The fact that China is on the verge of outright deflation may prove to be more important to global economy than even U.S. Federal Reserve tapering of quantitative easing. According to Albert Edwards of Societe Generale SA (ADR) (OTCMKTS:SCGLY) (EPA:GLE), the most decisive macro factor for all markets will be any slide into deflation in China. Certainly many see this as conceptually possible because of China’s heavy over-investment. But is this fear now turning into reality? Recent Q2 GDP data contains the surprising fact that China’s implicit GDP deflator had slowed to only 0.5% year-over-year, noticeably weaker than the CPI data. Albert Edwards: China’s GDP…
China Is On The Verge Of Outright Deflation: Albert Edwards
HFA Staff
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