Tuesday, 28 July 2015

“China has entered the bust phase”

July 24 -- Asianomics Group Deputy Chief Economist Sharmila Whelan discusses the economy in China, outlook for the country’s equities and their impact on commodities. She speaks with Francine Lacqua and Manus Cranny on Bloomberg Television’s “The Pulse.”


Eric Sprott:  “I don’t think there is any doubt about the world economy rolling over.  China has been the major buyer of all products and they’re not holding it together here.  They’ve experienced a market crash already, with these huge amounts of debts that the Chinese have taken.  The Chinese have created more debt than anybody.  Their debt outstanding has increased remarkably….  The debt is accelerating way faster than the economy is growing.  And the economy is the engine that produces the earnings to pay the interest on the debt.  Well, if the engine starts misfiring, who is going to pay the interest and how do you pay off the principal?”
Read: Billionaire Eric Sprott Issues One Of The Most Dire Warnings Of 2015

[Hat tip Hugh Pavletich]

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