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More slow realisation today that the China adjustment is structural and growth is not coming back. Societe General describes this process as a policy error, which is an error in itself. China going ex-growth is the natural course of events as its demographic/property-driven era of growth ends. There is no pretty way to do this when it has run far too far.
The errors are all in what comes next given China will devalue instead of boost consumption.
As for SG’s views on the US and Europe, fuggedaboudit. If a massively deflationary broken Chinese economy can’t save them from inflation then their central banks will.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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