending a sloppy English Chink. Chink Dan, and chink Nick.
Nick, you do not have a grasp on the English language yourself. Holy crap man. Read what you wrote.
All your base are belong to us.
ME AM BRAZIL!
Massive Chinese are now travelling abroad and see the rest of the world for the first time; I expect there will be more Singapore popping up in the near future.
Chinks are massively unpopular. No one likes them.
You're right, I see fat Chinese everywhere.
The Indian Debacle could overshadow the European crisis. GDP that has dropped off the cliff (4% est), budget deficits, collapse of Indian rupiah, rampant poverty, unemployment, FDI reversal, companies leaving town are some of the disastrous events that are threatening the Indian state. The downward spiralling is so severe that the Indian government has been unable to control it. Even the Americans have been unable to help and several trips by the treasury secretary were not helpful. This also has security repercussions for India and US defense secretary and secretary of state have flown in to counsel India on how to protect its borders with the help of Israel/IDF. Rumors have it that the breakup of India along the lines of Soviet Union is a very plausible scenario that I am sure intelligence agencies all over the world are factoring in their geopolitical stress tests.
Dream on Paki.
Wake up "Dooz". The only growth left in India is the hair between the legs. Value of rupee has tanked, inflation is in the clouds, stock market has crashed, corruption is rampant, hospitals are burning, people are dying in scores, societal values have rotted, Microsoft and GE are pulling the plug on call centers...Dell and Delta Airlines have almost packed up and shifted the call centers to Canada.
The Chinese have developed an antidote to the "Stink Bomb"threats from hindus. Billions of american skunks on steroids that will be let loose in India to neutralize the stench.Though I am not sure it will be strong enough.
A paki hiding behind a Chinese name, How pathetic can you guys get.
Paki courtship...
Din mein Bhaiyaa raat mein Saiyan.....
Paki love making....
Ahista Bhai jaan, Ammi jag jayeegi
I once sat next to an indian from bangalore on a plane and got sick due stench (body odour) coming from him. had to change seats. very poor hygiene these hindus....don't shower much...phhhewwwwww !!!!!
India is on life support and lungs are collapsing fast. RIP!!
Rupiah is the Indonesian Currency Not Indian.
Indian Economy is Built on the foundation of Knowledge economy and still pretty young.
We have seen the Worst in the past. We are seeing a Bright future in the Horizon...
INDIA: On a Goat and a Stick:
The problem with India is that is built on a system of cultural and societal values based on Hinduism which is a cult. Nations built on a cult seldom survive in the long run. You can only take it so far based on symbolisms of a goat and a stick with a skinny little man aka gandhi banging boys at night and spinning wheels during daytime.
India is a beautiful country with amazing and varied religions.
New, More Dangerous Hindu Extremist Groups Emerge in India
Christians concerned as rightwing factions splinter to form militant outfits.
PUNE, India, October 29 (CDN) — After more than a decade of severe persecution, India’s Christian minority is growing increasingly concerned over the mushrooming of newer and deadlier Hindu extremist groups.
Gone are the days when Christians had to watch out only for the Vishwa Hindu Parishad (World Hindu Council) and its youth wing, Bajrang Dal, which are closely linked with the most influential Hindu extremist umbrella organization, the Rashtriya Swayamsevak Sangh (RSS). With voter support faltering for the RSS’s political wing, the Bharatiya Janata Party (BJP), moderate and extremist sections within the Hindu nationalist movement are blaming each other, and militant splinter groups have emerged.
Claiming to be breakaway factions of the RSS, new groups with even more extreme ideology are surfacing. The Abhinav Bharat (Pride of India), the Rashtriya Jagran Manch (National Revival Forum), the Sri Ram Sene (Army of god Rama), the Hindu Dharam Sena (Army for Hindu Religion) and the Sanatan Sanstha (Eternal Organization) have launched numerous violent attacks on Christian and Muslim minorities.
To retarded without education.
India might have temporary setbacks but most of the economy is still going strong and is not dependent on the
presence or absence of a few IT companies, Unlike Pakstani IT(International Terrorism) which is the only
export from them the Indian economy does export other things and its performance is not tied to Dell or
microsoft. We have faced much worse situations and came up strong and as the recent economic data
shows we have already started to grow. We will be back to our growth levels in a couple of years
unlike pakis who go around with a well polished begging bowl.
I have reached the conclusion that we must apply the “Minimalist Approach” to solve India’s malaise and problems. Essentially that entails imploding India into more economically, politically and socially viable states that are independent. From the ashes shall rise the salvation.
and yet the indians are talking about a rocket to mars........
Take kali with you...
HINDU KALI – GODDESS OF VIOLENCE/TERRORISM
A recent report by United Press trust of India (UPI) stated that during the past three years more than 2,500 young boys and girls were sacrificed to goddess Kali in India. Another of AFP's recent reports say: hundreds of young boys and virgin girls are sacrificed every month for the deity Kali. In one case Rama Sewak hacked his eight year old son to death in broad daylight in Delhi because goddess Kali had told him he would come back to life and bring him good fortune. Bloodthirsty Kali is worshipped openly the length and breadth of India. Kali's statue stands naked astride the inanimate body of the Hindu deity Shiva, tongue stuck out with blood dripping from fang-like teeth. She holds a noose, a skull-topped staff, a blood-encrusted sword and a severed head. She is also known as Durga, Devi, Shaktima, Uma and Parvathi in other manifestations. The priest of Delhi, Kali Bari, says that a child sacrificed to Kali ensures a man the birth of a son. Human sacrifices are also made to these gods or goddesses, either to appease them or to ask favours of them.
Sometime back there was an interesting blog on India "The bubble of India has burst: Humpty Dumpty has Fallen”. We here in Haiti continue to monitor the political and cultural turmoil in India as a large percentage of our population are sugar cane slaves from India. As of now, we reiterate our view that Hindu State of India is in a precarious situation and that a geo-political implosion is imminent (if not already in process) and the need of the hour. As you will recall, India was initially broken into pieces by Arabs, Afghanis, Persians, Pakistanis, and lately by Chinese and so on. And rest assured that is not the end. India is mired in poverty and has a suppressive regime with respect to minorities. Substantial aid by the world over the years to India has failed to reverse the downward trends. We can now confirm that India has become unmanageable. If it is not imploded in a controlled manner we are afraid China will chew it up and spit it out. Therefore, we urge the UN general assembly to put this high on their agenda and vote “YES” to further breaking up India. We further propose the following areas be amalgamated with Bangladesh, Pakistan, Nepal and China. In God We Trust.
Kashmir
Bihar
Punjab
Himachal Pradesh
Uttar Pradesh
West Bengal
Uttarakhand
Rajasthan
We wish our friends in India God Speed and may the courage of Maoists bless its soul.
Dream on Paki mullah. Your economy..... Wait. You have no economy. Only thing you guys have is begging bowl. US is kind enough to support your economy. Still you are trying to back stab it by supporting Terrorist Organisation. Worry about your own country when US stop giving you money.
Where have you been... Dhaal eating bufoon? Pakistan GDP has surpassed India's !!!!! Now git !!!
LIPSTICK ON A COW: Making India (Hindustan) look pretty
There is so much one can do to make an ugly country look good.
But whatever you do in case of India is analogous to spattering some cheap lipstick on a cow.
Now one may not want to kiss this cow but sure would love some steaks!!
LMAO!!!
China's rate of growth was never sustainable. Not economically nor environmentally. If companies bet on 10+ percent growth occurring forever, that is bad planning on their part.
True, not only in China, it's the case everywhere. No leadership has the guts to tell the people that rapid growth boosts false confidence and gives a false feeling of security. Anything goes up must come down. There's nothing as sustainable growth. When the party is over, recession is an useful lesson to learn.
"No leadership has the guts to tell the people that rapid growth boosts false confidence and gives a false feeling of security."
Who the phuck told you that no leadership has the guts to tell his people about it? The Chinese leadership had already told his people not to expect to have their kwok zucked by American kwok zucking kwok zuckers as often.
Analysts have been trying to replicate China's GDP claims based on their actual use of power, materials, etc. for several years and many have come to the conclusion that the growth numbers had to have been exagerrated. As long as the party's going the charade can be sustained, but eventually reality intervenes. I think we're seeing the first stages of that now. Not to mention that much of the growth was building massive infrastructure projects (including entire cities) that sit unused, financed by Chinese banks.
I don't care about an economic slowdown in China, what I care about is the economic slowdown for the past three years in the US.
You can thank the Wall St. Bank CEO's for this and our politicians, who enabled them to fleace the US.
You can also thank our politicians for rescinding the Glass-Steagall Act, which was put in place after the Great Depression, to prevent another economic catastrophe.
Agan, thank our politicians–both parties.
You can be sure that our politicians made out like bandits too; and, when they leave office, with their life-long pensions, many of them will go work for the very lobbying firms, which have been corrupting our nation, since the administration of Ulysses S. Grant.
Some of them make up to $1 to 2 million, per year, working for these lobbying firms.
Well stated Barry G. Governments have always been corrupt to varying degrees. It has always been an insider's game and always will be. But the fleecing of the economy that has taken place over the last ten years is truly unprecedented, by many magnitudes. We have an incredibly righteous government (Democrat or Republican, doesnt matter) that spouts mantra which it fully well knows is just designed to win votes and keep the poor dumb workers working for their pittance. All the while, they negotiate huge profits for themselves, their friend's companies (which in turn pay them back later with cushy 7 figure jobs). We decry the corruption of countries like Russia, but we every bit as corrupt. Our corruption is just sanitized by policy and process. But it is possible to take things too far – social collapse and resulting anarchy happen. And they can happen here on a grand scale if enough people are pushed far enough. But they are already happening on a more insidious level in very real, tangible ways. Rising crime and other growing social problems which will tend to be ignored by the very system that created them, are already taking a major toll. Who knows, maybe it will never change and the haves will always get away with fleecing the system, but failure is possible.
You can also thank the money grubbers who packed up American industry and sent it to China, for which, in return, American markets are able to provide a bunch of cheap, i.e. junk, Chinese products that last about five minutes under actual use. These same financial intellectuals would have China building American bridges and electrical generation stations which I am supposed to believe will keep America running at peak efficiency well into the future? Just wait until the power grid fails completely during the Super Bowl, thanks to cheap Chinese manufacturing.
At least I can take comfort knowing that not all Americans have been brainwashed into drooling political tools for the right or left.....if only more people had the ability to think for themselves. I think one of the biggest problems we have is the corporate influence in governement. We have far too many people who flip back and forth between governement agencies like the FDA and the EPA and the companies they actually reperesent like Monsanto, Halliburton, Phizer, etc..... We have a government of the corporations, by the corporations , for the corporations. "we the people" are getting royally hosed.
You can thank our worthless President, Obama, for that.
Please stop being a brainwashed tool. Both sides are to blame....every president from Obama to Nixon at the very least are to blame. Every politician who has ever "served" in the house or senate in the last 50 years is to blame. You do not help the country at all with your narrow mindedness.
I'm worried about China's ability to keep funding our deficit with Treasury bond purchases – indefinitely.
The article was trying to point out how China's slowdown can cause layoffs in America.
but the slowdown in china has a ripple effect in certain parts of most nations around the world. so an economic slowdown in china results in a slight slowdown everywhere including here...though it probably wont be noticable considering the state we are already in.
unless your a coal miner..........of course who knows how much this will ripple and what else it will affect
If all the jobs go to china,does anybody realize they will be the only ones buying their product ?
Ya cant drain our jobs away and STILL expect us to buy anything other than necessities.
Can't they still have their kwok zucked by you?
I'm not into that but since you thought it up,maybe thats what you like.
Will you be 50/50 about swallowing kum too? If you are, how many mouthful will satisfy your kwok zucking mouth?
This is good in my view, I don't care what folks say about how they think a Rising China is good for the world, it's not, in the end we'll be much better off if they hit a major recession. The bottom line is, China is a manufacturing society that thrives on stealing foreign technology, replicating it cheaply and reselling it... they are the biggest contributer to world wide intellectual property piracy... In other words for what they do for the economy by providing a place of mass production for the world, they also do as much damage by stealing jobs from those economies and stealing intellectual property to sell on the world market thereby destroying the very markets that went to China in the first place... This is not a country the world should be relying on for economic stability... Hopefully their downfall will result in the world recognizing these facts and learning to deal with China in a more responsible manner.. Otherwise we will see an economy in the future that will crash tremendously... Cheap goods are great until the majority of folks can't even afford those cheap goods because China stole their jobs to create them...
China is also still a communist nation, with ideology fundamentally opposite that of America's. The U.S. should be letting China rot until such time as it gets a democratic government and free society.
Dick head, whether China is still a communist country or not is none of your phucking business. You can erect for Oba Mao or the Mormon's Moron during the presidential erection and no Chinese will give a phuck.
Smart people made money from China's boom years & are now pulling out to diversify. 10% growth is not sustainable but it is profitable in the short term.
This is just the beginning. The main cause is from the labor market shifted from everywhere in Europe and US to China. All of the fundamental industrial assembly and technical jobs have been offshore to China. This causes a big problem of unemployment and cascaded to every other corners of economy in Europe and US. If this job distribution is not resolved correctly, the unemployment continues its course to collapse Europe and US inevitably.
I'm wondering how many people in the US would agree this (China's slowdown) is a bad thing.
Americans don't care. As long as the next iphone comes their way they'll be happy little sheep
Let me count the way that American care about China's economy.
really?....speak for yourself.
i dont care about you voicing your opinion but please dont include every American in your statement. you dont know me or my family or what we care about so how can you say that?
"Experimental Democracy" has failed in India. An experiment that was being shoved down India's throat by western countries too eager to propagate their own values on a country that was trying to decolonize itself while trying to shed the communist skin of being a Soviet ally. India was thus trapped. What has become evident now is that this "Experimental Democracy" has marginalized the country. The marginalized groups of the country – Dalits and ‘backward’ castes/classes, indigenous ‘tribal’ people and religious minorities have been disenfranchised. "The belief that corruption is the important issue in the country is shared only by the minority living in urban areas and towns who have been beneficiaries of economic liberalization policies mandated by western countries. The most important challenges of Indian society remain as follows: justice, social and economic equality and equal access to certain standards of life for all Indians. “While India seems too eager to please its western masters and put on a progressive and softer face for CNN for public consumption, people see through it. The consequences of this "Band – Aid" approach will be brutal for India geo-politically when it realizes that the GDP statistics that it has been relying to gage its progress has not amounted to much in the long run. The western nations will siphon this Indian productivity into its coffers.
Hsao Min Sing, are you stupid? Democracy isn't why India is struggling. India is struggling because it is overpopulated and is only just beginning to enter the modern world. The same could be said of China not too long ago. China is only thriving today because it adopted many of the Free Market ideas from democracy. China has struggled under Communism. You haven't invented ANYTHING to help the world since becoming a Communist country because Communism does not allow for free thought and free exchnage of ideas. Communism is the biggest problem with China... China will likely fall because of their communist Government. I expect revolution in China by the end of this century... People will not be treated as slaves forever.
Please don't compare China with India. India is a pice of sh!t.
India is struggling because it is overpopulated? Are you sure? Like China is any less overpopulated? I see many Chinese companies are among the most vibrant companies in the world. Their QQ social network rivals Facebook in memberships. I think your authority sounding description of China is really a little bit too far from the reality there.
Strongly agree! please don't use India compare with China, India should compares with European country like England because England was the one who told your mama territory before, so don't come and bit like crazy dog.
thank you
INDIA: Between two Deities: KALI & PANCHALI
The problem with India is that is built on a system of cultural and societal values based on Hinduism which is a cult. Nations built on a cult seldom survive in the long run. Now just take a look at these two Hindu goddesses and the destruction and lack of morality they represent.
Goddess Kali's statue stands naked astride the inanimate body of the Hindu deity Shiva, tongue stuck out with blood dripping from fang-like teeth. She holds a noose, a skull-topped staff, a blood-encrusted sword and a severed head. Disgusting, to say the least. Would you want your kids growing up with such inspiration?
Meanwhile, goddess Panchali was married to five brothers. Which one would become the legitimate father of his child should she have one? Dr Charles (renowned author and an authority on India) says that instances of incest are common in Hindu scriptures. Decadent ! Immoral !
Talk about being between a b!tch and tramp!!
The Aghori or Aghouri is a Hindu cult that is considered to have split off from the Kapalika order in the fourteenth century AD. They have cannibalistic rituals. The streets of northern Indian cities are littered with followers of this cult carrying a kapala, which is a cup made from a skull! These bizarre people will eat anything from rotten food to animal faeces. In order to achieve the highest citadel of enlightenment, the Aghori will perform horrendously crude rituals. The finality of their rituals is attained from eating the decaying flesh of a human.
China is the next and the only hope left for this world. The existing paradigm has failed. Poverty, schisms, conflicts, democratic demise is prevalent and the world is a divided place. We need change. Change from status quo. Change from the UN system. Change from current superpower imbalance and ineffectiveness. In this context, everything else becomes redundant and irrelevant. Whether China is masculine or feminine or whose daughter is in Harvard or Penn State etc. is of minimal importance. What is of importance is the fact that China has come a long way in the past 15 years. The system works: the economic model is proven, the political system clicks, social structure is progressive though not perfect. Let us give them a chance and see what they can do for us. Let us celebrate their arrival and give them kudos for what they have achieved so far. Most importantly, let’s hope and pray they continue to bless us with their vision and passion. In God We Trust.
China's economic model is not proven. China has failed to create a real middle class economy. The average Chinese worker has to work far more hours with far less pay creating sup par quality products. This is not a sustainable economic model. It works in the short term, but in long term it will have significant disadvantages for the average Chinese worker. They will become slaves, and if they demand more from their employers their own government will crush them. I agree with some other comments on this article that China is probably headed for full scale revolution if things don't improve more rapidly for China. What happens to the rest of the world economy if the one and only manufacture of everything goes bust? We have created a massive one point of failure economic system that has no redundancy (back up plan).
"India's economy: The tiger that's actually an elephant
Investors have been disappointed by India's slowing growth, and even more sheen came off last week courtesy of S&P's downgrade. Panelists at this Global Conference session on India (full video available here) agreed that the move was justified by the macro picture.
India's coalition politics may slow reforms, said Apollo's Sanjay Patel, especially since many poor voters are not educated. "Tiger is the wrong word," he said, arguing that a lumbering elephant is a better analogy. Growth will be constrained by the complexities of its democracy."
Dont forget the US is in Debt with china for trillions. IF they need money they will be coming for it, doesnt matter if the US can pay or not.
Why do people still try this tired argument? If i lend a friend a hundred bucks he is depending on me, If i loan him 10's of thousands of dollars I am relying on him... That's how debt works, at some point, if you lend out much of your wealth you're in their pocket not the other way around... The US is not in a bad position... If China asked for every last dime of the money we owe them right now, we could simply say no... What's China going to do about it? Start a war with the folks that pay their country's bills? Don't forget dude, China's exports to the US are the reason the Chinese have even risen this last half of a century... Without us they cannot survive... Heck, the only reason they are able to feed their people is because of the Midwest... They would literally starve by the Millions without us... It's so much more complicated than folks like you lead on.
China is not coming after us for what we owe it. The concern is if we don't get our deficit under control, they won't keep buying the new debt. Obama's ability to run trillion-dollar annual deficits in perpetuity (which is what his fiscal plan shows) is contingent upon China providing the debt to fund them, every year from now on.
No worry,China will have plenty of way when the time come, and world economy is much complicated than your childlike mind think it would be
Right. We should continue borrowing money from China to buy more products from China. China only gets A) interest on the loans and B) profits from the products we buy. What dummies they are!
There is no problem. They can come and get it if they want. We have a lot of paper to print the money out.
China set 8% as the minimum needed continuing economic growth target needed to maintain social order in China. It is interesting to see the official figures being reported 3 years later for the first time below that target. How are the figures generated and by whom? They could be reported lower purposefully to pressure commodity prices down globallly based on China's weight in the food chain. How transparent is the process and how easy to fudge are the numbers?
This near religious obsession wtih growth has no basis in a finite world. Compound growth cannot continue as it has been, there are not enough resources to sustain it. For example- let's predict 5 % growth for China for the next 20 years. Take your calculator out and it comes to China growing its economy 2.7 times. Think about China devouring 2.7 times the energy and resources it does now. Could the world sustain this? No.
When US is in recession, Europe is deeply submerged into austerity sh...t, Chinese economy is slowing down a little bit.
This is how western observers are trying to make themselves feel better: just saying something bad about China.
Maybe now folks will understand that if there's no middle class in America to maintain the US as the world's largest consumer then the global market as well as the US economy will suffer.
the souls and lives of men have become a global commodity to be trading on the floor at goldman-sachs! screw china, what about the american working poor?
Buy American!
Sure, I will buy some young and beautiful.
Jack 3 the kwok head, you should take a trip to Bestbuy, take a good phucking look and you will know that America is so useless, it can't even make a TV that people want. What is left that is still American made are BS artists and kwok zucking kwok zuckers such as you.
Although I am what one can truly say an economic illiterate, I don't see how the U.S. can lose with the Chinese economy slowing down. If they cease to buy coal, we can certainly find domestic a use for it! It would have been ill-advised to lay off coalminers! I would use some coal to power the trains, as was the case in the past. Gasoline can also be extracted from coal, as did the Germans in World War II. This would save us on imported oil. What else? Couldn't we produce at home advanced coal ovens to heat our homes and power electric plants? With modern technology and advances, coal can be transformed into a precious source of energy. And the needs for energy will only grow in the decades to come.
Rather than panicking because "China will no longer buy from us", our Congress ought to create a Strategic Coal Reserve just like it did with petroleum! Once the reserve is there, the Americans, who are very ingenious, will certainly find use for it in due time! We never really know what the future will bring. May be that another country like China emerges again with powerful demand. Then we can sell the coal at better price. Or we can use it ourselves if the manufacturing picks up.
I think you're correct. Coal is an amazing resource. Future generations will probably say " can you believe they actually used to BURN coal!" It will be that valuable.
Congratulation Ameica, your wish to see China fail came true!
They are all worthless and both parties are involved in the fleecing of America.
Gee, who's going to loan us money if China slows down? Oh, the privately owned Federal Reserve System can just print more fiat money. Problem solved. Or maybe, America is tapped out on buying all that China stuff. Or maybe, Europe is facing bankruptcy. Going to get interesting, soon.
Mark my words, something BIG is going to happen. With this FUBAR economic situation that the WORLD, not just the US, has gotten itself into, I wouldn't be surprised one bit if a global finacial collapse is at hand. And if that happens, there will be only chaos. Looters, wars, famine, the works. The government will not be there to protect you. I'd say the best course of action is to prepare for the worst and stock up for the long haul. Food, water, clothing, ammo, whatever can keep your boat afloat..
Well author, congrats at least you're not chanting the mantra that "China is going to fall because it's communist" or something equally as stupid. And you're rational enough to see it as a bad thing.
Though.... CNN =/= rational!!!
The West has underestimated the importance of China's economy – to China. Over the last 2 decades, China have grown its economic pie to a level unseen before. This new high pie is intended to shield China from any major global economic crisis in the future. It can create jobs and improve infrastrucutres.
In a major global crisis, China can and will depend on its one over billion local consumption to sustain its economic growth. China can now survive without America if it wishes to.
Economies based primarily on low labor cost are doomed for obvious reasons.
The NEXT economic boom will be based on (next to) NO labor costs.
THAT will be a troublesome thing for money-people, for money will NO LONGER be KING ! ! !
Australia is another example. It used to be called the “lucky country,” but this past week it recorded its biggest trade deficit in four years. Why? Prices of iron ore and coal are sharply down because of slowing Chinese demand.
---------
1) The deficit partly is because Australia's import from China is growing. Chinese export is becoming stronger. Australia is still a lucky country.
2) It is because the price of iron ore is declining. (Ceramic revolution: ceramic production is replacing steel goods; such as kitchen knife and some steel using; soon ceramic engine will come. Now the US (/English) media is backward?) Mainland China's import on iron ore is reducing on price not tone.
3) Mainland China's electric cars and electric motorcycles are advanced. It is planning some years later most nuclear power stations will be constructed. Within 3 years Mainland China will construct high speed (electric) rail and urban (electric) rail system enthusiastically again. Growth rate reduction on oil consuming does not mean economic slow.
[Facts and great rising]
Europe is declining. The US is one the eve (about 2019) of big declining. China is on the eve (about 2019) of big rise. 7% growth rate is better and sustainable in the long term. Haste brings no success. Rest is necessary for long term running.
Now Mainland China has a bigger export than the US, India and Brazil; and the gaps are expanding. Chinese world (Mainland + ROC Taiwan + Hong Kong + Macao + Singapore + Malaysian Chinese community + overseas Chinese) are all growing and progressing, and they are moving to unity gradually.
In about 2025, China will surpass the US on GDP and military, in 2050 China will be more than double than the US on GDP; it is destiny. The declining Europe and enormous US Federal debt is threatening and will threat the world, but China will be the main engine for world growing and progress.
Trade with China is a whopping 2% of US GDP. Trade of all forms is less than 20% of the US GDP. The US still has a remarkably insular economy. More than 80% of what we buy is made here, food, refined fuels, chemicals, housing, a large proportion of our cars, medical equipment, furniture and the list goes on. Imports are only important among consumer goods, but there are is no shortage of countries itching to take Chinas place in the US market if China fails. But Chinas failure will have little impact on the US economy. The press is over wrought with the impending collapse of the Chinese economy. Yes, it is likely coming, but it won't be noticed much here.
With 14 trillion debt and growing. The only one crashing is the US.... You need to take some real math courses! didn't know the education system was this bad in the US.
Our 200 hundred year long glorious history proved we Americans are still successful and thrive without China. In fact, we Americans do everything better without China because all China does is to steal everything from us. China is the biggest thief in the world.
& in those 200 hundred years, American caused more suffering than any other, with slavery, prejudice wars, discrimination, etc...! A 200 year old brat should learn to respect the REST of the WORLD which is much older than it. Blah, blah,blah, you're a mindless drone, China have the second biggest amount of patents approved each year. The ignorant American way, call others a cheater/thief/ degrading slur when you can't win at the game, loser.
guess you would have been happier under hitler or stalin or any one of the many would- be world rulers,who exactly is the mindless drone? you have no understanding of world history and if by chance you do,you are a deliberate fool.
This article is rubbish.
We Americans can survive and thrive without China.
In fact, China manipulates their currency to delay and destroy our economy. China is the biggest thief in the world.
We Americans don't need China to improve our economy. China steals our jobs, steals our intellectual property and wants to replace the US dollar by China Yuan as the world's main reseve currency. China is not our friend, China is our enemy.
& you're a caveman. Stay in your isolated kingdom of arrogance and ignorance. No one wants you, especially China anyways!
You shouldn't call yourself American when in fact you are just "Trash". Please crawl back to your mother's smelly kunt and stay there.
How can a country of over US$3 trillion in solid foreign currency collapse? I think Americans at large need to be realistic with the real problem – which is America!
I cant believe that American netizens are still talking like US doesnt have any economic or financial problem – and distracting their own financial fiscal cliff by pointing their fingers at China that the Chinese economy is going to collapse. Where are the statistics to support this American myth about China's economy? Many American so called investments analysts have been predicting China's economy hard landing – since 2000! It never happened and there is no hard landing like CNBC an other US mad medias have been telling Americans audiences – and the more often they repeat this myth, it sinks into the empty heads who now believe its real !
Get real man, dont be so myopic about your own precarious situation. In fact I believe USA is at the verge of going into a recession, and followed by at least 10 years of deep recession – if nothing is done to settle the US national debts which will surely climb to US$25 trillion by 2020. When that happens its game over for America. Depression will follow because by then the world will abandon the US$ resulting in it's value crashing to the bottom of the cliff.
America cannot afford to continue supporting its "greatest powerful country" ego, because American is BROKE! The onlty way US survives is by printing more money to sell to the rest of the world who still trust in the US$. That trust will disappear at the first sign of a US deep recession.
Never read China naively and wrongly, without confirming the facts, like what many US medias are doing. China's slowdown is deliberate, and economically tactical.
To me, it's like China wants to sneeze so that the rest of the world will be in bed with a fever
India has the largest middle-class population. It has production units supporting mainly internal consumption. It exports knowledge based services which Chinese could not copy for last 2 decades. So, Indian economy is safe.
In the changing world, India and US economy are to collaborate and seek markets within – expelling China.
On the other hand Indians should elect Narendra Modi as PM.
This is the remedy.
Seems like India is falling apart at the seams. First, hundreds of sick left burning in a hospital fire, then hundreds dead drinking some hindu moonshine concoction, followed by massive power blackouts, nuclear accident and now this. Poverty is rampant, societal values have collapsed; inflation is in the clouds while the rupee is in the toilet. This economic and political model has failed. The moment US pulls out of Afghanistan, it iwll be all over for India. No more handouts by American taxpayers.
Chinese Government passes a new Law, to audit China's own State business around the World and protecting Chinese around the Globe.
))))))))))))))))))))))))))))))))))
China already experienced and entered into the Worldwide market. The only thing China will loose is, its fast growth and some inflation.
More or less, China can not afford to go back, what it was 50 years ago.
Recently, Chinese Government visited Afghanistan and discussed investments and economic developments. What was the West reaction....??
On the expenses of the West's,
Chinese looks good and invests?
China's GDP is slowing dramatically, and that will have effects on other countries
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This is an immoral big mistake. Who did it? It is cheating the US citizens, and is misleading the US strategy.
Correction: China's GDP growth is far higher than the US; the terrible big US Federal debt is threatening the world recovery.
BRICS countries are growing and progressing. Unity is the best policy for BRICS.
India had been invaded by immoral Britain brutally. (Britain also made about 10 million African black slaves, and tortured 3 million to die in British ships.) Lots of Indian cultural sites were destroyed intentionally by Britain for ruining nationalism of India.
Rifts were also made by Britain intentionally between various ethnic groups of India (especially Hindus and Muslims), and between India and her neighboring countries.
Now Asia is more and more important. India and other Asian countries should unite together for peace and prosperity.
Big parts of Human dignity and Self respect are missing in this society.
Indian
never trust an indian
INDIA:::: Some Alarming Statistics: (Source: UNDP)
• 1/3rd world’s poor is in India. It also has a higher proportion of its population living on less than $ 2 per day than even sub-Saharan Africa.
• 828 million people or 75.6% of the Indian population is living below $2 a day. 42% of the population is living below the new international poverty line.
• 33% of the global poor are Indians. Sub-Saharan Africa considered the world’s poorest region is better than India.
• 41.8% of the rural population survive with monthly per capita consumption expenditure of Rs447 ($7)on essential necessities like food, fuel, light and clothing.
HERE IS THE BEEF !!
THE ECONOMIC SUBJUGATION OF INDIA & The Taming of Hindus!!!
The one most successful aspect of recent American foreign policy has been the conquest of India without firing a bullet. That is the beauty of capitalism used as a Trojan Horse! Economic victory! Give them a taste of steak and they will never settle for hamburgers again. USA now owns India Inc. not only economically but also militarily as economic subjugation ultimately leads to military domination.
steak and hamburger analogy while talking about india,i hope you did that on purpose,lol
May be they dont like to buy fake product produced by neo-nazi.boycott made in China.
china slowdown translates to lower oil prices and fareed cries for venezuela and the arab countries,please. the biggest effect will be china starting a regional conflict to divert the populations attention from the economic downturn. i believe GM is still moving some production that way though,stimulus dollars at work..........
india has a caste system and a billion people. the vast majority will be poor until the country moves into the 21st century
Wonder if China will look for a country with loads of available labor at cheap rates and low benefits where the govt doesn't do anything, like the US?
Didn't Zakaria write an article not that long ago that everyone should acknowledge China's dominance as a superpower based on the numbers when they were growing? Most people said they couldn't sustain that growth. I for one will not be sad to see it slow up, China's rise is a nightmare for the environment and the countries they were "helping". They are bribing and looting countries of their resources.
Mona, what you really should do is stuff your smelly kunt with a big black dudo and moan.
Money is created artificially when someone borrows money. That borrowing might be when you buy a house or when the government spends more than it taxes. That is how the world's money supply is expanded – someone takes on debt. Money is created to satisfy that debt and the world's economy grows as long as that debt is not paid back.
In the US, we take on a lot of debt – $16 trillion is federal debt, $14 trillion is mortgage debt, etc. That debt created a lot of money. So why don't we have $30 trillion? (We have $10 trillion) Well, part of the reason is that $1 of debt doesn't create $1 of new money – the system isn't that efficient. But the other reason is that we leak money – sending money to China (and elswehwere) to pay for all the cheap stuff we buy. The trade deficit since 1980 amounts to $10 trillion.
So lets think of it this way. In the past 32 years, we in the US have taken on about $27 trillion (there was already about $3 trillion in the system back in 1980) in debt to fund the world's economic expansion. That debt created about $18.5 trillion (taking out money that already existed) and of that money, we sent $10 trillion overseas. That $10 trillion has done wonders for those receiving countries, fuelding their spectacular growth. Meanwhile, we're still holding all the debt that created that money. If we pay the debt down, we get into trouble. We don't have enough money in our country to pay off the debt. Duh! We're a country of greedy fools.
It doesn't matter if China is "slowing" down from 10 to 7 percent. Fact is that China is still on its best way to become the dominant country this century. It's just a matter of time. I guess another 10-20 years.
The most shocking aspect of the Hindu Cult "Aghori" life in India is their cannibalism. Dead bodies that are found floating in the river are gathered up and meditated on. The limbs are then removed by the Aghori and eaten raw.
Not to state the obvious here, but as many former US jobs are now in China more of us in the US can't afford to buy as many of the things they're now making over there in China. ~ Confucius says, "Shrinking middle class consumer base equals shrinking demand for middle class type goods."
China is not out of money until it has spent its last DOLLAR! Not yuan, but DOLLAR! This means that we Americans shall share their economic pain. As the Chinese spend their dollar reserves, the supply of dollars will drive down the dollar in the world market.
For the good of their own people, the Chinese government needs to let the yuan rise in value so that their prices will fall and their people will be able to afford to buy the goods that they already sweat to make. This is NOT good for Americans, of course, because over here, prices of consumer goods shall rise and supply of them shall decline.
Real wealth is not paper money. Real wealth consists of the goods and services that we produce that is available to be bought with the money we have. Thus, the Chinese workers produce real wealth. If you think that it is darn near impossible for the United States to go back to making most of its own consumer goods, you are just conceding we don't have the means to be truly productive. Hardly anybody would voluntarily pay a bureaucrat out of his/her own pocket. Why have so many Americans chosen careers in bureaucracy? We are copying the losing strategy of the old Soviet Union.
You make want to get tough with China. You may like to sneer at China. However, we Americans are in no position to get tough or sneer, not as long as we owe $1.5T to them. As you get ready to watch the VP debate, remember that neither Obama/Biden nor Romney/Ryan is going to lessen the debt owed to China.
Hopefully China's economy will tank, there will be a people's revolution, the communists will be stood against the wall and shot.
You should worry about the fact that you may have to zuck Chinese kwoks for a living instead.
China is shining even more. USA has dim light for a few years. The writer lives on Mars. It just seems his/her wish list.
I wonder why are Americans so antagonistic to China.
Because of the mass exodus of decent paying jobs to slave labor markets. Pretty simple actually.
I don't think it is that simple. I think it may be because the factory owners don't want to keep making American kwok zucking kwok zuckers such as you here in the U.S., especially when your kwok zucking skill is not that great.
Like little children in pre-school, we antagonize our way into being the "cool kids."
China's economic growth has structurally been bloated by exports and massive infrastructure building and construction. Without a recovery in exports short term and with large oversupplies in residential and commercial real estate, the transition to a consumer led recovery is a more daunting task than one might presume in a communist capitalist economy with a large people resource. A fragile consumer confidence in a society that is now social network savvy and in sharp contrast to conditions just a decade ago combined with a forthcoming new political leadership directing a government whose credibility is increasingly tarnished is reason for more caution either about the duration of the current slowdown or the amplitude of the next recovery.
It's not the Chinese people that Americans don't like,it's our businessme who sold us out for slave labor and no environmental protection agencies that we abhor and look at as national traitors to the American citizens who they abandoned.
I've gardened, canned , raise livestock , and burn wood. Not much I need from globalization.
What about that Chinese made dudo you are zucking at this moment?
What does it mean? Hopefully, a time for revolution, when the candies run out and the people's frustration spills over to the street and the communist regime is toppled. The time has come for the last bastion of communism to fall and a billion people to be free from the yokes of tyranny and oppression. A time for upheaval, pain, uncertainty, but also a time for freedom, hope, and a new destiny. Hopefully, a world where human ideals are not sacrifced by the west for profit and easy money drawn out of the emaciated hands of oppressed people. Hopefully.
A revolution can conveniently and instantly erupt in the States. The stage is like set because everyone has guns and plenty of bullets in the house.
It will make my fear come true too, I have often wondered how close America have been to a civil or racial disturbances that may result in a revolution by certain section of American society. I suppose it will all depend on the state of the Americn economy, if it collapses and the poor everywhere become desperate, and hungry – we can expect there will be shooting and robbery everywhere.
The U.S. has a far more stable political system that China. The average GDP in China is till only around 6K, so you can see the majority of the population are still not getting a slice of the pie. While we have seen the middle class lose some ground over the last five years in the U.S., it has been a steady growth for decades. This is a diffrent world then the repressive Chinese government. Why compare the two?
China's never slowing down, just on a nice vacation.
China still relies tremendously on exports, but the information shows its vulnerabilities. China's GDP is dropping simply because Europe and the U.S. can no longer afford to keep buying its junk. In the end, its these economies that have been propping up China's. I also feel that China could one day implode, considering that it does not have the most stable political system compared to other nations. China has a tremendous amount of internal conflict, between minorities and government, as well as a growing rift between the new wealthy and poor. A slowdown could amplify these diffences, and riots could result. Every Asian tiger has cooled off, but I am not sure China has the political system in place to control the aftermath.