Friday, May 09, 2008
China's long export boom slowed last month as the weakness of the American economy continued to affect its biggest supplier of consumer goods
.telegraph.: China's long export boom slowed last month as the weakness of the American economy continued to affect its biggest supplier of consumer goods.
China's long export boom slowed last month as the weakness of the American economy continued to affect its biggest supplier of consumer goods
Posted by chris @ 06:59 PM (69 views) Add Comment
1 Comment
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1. Bangybongo said...
An idea for the timing of a slowdown. Shipping markets, at records, will tank within the next month. Why? Because China, already taking steps to cool its economy, has been stockpiling iron ore because it's preparing to play some serious hardball with BHP Billiton and Rio Tinto over the price of the raw material. (Annual price talks between steelmakers and Rio/BHP should have been done by now, but they're about 2 months late, BHP/Rio want at least 65% a year more than last year (plus some freight) and the Chinese want to pay less). So they've got the stockpile and if ever there was a time to slow insane construction, it's surely while the country is hosting the most high-profile international event in its history. Who wants athletes doing the Long Jump wearing a breathing mask? So commodity shipping markets, and hence delivered iron ore, coal and grain prices will tank, which will be interpreted as a a sign of a global economic slowdown by the media. While that may be ostensibly positive for inflation, banks just aren't geared for declining prices (and commodities aren't really affecting benchmark inflation indices yet). The banks are all pumping new fiat money into commodity derivatives but the derivatives are based on the price of the above commodities. Many will take hits because they won't see this coming.