China’s stimulus falter might imply the end of credit expansion

Updated Jun 13, 12PM,

China’s private sector fix asset investment in crashing landing trend:
OJ-AK974A_CECON_16U_20160613094508

while yuan also down, together indicates private investors are bail out of China.
yuan

Day of Reckoning for long printing to invest?
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4pm, May 15, 2016
 
The stimulus launched by China at the end of 2015 and Spring 2016 had most people hoped for China to bounce back from downturn. That caused a flurry of rebound of commodities that China use and even a surge of “bulls” spreading to many sectors in and out of China.
 
As we predicated earlier in May 4, 2016, we thought this further credit expansion will only accelerate wealth outflow as wealthy real-estate tycoons are more likely to move wealth out than average citizens. The following data coming out this weekend prove our points are right: all industrial outputs, retails, investment drop much worse than analyst believed:

 

industrial production
 
retails
 
investment
 
As USD is set to strengthen from now to the end of the year, Chinese yuan will be under pressure. the quadruple blades of high debt at 282%, devaluation of YUAN, and newly falter of stimulus, default waves ahead, make any attempt to further stimulating unlikely as central bank will be busy combating currency issues. China’s vice premier Zhang Gaoli said at a forum in Beijing on the past Wednesday that further stimulus unlikely. Thus this could be the top of real-estate bubble and last failed attempt to stimulate by China and the end of 30 years of credit expansion.
 
Globally, most countries are having record amount of debts and interest rate are even negative. The powders of central banks are very limited. Thus this might likely trigger a global economic downturn.
 
Editor
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Disclaimer: We are not interested in politics other than profit from political event.
contact: editor@topcools.com
 

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