Albert Edwards: China’s “chasm of deflationary doom”


Albert Edwards of Societe General on Chinese groeth.

The sharp fall in China’s Q3 GDP deflator has ‘massaged’ real GDP higher.

 Before I put my own interpretation on recent Chinese data, I want to just quickly comment on the zombie situation. Regular readers will know that we have been tracking the vulnerability of US inc. to rising rates. We note that the large and mega-caps have (unusually) been major net beneficiaries of higher rates even though net interest payments have, as usual, risen sharply for the rest of the corporate sector – see link. We have been warning of the likelihood of a larger-than-normal wave of corporate bankruptcies in a recession.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
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.