Part 1 -
I told you China was full of it and could not be trusted. To all the Cramerites out there that are buying his waterfront property in Arizona, I told you so. Mish to the rescue again in Chinese Deflation Picks Up Steam; Recovery a Mirage . "Thus "stimulus" (here and in China) is guaranteed to fail, leaving still more overcapacity when it does." kind of says it all. China's got to create 20 million jobs a year - that ain't happening folks and as long as we're not buying they are screwed (shhh - don't let them in on that little secret). All this radical commodity frenzy is about is a bunch of hooey. OK, so for P3 China is out of the equation and their recovery (and future purchase of treasuries) is IMO less optimistic than ours.
UPDATE: More good news from China. In China’s Export Decline Worsens, Hampering Recovery you'll read about, "The collapse of world trade has cost millions of jobs in China and dragged growth to its weakest pace since at least 1999. Surging lending and a 4 trillion yuan ($586 billion) stimulus package are yet to establish solid foundations for an economic recovery, the central bank said last week." and more.
Update 2: I continue to pummell China
Part 2 -
I tried to get Meredith's vid off CNBS, but Blogger did not like the embed code and I'm not geek enough to fix it, so go visit Calculated Risk to check it out. I'm not going to elaborate other than if you listen to Meredith she lays out the ground work and timing that leads to P3 (the impending crash) perfectly. She ROCKS!
This video actually made me feel better. I love it when a plan comes together. I just hope we're all able to survive the impending doom.
