Daily Dose of Deflation 14Nov2008
Report on Business: China positioned to unleash global deflation
China’s production is running as much as 50 per cent below capacity, as many industries that have been expanding rapidly are now being hit by slowing demand both domestically and abroad. Based on his estimates, China alone represents 7 per cent of the global supply/demand gap.
Steel capacity is roughly 40 per cent above 2009 production forecasts, which are also on the decline, and reports are surfacing that major production lines are being shut.
More on this topic
(What's this?)
Tobin's Q Ratio Says Equity Bottom Much, Much Lower
(naked capitalism, 12/10/08)
"Deflation has become inevitable"
(naked capitalism, 12/12/08)
Deflation Watch
(Jim Kingsdale's Energy Investmen..., 12/30/08)
In Praise of Savings and Deflation
(winterspeak, 11/4/08)
Related Posts:
