. With USA & Europe accounting for the lion share.
. If the World's consumers spend less, the Factory of world has less to produced.
. Even ArcelorMittal, the largest steel maker is cutting back on production.
. Even as China cuts price to compete and producing low quality impulse goods
. Even most have razor thin margin.
. The last crisis saw 80% of toy comoanies wiped out because of thin margin.
. Plus huge surplus collectively have gone into property speculation.
. Producing 64million vacant houses and apartments
. And millions of hundreds of thousands of ghost towns.
. Built out of debt financing for nobody as funds are siphoned out.
. Corruption at local level are rampant as municipals confiscate land illegally
To sell to developers who lend money from banks to build apartments for nobody.
. Plus the growing discontent of province towards central government
. Prefering more autonomy to manage and govern.
. So while the west faces a declining population amidst a rapidly aging one.
. China faces a growing young population & is pressured to feed it.
. One has to feed the old, the other has to feed the young
. Countries with the bulge in middle age will do well
http://www.guardian.co.uk/business/2011/oct/16/china-exports-decline-hard-landing
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