The global economy is losing its last shock absorber

[marmar]

(Business Insider) China's economy is in trouble.

Last week's surprise devaluation of the Chinese currency, the yuan, has brought the world's second-biggest economy into focus, and it's not a pretty picture.

Growth is slowing, inflation is very low, the country's demographics mean its workforce will soon stop growing. It has also failed to put a stop to its considerable debt accumulation in recent years.

But according to Stephen King, outgoing chief economist at HSBC, that way of telling the story ignores China's role as the heavy-lifter in the global recovery — the economy that's been able to take a beating on behalf of the rest of the world.

King calls China "the shock absorber for the global economy, a punch bag seemingly able to soak up the recessionary blows that would otherwise have totally derailed global growth." .................(more)

Read more: http://uk.businessinsider.com/hsbcs-stephen-king-the-global-economy-is-losing-its-last-shock-absorber-2015-8#ixzz3jE1cltl6

[Hydra]

1. Spomething has to give in the global "great game"

The elite have been playing games with everyone's money...and their absurd ideas on what our priorities should be may well destroy us all.