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Page added on March 11, 2012
China: Abrupt 70% Drops in Growth, Income; Trade Balance Plunges on Crude Oil Buy-Up
China’s trade deficit hit $31.5bn in February as exports slumped, underscoring concerns about slowing global demand and cooling growth in the world’s second-largest economy.
February exports from China fell 23.6 per cent from the previous month, and rose a slower-than-expected 18.4 per cent from the previous year. The fall in exports, combined with spectacularly strong imports as China bought commodities such as crude oil and iron ore, brought the trade deficit to its highest level in years.
_FinancialTimes
The above video describes the abrupt 40% to 70% drops in growth, income, and land sales experienced by virtually all regional Chinese governments — a reflection of the deflating economic bubble within China. This data was obtained independent of the Chinese government, and as such is likely to be more reliable.
Below you will see some revealing charts, describing the radical drop in China’s trade balance caused by an apparent stockpiling of crude oil and other commodities.
…here are some truly stunning charts showing the epic collapse in the Chinese economy, which while still experiencing intermittent flashes of inflation, will have no choice but to resume easing all over again, in the process sending all commodity prices higher yet again. _ZeroHedge
China’s current trade deficit is the largest since 1989, and is reflective of a number of economic trends impinging upon China’s long term economic plan.
World commodities markets from Australia to Brazil to Africa are trembling at the thought of a significant and prolonged slowdown in Chinese demand for raw materials.
China’s buildup of its crude oil stockpiles — with its inevitable stressing of world crude markets — is even more interesting, as it suggests a multi-tiered strategic thrust on the part of the middle kingdom, using world financial markets as a proxy force.
This is not a China collapse, but rather a foretaste of what happens when there is a suggestion of an eventual auditing of the books. When the books are actually audited, even more significant adjustments will be made. But even later, in the aftermath of the auditing, there will be a reckoning.
4 Comments on "China: Abrupt 70% Drops in Growth, Income; Trade Balance Plunges on Crude Oil Buy-Up"
BillT on Mon, 12th Mar 2012 12:18 am
All this proves is that China is getting ready for the future and not worrying about numbers. Sure Europe and the US are buying less. Both are broke. In debt so deep they can never get out. China knows this and is getting rid of it’s Charmin dollars as fast as it can, buying up all the resources it can get. Buying up land, factories, and oil. Building pipelines to Russian oil and gas and Iranian oil and gas. Buying mines and farms all over the world. They are smart.
The US is buying weapons that will be useless, eventually, when they go broke and have to live on their shrinking domestic oil supply. When riots break out on American streets and the Police State comes out in armed force to crush what’s left of America’s spirit. Remember, China has trillions to spend…and American owes trillions.
dsula on Mon, 12th Mar 2012 1:23 am
It’s from zerohedge. Like kunstler. Ignore and move on. Are those guys ever right?
BillT on Mon, 12th Mar 2012 4:38 am
dsula, are you ever right? Actually, Zero Hedge is as right as anyone else. Kunstler is also right. Timing is difficult in the current turbulent world, but that does not make them wrong. Can you predict when or if Israel will attack Iran? When or if the Iranians will succeed in closing the Straight? Will the Russians take the side of Iran? Will China? Will the Euro fall apart this week, next, this year, next? Will the dollar blow up or just crumble and when?
With literally hundreds of pieces moving on the board and the moves being made by at least a dozen players, do you know what will happen tomorrow? No, you don’t. Neither do I, but if you discount part of the information coming in as not relevant, you better be correct, as YOUR life might be on the line.
beko on Mon, 12th Mar 2012 8:31 am
Billt your comments are excelent