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Thread: Global downturn just begins!
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[quote=APAULT,320233]By definition, there is a global downturn: that is to say many economies are slowing. big deal. Just a year ago we were all concerned about the overheated world economy! China is 'paying through the nose' for iron, coal, oil, farm produce, etc simply because the sudden increase in demand cannot be matched by increased supplies in the short term. So the issue is this a controlled downturn or the beginning of a problem? It has not started for the right reasons, the US sub-prime debacle. Actually, this was resolving itself exactly as market theorists would expect, the bubble began to collapse and the world economies were affected to the extent that they were exposed to it. Overall, China may benefit because the USA's weakness will reduce the total demand for raw materials worldwide. This will help stem inflation and slow the economy to a more sustainable level [/quote]
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