- Joined
- Sep 25, 2007
- Messages
- 201
Hi all,
An article from the November 13th edition of the Globe and Mail (Globe Investor). Excerpt:
He estimated that China`s production is running as much as 50 per cent below capacity, as many industries that have been expanding rapidly are now being hit by slowing demand both domestically and abroad. Based on his estimates, China alone represents 7 per cent of the global supply/demand gap.
"We believe that once Chinese companies start to fully factor in a 2009 recession in the global economy in terms of significant shipment and selling-price cuts, widespread global deflation will be inevitable," he said.
"With one country`s overcapacity responsible for 7 per cent of the world`s supply/demand gap, the anticipated deflation will likely turn out to be extremely severe," he predicted. "In the end, the only realistic way of closing this gap will be a correction brought about by prices collapsing."
http://www.theglobeandmail.com/servlet/sto...BNStory/energy/
Keith
An article from the November 13th edition of the Globe and Mail (Globe Investor). Excerpt:
He estimated that China`s production is running as much as 50 per cent below capacity, as many industries that have been expanding rapidly are now being hit by slowing demand both domestically and abroad. Based on his estimates, China alone represents 7 per cent of the global supply/demand gap.
"We believe that once Chinese companies start to fully factor in a 2009 recession in the global economy in terms of significant shipment and selling-price cuts, widespread global deflation will be inevitable," he said.
"With one country`s overcapacity responsible for 7 per cent of the world`s supply/demand gap, the anticipated deflation will likely turn out to be extremely severe," he predicted. "In the end, the only realistic way of closing this gap will be a correction brought about by prices collapsing."
http://www.theglobeandmail.com/servlet/sto...BNStory/energy/
Keith