Doug Higgins sent a note on China from Nikkei Asian Review
Doug adds “The size of the layoffs—as well as their nature—may be quite significant. China has been economically stuttering—closing factories, slowing its export machine. Of course, the U.S. trade deficit continues. The Neoliberals and elites studiously ignore trade as a sign of anything important. Playing with interest rates will do nothing. Not much can be done as interest rates hover around zero and below (in some areas).”
Sandwichman in a reply states:
Apparently the story there is reduction of overcapacity that was built under stimulus program to get out of 2008 global slump. It’s “the old lady who swallowed a fly.” Swallowing one “remedy” after another to manage the ill effects of the previous remedy. Agreed, the interest rate panacea is worthless. The problem is something that “can’t happen” — general glut.
Meanwhile…(Sandwichman points to a CNBC report) and adds: Japanese exports tumbled at their steepest pace in seven years as a stronger yen weighed on international shipments.
CNBC.com staff | @CNBC
Wednesday, 17 Aug 2016 | 8:51 PM ET