Zerohedge: As we detailed a week ago, Chinese borrowers are set to take out some CNY7.6 trillion in new loans this year just to pay interest on their existing borrowings. This comes as over half of commodities companies can’t service their debt with existing cash flow.
The Shanghai Composite is still up 32% after falling over 5% today.
http://www.bloomberg.com/quote/SHCOMP:IND
Copper is in the toilet.
http://web.tmxmoney.com/futures-quote.php?qm_page=59349&qm_symbol=/HG:CMX
Oil is down 50% this year.
http://web.tmxmoney.com/futures-quote.php?qm_page=97282&qm_symbol=/CL:NMX
Forget about China. Canada is going to have an awful year in 2016 because the various governments are increasing taxes during a pullback in commodity prices and Canada is a commodities trading country. Falling revenues and rising taxes.
Saw a video earlier of a ship’s anchor chain with a bad braking system – clunk clunk, fits and starts, faster and faster, creaks and groans, smoke and flames shooting out – until the whole chain whizzes out and bang! Gone.
Like that.
Just as Japanese banks have been in a perpetual state of bankruptcies for the last 20 years, Chinese companies are, no doubt, equally as insolvent. I suspect any supposed solvency of Chinese business is based on worthless paper and imaginary inventory. As the Chinese government is a co-conspirator, we will never know the full story until the round eye has been stripped of his cash.
Its never good to base your economy on Walmart sales.
F it let the debt elevator rise.As they used to say to infinity and beyond.know body’s gonna pay it anyhow.
why kiddies, sounds just like the ol’ Death Spiral.
John, I think it is a giant flushing sound.