The following is an excerpt from PAUL B. FARRELL | July 12, 2012 | Smartmoney.com |
America’s facing not one but four “fiscal cliffs”: Bush-era tax cuts, Pentagon budget cuts, social-program cuts and the continuing battle over “Obamacare.” China, though, has even bigger problems.
Five months ago, we quoted World Bank President Robert Zoellick’s warning of “a spreading crisis” in China that could consume the $75 trillion global economy. Back then we bluntly asked: “China? Or America? Who will crash the global economy first?” Think: China.
China’s economy of 1.3 billion people continues slowing, according to the latest GDP-forecast downgrade from Premier Wen Jiabao, reported Keith Bradsher of the New York Times.
Earlier this week, MarketWatch’s Carla Mozee reported that China’s slowdown is already impacting stocks in Brazil, one of China’s leading trading partners.
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