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Mapping China Contagion: The Flowchart
We know, we know, it’s all about September and "liftoff" and that "diminutive" Atlas-like superwoman Janet Yellen, who holds the fate of the EM world in her media dissent-suppressing hands.
Be that as it may, if the last two weeks have taught us anything at all (other than that a Reg FD violation is called a "scoop" when it involves Jim Cramer and Tim Cook), it’s that China quite clearly matters - and it matters quite a lot.
We’ve certainly been keen to document the various transmission channels whereby China’s economic deceleration, stock market collapse, and currency deval have translated into a commodities collapse, an emerging market meltdown, and a Black Monday replay on Wall Street, and while we acknowledge the fact that because the situation is quite fluid, a Venn diagram is probably a better way to visualize the interplay between EM carnage, the yuan devaluation, the SHCOMP collapse, FOMC confusion, and commodities carnage, the following China contagion flow chart from RBS should help to provide some clarity on why it is the market seems to suddenly cares so much about China.
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aaaaaand it's gone
The US recovery that wasn't?
Central banking as compared to central planning has the single goal of enriching bankers.
China bank run. Capital flight to USD. China not remitting dollars back to EMs. Collapse in EMs WITH runaway inflation/devaluations.
Long: one-way first class flights to US by EM leaders.
Yep, so BTFD in the Chinese market......
Fuck the Fed and Yellen!
PBoC FTW
US recovery? Isn't that more hypothetical than rainbow colored unicorns?
US has been in recession/depression since the last financial crisis if you use accurate measures of inflation
The Chapwood Index for 2014 was 9.7% and official CPI in the land of the free was only 0.8%. So the Nominal GDP of 5.6% for 2014 becomes real GDP of -4.1%.
The revised real GDP for years 2011 to 2013 worked out to -6.2%, -6.5%, -6.5% respectively.
Accurate measurement would scare the shit out of everyone in the market and will only be seen ex post facto the crash when the witch hunts begin.....
China has too many men and too few chicks.
Come on guys, don't hate the Chinese...
http://sputniknews.com/photo/20150825/1026173073.html
I stopped reading when I saw the box that says "US recovery"