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The August preliminary HSBC PMI for China falls to a 9-month low of 47.8 from July's final read...

The August preliminary HSBC PMI for China falls to a 9-month low of 47.8 from July's final read of 49.3. New orders and new export orders both contracted at a faster rate than July, while inventories rose at a speedier pace.
Comments (11)
  • J 457
    , contributor
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    Hard landing is here. SPX next to break down.
    22 Aug 2012, 10:49 PM Reply Like
  • anonymous#12
    , contributor
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    LOL!! Where is the break down??
    23 Aug 2012, 08:37 AM Reply Like
  • vorgriff
    , contributor
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    No way! Nothing that a new Draghi's statement could not fix.
    22 Aug 2012, 11:14 PM Reply Like
  • Guardian3981
    , contributor
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    I like how everyone is saying China needs to do more easing. For what? To build more worlds largest malls with 97% vacancy.

     

    China is sucking up commodities that are being wasted, there is so much extra iron ore and steel that they have no where to store it.

     

    All of that energy spent on building useless things could be diverted to something the economy would naturally need, that is improving food technology.

     

    That's the problem with easing, it causes bubbles in areas we don't need while keeping capital from areas we do need.

     

    From a demographics standpoint the worlds population growth boom is slowing. We need to begin diverting resources from fueling growth to sustaining life. Health care, food, water, electricity, etc.
    22 Aug 2012, 11:40 PM Reply Like
  • J 457
    , contributor
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    My thoughts as well. Natural resources are not infinite. There will be a time in the few decades when these natural resources will become the main priority of every nation, not for growth as much as for pure survival.
    23 Aug 2012, 12:02 AM Reply Like
  • schatzl
    , contributor
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    Share the sentiment and I can't remove that nagging feeling that QE and ZIRP have "financialized" commodities (i.e. financial institutions looking for alternative ways of earning money have discovered commodity speculation), thereby haemorrhaging growth and even leading to hunger in the third world by exacerbating the drought and bio fuel contributors.
    23 Aug 2012, 02:47 AM Reply Like
  • Michael Clark
    , contributor
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    There's only one door open: higher interest rates, the destruction of our debt, and depression. Three is not other solution. More easing, more expansion, will do nothing but push on a string.

     

    Affluence is a stage. It is not a perpetual stage; it comes and it goes. And then it comes back again. Look at history. No where in history is there an example of perpetual growth. There is growth and rest (deflation); growth and rest (germination, gestation).

     

    The longer we try to deny this truth the more painful our resolution of our problems becomes. Of course, the government doesn't want to face this, because it means they all lose their jobs (either through election of a new perspective, or through revolution).
    23 Aug 2012, 03:09 AM Reply Like
  • David Urban
    , contributor
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    This report is bad for the market. August is typically when the Holiday orders are placed and New Export Order weakness is a bad sign.
    23 Aug 2012, 01:37 AM Reply Like
  • Michael Clark
    , contributor
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    Bad for the markets? The markets have their own atmosphere. The markets aren't really connected to reality. The markets are money pushing money, news pushing news, special interests and central banks pushing money even harder.

     

    This report shows how back the economy is. China's number one ship-building company has not had one order this year. How long can the market ignore reality? How long can individual investors ignore reality? The choice is stark: ignore reality; or face the Dragon. Who wants the face the Dragon?
    23 Aug 2012, 03:14 AM Reply Like
  • Michael Clark
    , contributor
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    BAnk of Japan warns that China is where Japan was in 1989. Since 1989, Japanese stocks still off 75%; Tokyo real estate off 80%. That's what happens when you take out more loans to cover up the bad loans you took out at the top of a housing bubble. Sound familiar? US heading for a similar result?

     

    http://bit.ly/SnTKQi
    23 Aug 2012, 03:18 AM Reply Like
  • Guardian3981
    , contributor
    Comments (1865) | Send Message
     
    But there is a huge difference between China and Japan, China has much higher population and a good chunk of them still are not even being utilized.

     

    Many people fail to acknowledge part of Japans problem is not just the deleveraging but the limited population.

     

    Japan has one of the worlds lowest unemployment. Its hard to get out of deflation and grow when there isn't anyone left that needs a job.
    23 Aug 2012, 07:53 AM Reply Like
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