We saw this coming. The U.S. policy has debased the USD for some time. QE and stimulus are not working, yet they would continuously repeat it. Their purchasing power has been dwindling. The Asian mercantilist countries’ export machine would stall at some point.
We are at the early stage of global economic debacle.
Again, one has to understand the bigger picture and larger context to see what’s coming.
From MarketWatch:
The official China Federation of Logistics & Purchasing Managers’ Index eased to 52.0 from 52.9 in April, marking the slowest pace of growth in nine months.
The result was below the median forecast of 52.2 in a Reuters survey of economists.
Meanwhile, a separate PMI published by HSBC and compiled by U.K. group Markit, showed headline activity at 51.6, easing from 51.8 in April, the slowest pace of growth in 10 months.
Analysts at Credit Suisse said that the Federation’s PMI showed new orders declining at a faster pace than the slowdown in the overall reading, a sign that manufacturing activity may have already peaked in the current economic cycle.
“Actual economic activity may have cooled down faster than the headline suggests,” said Credit Suisse analysts.
http://www.marketwatch.com/story/china-manufacturing-growth-slows-further-2011-05-31
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