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Labour -- too excited as labor -- double last China's yawning trade surplus is still -- But not nearly as much as it used to at seventeen billion dollars in October it's nearly two and a half billion bucks more than it was on on thoroughly.
The forecast was -- surplus more like 26 billion dollars so just exodus if China does indeed slow down.
Market analyst Ed Schafer says are headaches.
And the world's headaches could go up.
I'm you know only in this environment do we look at a surplus -- got there and say well boy in -- kinda.
Wind it right now China but it really is isn't a date -- is clearly momentum the.
That's going that's that's going slower here.
Yeah it's actually slowing down and the problem is that the world is relying on China to bail everybody out.
Chinese buying our US treasuries.
May be approaching the Chinese for the sovereign debt problem -- and in the Euro union.
It's if they start slowing down -- they're not gonna have enough money.
In their till two by other goods or by a securities around the world to park and this is the last piece.
That I'm looking for in the global slowdown all it seems that everybody's interconnected all the countries in the world there in -- we have a global economy.
And that economy right now is is -- we it would it was all working and everybody was doing well before 2008.
Everybody was having a party.
But now that they're slowing down in Europe that we slow down here United States everybody's saying OK who's gonna bail us out now once China starts to slow down.
Who's left will -- an alien force to come in the start pumping money into the global economy.
Well you know there might be some what you said it because I've noticed done.
When it came to a lot of these European countries in Jurassic Greece or Italy I do know they've knocked on Beijing's door.
I'm Beijing normal which would love to sort of exert some influence.
Has not and I do know they're very -- negotiators so I think there might be a little of that and who wanna buy into a basket case -- out of the price.
But -- in -- wonder whether it's grander than that are bigger than that to your point that China might just be guarding -- -- Assets exactly you know this a couple of signs -- that I I've seen now in the -- though in recent -- days.
Copper prices have dramatically dropped and that is a major economic sign it's used to be called doctor copper some people in the call.
You watch that for the economic stability and that is taken -- tremendous drop.
But more importantly the treasury US treasury issued bonds this week and they had -- auctions last month.
The book to bill ratio with the demand for the book for the US treasuries.
Has declined did -- -- demand has not been as strong.
Now not a strong from China are just not as strong period -- got a strong period now remember a lot of why engineering from zero.
Right but you know we yup I'm -- the longer term -- thoughts -- it but the but China has always been their premier leader in that they're gonna come in they're gonna by the US debt.
And I hear in the news that the reason that they demand was lower which -- investors.
One at higher yield I don't believe that's true.
I don't think there's enough cash around.
At this point to support to treasuries and the debt of -- nations around the world that is scary stuff but it -- depends.
-- -- thank you always.
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