Sunday, December 4, 2011

A China Economic Slowdown will Cause a Commodities Slowdown

Marc Faber : I think a lot of people will care if china grows only at 5% rather than 10% or 0% in a hard landing case because China is the largest buyer of commodities in the world, and if the chinese economy slows down the demand for commodities slows down. then the economies of Brazil, Argentina,Australia everybody is affected and then they can buy less from China and then you have a downward spiral. - in CNBC 03 Dec 2011
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Marc Faber : Easing Cannot Solve the Chinese Economic Problems

Marc Faber : but let me tell you something about easing. when Mr. Bernanke became fed chairman, the S&P was at 1264. that was on February 1st, 2006. we're now at 1244. so the market is lower than it was at that time. in the meantime, gold has gone to $1,746. the easing may not mean that the economy will do particularly well. the easing can shift money into some sectors of the economy. the stock market in china may rebound, but i don't think we'll see new highs, and i think the economy will weaken because we have a very capital goods oriented economy,Capital spending and capital spending is very volatile more than consumption - in CNBC 03 Dec 2011
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Marc Faber : Obvious slowdown in the Chinese Economy & Possible hard landing

Marc Faber - CNBC Interview - 03 Dec 2011 :"Well basically the data can be manipulated, but in general I would say there is an obvious slowdown in the Chinese economy and as I pointed out in my report, I think there is a chance for a hard landing. " Says Dr. Marc Faber


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