The great hope for business leaders and those of the political sort was that China would pull the world out of the greatest economic downturn in 3 generations. This has failed to happen and is failing more with each passing day. China isn’t going to save the day. China has been built on a good amount of economic magic and it needs a correction desperately. It likely has one on its hands though this still is not the official consensus.
In this great post from Wolf Richter at The Testosterone Pit, he examines a world in recession, and its impact on one of the world’s greatest companies, the German giant, Siemens. The CEO of the company doesn’t see an engine pulling the world economy anywhere. Even though markets have risen in the US, he sees a slowing world economy generally and he is looking to layoffs in the face of significant headwinds. Siemens has business in nearly every country in the world.
(From The Testosterone Pit)
The trillions that central banks have printed and handed to their cronies went chasing after assets and have created all kinds of bubbles and immense wealth at the top. They obscured risks, distorted credit markets, and inflated stock markets that have now become drunk with this money and blind to the real economy. It makes sense: central bank manipulations were never designed to, and can’t, cure underlying economic problems—but they do get in the way of resolving them.