Econblog Review has criticized the easy and optimistic story that China is doing great and will be the next engine of growth in an important way for the global economy. Today, Bloomberg.com supports this view in one of the first mainstream articles to take this viewpoint, in China Sees ‘Grim’ Job Market, Deeper Impact From Global Crisis. The article begins:
June 3 (Bloomberg) -- China’s government said unemployment is worsening, a quick rebound in trade is becoming less likely, and the nation is yet to feel the full effects of a global slump.
The foundations for an economic recovery aren’t solid, the State Council said in a statement on a government Web site today. Trade faces “unprecedented difficulties,” Vice Commerce Minister Zhong Shan said separately.
Commodities are selling off, as are stock markets.
More later.
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The China hype is all the more ironic, as the death of their manufacturing exports has cut their umbilicus to us. Assuming their restructuring is eventually successful, it will produce a zero-sum game of competition for resources while eliminating the reserve-recycling dynamic. On the other hand, if their current policies truly amount to digging holes and filling them up, the effect on opinion here in the west will be dire. The coverage of China has been delusional.
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