MaxedOutMama
Wednesday, August 22, 2012
FLASH Chinese PMI
Well, this does not really come as a surprise, but HSBC Chinese PMI drops to 47.8, and the output index dropped three points to 47.9. Note - this is the preliminary for August. The only thing expanding are stocks of finished goods, which can hardly be a good indicator for September, eh?
If you look at the employment, it has now escaped the lower bound of its oscillation and is headed down. New export business likewise.
PS: I keep reading all the stuff about an upturn, but it's beginning to remind me of the Chinese production of "Waiting for Godot". I had to read that thing in college. It was incredibly boring.
When you have a demand problem, monetary easing doesn't do much. If they are going to spend money, they need to put in subsidies for car purchases and stuff like that. Maybe cut taxes. Until inventories stop accumulating, the situation isn't going to get better.
If you look at the employment, it has now escaped the lower bound of its oscillation and is headed down. New export business likewise.
PS: I keep reading all the stuff about an upturn, but it's beginning to remind me of the Chinese production of "Waiting for Godot". I had to read that thing in college. It was incredibly boring.
When you have a demand problem, monetary easing doesn't do much. If they are going to spend money, they need to put in subsidies for car purchases and stuff like that. Maybe cut taxes. Until inventories stop accumulating, the situation isn't going to get better.
One last link: This is NOT an economic stimulus. Economically, in the short term it's a contractionary influence if they really try to execute.
Comments:
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This news is incredibly unexpected!
Well, this does not really come as a surprise...
Oh oh. I seem to have boxed myself in a bit. If only I would have thought to use sarcasm.
Hold on a second. Genius! ;)
Well, this does not really come as a surprise...
Oh oh. I seem to have boxed myself in a bit. If only I would have thought to use sarcasm.
Hold on a second. Genius! ;)
In other news, we should be back to our full reduced potential by 2028 if we stay on trend and nothing bad happens between now and then.
Hurray.
Hurray.
Mark, it is hard as heck to look at the price drops and not see a manufacturing recession in China.
Europe's in recession.
The US looks comparatively good, until one looks at the relative PMIs in the beginning of 2008. Then one realizes that we were much better off then.
Still, we remain a world bright spot.
Europe's in recession.
The US looks comparatively good, until one looks at the relative PMIs in the beginning of 2008. Then one realizes that we were much better off then.
Still, we remain a world bright spot.
MOM,
Still, we remain a world bright spot.
The grass over our septic tank looks greener to me. I cannot disagree.
1. I have had no desire to own the Euro.
2. I have had no desire to move to China.
Go figure.
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Still, we remain a world bright spot.
The grass over our septic tank looks greener to me. I cannot disagree.
1. I have had no desire to own the Euro.
2. I have had no desire to move to China.
Go figure.
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