Global Shock As Manufacturing Contracts In US And China

Global Shock As Manufacturing Contracts In US And ChinaIn the News (from The Telegraph): “Manufacturing has begun to contract in the US and China for the first time since the Lehman crisis, raising fears of a synchronized downturn in the world’s two largest economies.

“The closely-watched ISM index of US factories tumbled through the ‘boom-bust line’ of 50 to 49, far below expectations. It is the lowest since the depths of the crisis in mid-2009 and a clear sign that US budget cuts are starting to squeeze the economy.

“The news came hours after HSBC said its index for China also fell below 50, a major inflexion point for the world’s industrial workshop.

“’This is not a good moment for the world economy,’ said David Bloom, currency chief at HSBC.’ The manufacturing indices came in weaker than expected in China, Korea, India and Russia, and then we got America’s ISM.

“’We thought we had a clear picture that the US was recovering, Japan was printing money and were we’re back to happy days, and now suddenly a huge spanner has been thrown in the works.’”

My Comment: There are uncompromising laws of nature, which in any case will destroy the previous (egoistic, consumer) economy and will inevitably lead us to suffering. Feeling it, we will quickly agree to change our nature to the good connection in a united community.

Related Material:
The Global Recession Will Accelerate
China Is No Longer A Locomotive
Cities Will Die Like This…

Discussion | Share Feedback | Ask a question Comments RSS Feed