China is the elephant in the room, Marc Faber told the EPCA audience
. Noting a global shift in the balance of global
economic and military power from West to East, he also
highlighted the massive increase in China’s share of global
commodity consumption. He is skeptical about GDP growth
figures for China, suggesting they may be closer to 5% per
year than 10%. Faber suggests that recent downward slides
in stock markets are more likely to be the result of concerns
about China’s economic bubble bursting rather than European
woes. “If China grows or contracts by 3%, that translates into
a huge impact, particularly in demand for commodities.” Marc Faber says -
via EPCA
