How Deep Is China’s Hole?

The graph above doesn’t explain everything as promised by the headline at Quartz but it does explain one thing pretty well:

This is what it helps explain: slowing global growth (The emerging market investment boom is kaput.); the weakening Chinese economy and currency (Cash is pouring out the middle kingdom.); the relatively strong dollar and the weakness of US exports; the movement of real estate in Vancouver, Sydney and London; the Chinese corporate foreign acquisition spree; the sharp collapse of iron prices; the surging prices of gold; and, on and on and on.

I’d say that the graph, along with the Panamanian Papers which add to the evidence, that China’s elite is getting their ill-gotten gains out of the country while they can. And they aren’t alone; Brazil’s elite is doing the same thing.

1 comment… add one
  • jan Link

    The Sheraton Hotels were recently purchased by the Chinese. Their financial interactions in buying property is also typified by full price, all cash purchase agreements — something most Americans find difficult to compete with in the housing market.

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