Globalization has shrunk the world In the past, economic turmoil in far off lands would take months or even years to reach the US. Our financial interdependence is absolutely amazing. You may think what goes on in Greece or China doesn’t have, or shouldn’t have much impact on the U.S. or U.S. markets. But it has the potential to cause a lot of mischief.
Today, the ripple effect of poor economic news comes to us via the internet and 24 hour news. The 800 pound economic gorilla in the mix is China. Main Street China is directly connected to Main USA.
China is much more significant and far more dangerous in terms of the warning signs.
China’s debt has quadrupled in eight years. And we have two bubbles that exist as a result of that tremendous increasing amount of debt. One is actually in the Chinese stock market. And of course, that’s been in the news, that the Chinese stock markets have taken a real tumble. Stocks have fallen over 30% and have done that in less than a month. There’s