What
does the Chinese slowing economy mean for the rest of us? A bad case of
economic flu seems likely, followed by a slew of next Lehman’s surfacing
globally, from all the malinvestment fostered by central banksters, QE forever, ZIRP and NIRP. “Capitalism’s
broken,” wailed fallen former guru Greenspan back in the 1990s, before he
really broke it 2007-2008. Now comes the aftermath.
Below, from the always
interesting ZeroHedge.com website.
Visualizing China's Mind-Boggling Consumption Of The World's Raw Materials
Submitted by Tyler Durden on
09/11/2015 21:15 -0400
Over the
last 20 years, the world economy has relied on the Chinese economic growth
engine more than it would like to admit. The 1.4 billion people living in the world’s most populous country
account for 13% of global GDP, which is significant no matter how it is
interpreted. However, in the commodity sector, China has another magnitude of
importance. The fact is that China consumes mind-bending amounts of materials,
energy, and food. That’s why the prospect of slowing
Chinese growth is likely to continue as a source of nightmares for
investors focused on the commodity sector.----The country consumes a big proportion of the world’s materials used in infrastructure. It consumes 54% of aluminum, 48% of copper, 50% of nickel, 45% of all steel, and 60% of concrete. In fact, the country has consumed more concrete in the last three years than the United States did in all of the 20th century.
China is also prolific in accumulating precious
metals – the
country buys or mines 23% of gold and 15% of the world’s silver supply.
With many mouths to feed, China also needs large
amounts of food. About 30%
of rice, 22% of corn, and 17% of wheat gets eaten by the Chinese.
Lastly, the country is no hack in terms of burning
fuel either. Notably,
China uses 49% of coal for power generation as well as metallurgical processes
in making steel. It also uses 13% of the world’s uranium and 12% of all oil.
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Fools
rush in where angels fear to tread. Don’t be too early in trying to catch a
falling sword. Better yet, wait until the sword finally hits the ground. This
falling sword has much further to fall, I believe.
In
other China news Friday, China autos sales tumble.
'From big to strong': China sees competitive edge in green cars
China's
auto sales could be heading for a rare fall this year, but one bright spot is
in so-called green cars, where sales have almost quadrupled so far in 2015.
With a
part-carrot, part-stick strategy of incentives and targets, Beijing is pushing
car makers to develop battery electric cars, seeing this as its best shot at
closing a competitive
gap with global rivals who have a 100-year headstart in traditional combustion
engines.
gap with global rivals who have a 100-year headstart in traditional combustion
engines.
Electric
powertrains are simpler to develop, and driving a push to green cars fits
President Xi Jinping's policy goal of reducing pollution.
With an
eye on both big subsidies and looming fuel economy targets, automakers in China
are earmarking at least 50 billion yuan ($7.86 billion) this year for developing
and making 'new energy' vehicles, a Chinese catch-all term for electric and
highly electrified cars, data compiled by Reuters shows.
---- Electric and plug-in hybrid car sales jumped 270 percent to 108,654 cars in January-August, the China Association of Automobile Manufacturers (CAAM) said on Thursday, and China is on track to overtake the United States as the world's leading producer, making more than 130,000 such cars this year, according to consultancy LMC Automotive.
The
government has set a goal of annual production of 1 million new energy cars by
2020, though industry researcher IHS Automotive forecasts output then at nearer
791,000.
As for
the carrot, drivers in Shanghai, for example, can save up to 182,600 yuan
($28,600) over a traditional gasoline-powered car, by taking advantage of free
license plates for some green cars and other subsidies, according to official
data and analysts' estimates.
However,
Beijing said in April it would roll back subsidies faster
than expected, and may now lean increasingly on fuel economy requirements that
grow progressively stricter to 2020.
than expected, and may now lean increasingly on fuel economy requirements that
grow progressively stricter to 2020.
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