The Collapse of Demand! The Case of China

We know, or at least think we do, that world demand is ‘collapsing’.  We’ve seen emerging power currencies fall significantly; equity markets deflate; and governments planning and then announcing fiscal stimulus packages.  But assessing the state of the BRICSAM economies is not easy.  None is more difficult to gauge than China.  It remains a rather daunting task to get a handle on the growth/lack of growth of the Chinese economy.

When I was last in China in December, it was impossible to get a ‘read’ on where growth was; or was going.  Could one identify growing domestic demand in China? Was this domestic demand beginning to sop up the ‘over capacity’ Continue reading