Someday China's numbers won't matter
The US isn't strong enough not to care about them now. But one day it will be.
Maybe one day we will wake up and China won't matter. Maybe one day China will be down big and we'll have to say, "Oh, well, that's China," and leave it at that.
We are not at that day yet. In fact, we are still going to feel the pain of some Chinese import or export number that may or may or may not be accurate. It will send commodities down, which will then send emerging markets down, which will then send down the stocks of U.S. companies that do business in the emerging markets. That will send down the stocks of the banks most exposed to world trade, which will then send down the ETFs that encompass all the bank stocks, which will then help influence all trading, because the banks are so important.
And so on.
We just aren't strong enough not to care. One day we will be, though, and I say that only because Europe is hanging in there today, and Europe had always rolled over on poor China numbers because so much of the Chinese export market is taken by the Europeans. Somehow that has always translated into Europe's being weakened by China -- and not vice versa -- but the futures guys who control this stuff have never been keen on real causality.
Anyway, as we watch the commodity companies try to pull down the rest of the markets with their slumber, and as we weigh the implications of it all, remember that higher commodity prices are actually bad for most producers of goods and that we are a goods-producing country.
Just something to keep in mind as you think, "Maybe I have to join those futures sellers and blow out of the U.S. equity market because China simply isn't using enough copper."
That pretty much says it all.
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we let the tiger out of the cage. china will surpass USA in time.
profits being almighty, we sent our secrets to them, and set up shop. All for maximizing the dollar in profits.
we reap what we sow.
Supply siders all seem to try and solve our problems with cheaper cheaper cheaper. Life and an economy run by short sighted supply siders is what we have world wide and guess what? It isn't working for the masses. Sure we have a few rich elites amassing fortunes and an envious underclass thinking they may become part of it one day. But much like explaining human emotions to an engineer supply siders just can't dance to the sound of the music. You destroy your consumers and then sit and complain about no demand. Yes we will soon move away from China to India and then on to Mexico and Central America but one thing will remain the same. Supply side trickle down does not work in the long run. To watch supposed good business folks send their markets into purgatory by thinking they have all the "correct" answers continues. The dog continues to chase its' tail and I just keep getting older and laughing because there is nothing else one can do.
Cramer that was very funny -- one day China will not matter.
It's like we use to say when the US catches cold Europe gets sick.
Of course China is always going to matter and matter more and more each day.
The sad truth is China is about to imploded as the new leader Xi really believes the silly market forces are the right way to move China into the new world order.
What has served China's economy for 30 years now is that fact that they understand how to do a command economy. That put them ahead of everyone else on the planet.
Now Xi is destroying all that by adopting free market ideas. China is already on a projected course of destruction ahead of the USA. Not that USA is not going to self destruct by Sept 15, 2015 it's just that China will beat us to the punch most likely by March of 2015.
I'm really not sure how much people or people in this Country really know about China..??
In my opinion....We will need China, long after they need the U.S.
China has a burgeoning population, that's going to want better stuff and more of it someday...
And China could even be in the position of who they want to export to..
When they fully develop their Manufacturing and Resources, they may only want to support themselves and become a "closed Society" again..
More then likely they would be able to pick and choose, and they are not above that..
Although China has had some minor changes in their Societal Make-up..
They could fall back to:
And the Proletariat.....And they can accomplish it in a hurry..
Maybe one day we will wake up and China won't matter. Maybe one day China will be down big and we'll have to say, "Oh, well, that's China," and leave it at that."
Jimmy, literally every Major US company is basing their future Growth thus Earnings on China, but you say that doesn't matter. Jimmy you really are losing it these days.
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