China factory sector shrinks most in 32 months

Comments (11)
Intriped wrote:

World wide aesthetic product consumption is finally hitting it’s peak. American families in particular will do with what they have as long as it is serviceable. Trendy gadgets are the killer for family budgets and can no longer be sustained with as broke as people really are. Food, housing, transport and health costs seem to be taking a front and center. Better to live comfortable than to live trendy and super poor.

Nov 22, 2011 10:18pm EST  --  Report as abuse
CrisisMaven wrote:

China will go down in an epic crash far greater than the former Soviet Union:
http://crisismaven.wordpress.com/2010/02/13/bloom-of-doom-vi-will-china-survive-the-crisis/

Nov 23, 2011 5:20am EST  --  Report as abuse
russinmaine wrote:

CrisisMaven, I wouldn’t hold my breath or bet the farm on it if I were you. Unlike our situation, if they find themselves in a financial bind they can always call in the debt that we owe them. Their bills are paid and we…..well I think the rest is pretty self explanatory. Never underestimate your adversary, especially in a situation where they control their population and have a long, long history of overcoming problems.

Nov 23, 2011 6:01am EST  --  Report as abuse
breezinthru wrote:

I agree with you to a degree but the Chinese have an equally impressive record of creating problems to be overcome.

Nov 23, 2011 7:02am EST  --  Report as abuse
exposewumao wrote:

Now if Americans would boycott the commercialism of a holiday called Christmas and instead spend it on good food, drink and time with friends and family we would really see their factory sector shrink. I for one am not buying one present all I am buying is lots of good food and drink to eat, drink and be merry this Christmas, I am done supporting China’s economy when we are hurting so bad as a country.

Nov 23, 2011 7:58am EST  --  Report as abuse
fritzk wrote:

it is funny to read the economic writers at reuters. They have all the facts and figures and sources available from a state of the art news gathering machine and no compliment for it. It’s like trying to watch a twelve year old who has never once been behind the wheel of a car try to operate an F1 racer at speed.
imagine what the reuters headline would be if the US were ‘saddled’ with 8% growth in factory output? In China that’s a hard landing, in the US it’s hard to imagine what superlative reuters would come up with when improvements in negative numbers in the US signal recovery to the reuters kids. thanks for the laughs.

Nov 23, 2011 8:06am EST  --  Report as abuse
illinoistom wrote:

Forget European debt as the Chinese bubble is the real problem.

Nov 23, 2011 10:04am EST  --  Report as abuse
Doc00001 wrote:

The decline in Chinese manufacturing has been easily anticipated. When the largest consumer market (America) in the world feels the crunch, eventually people begin to think a little better. Our genius politicians have ignored our pleas for economic justice for quite a few years and now they have another problem to botch up trying to repair. They all remind me of the comical “monkey trap”. Where the jar’s opening is large enough to allow an empty hand inside but too small to allow a full hand out. Our over class is ridiculous as they refuse to let go of the gold inside the jar and relegate themselves to life with a jar attached to their arm.

Nov 23, 2011 10:39am EST  --  Report as abuse
CrisisMaven wrote:

Hi russinmaine,
“they can always call in the debt that we owe them” – oh, well, I am looking forward to that. Like I call the neighbour’s dog – it never cometh …

Nov 23, 2011 10:48am EST  --  Report as abuse

China planned for growth to be 9.0% during the 12th Five Year Plan (2011-2015). It will develop the central and western provinces to raise them to the national level. Internal growth has only fallen to 9.4% for 2011, and it may need the standard upward revision to account for workers who needn’t report annual income below 3,500 yuan (up from 2,000 yuan or 75% in 2010). HSBC in Hong Kong may have too much focus on exports. China planned to reduce its surplusses by 20%, but natural disasters in trade partners reduced its surplusses by only 15%. China must face the hardship of a trade SURPLUS in 2011 that is a mere 85% of its 2010 SURPLUS. If China is pushing harder to reduce its surplus by 20% by the end of 2011 to refocus on internal growth, that explains China’s declining manufacturing. Total resources remain, in some ways, relatively constant, so allocation to domestic development or foreign trade will lower one and raise the other. There have also been fears of a housing bubble, but China plans to build 46 million low-cost housing units, enough for 138 million Chinese or 10% of its people, and 10 million for 30 million will be complete by 12-31-2011. China has also imposed ownership limits of 1, 2, or 3 homes per city to end speculation that drives up prices without any economic need. Only the excessively greedy will suffer. Home prices have slowed, stopped, or reversed growth in the 70 biggest cities, easing inflation without a disastrous collapse. China’s foreign exchange reserves, continuing trade surplusses, and domestic budget surplusses should give China close to $4 trillion in cash to weather the growing financial crisis that threatens the EU and the US with recession or depression either of which could last a decade.

Nov 23, 2011 12:07pm EST  --  Report as abuse
CrisisMaven wrote:

“China has also imposed ownership limits of 1, 2, or 3 homes per city to end speculation that drives up prices without any economic need.” Richt – that’s those people who think they can distinguish between good and bad speculation. They always failed throughout history. Chinese couples now already fake divorce certificates to be able to buy double as many houses since these measures. China will fail miserably and crash horrendously, mark my words.

Nov 23, 2011 3:19pm EST  --  Report as abuse
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