BRIC economies are now a drag on global finance

[Balog]

http://www.ft.com/intl/cms/s/2/2a6c3d6a-0f62-11e5-897e-00144feabdc0.html#axzz3eV3GSKEx

Interesting to see the slowdown of these country's economies.

[MillCreek]

I bet the prospects of economic malaise in China are keeping a lot of policy and economics wonks awake at night.

[MechAg94]

I would be less concerned here, but I get the impression our economic leaders in our FedGov have been manipulating our currency and everything else they can for the last 10 years or more to keep things rolling.  I am concerned we may drop into a deeper recession than we have been lately.  And I fear that less than what screwy things our FedGov might try to do in reaction to a deeper recession.

[makattak]

I'm just curious what is going to happen to the world now that we're all on the Japan model- the "lost decade" that's been going on for at least 2 now. (Developed world, that is.)

Something that can't go on forever, won't. But what happens when it stops?

[AJ Dual]

I bet the prospects of economic malaise in China are keeping a lot of policy and economics wonks awake at night.

Long term, I'm glad, if not hopeful for a complete implosion, despite the domestic pain it could cause.

The last thing Western Civ needs is a "Chinese Century", much less Chinese hegemony. Pacific Rim regionally, or globally.

[MillCreek]

^^^ I am going to reserve the new 'Ghost Fleet' novel as soon as it comes out.

http://www.wsj.com/articles/author-warns-u-s-military-to-focus-on-china-1435539010

http://www.navytimes.com/story/entertainment/2015/06/20/ghost-fleet-book-review-lawrence-korb/28818435/

http://www.usnews.com/news/articles/2015/06/29/ghost-fleet-depicts-war-between-china-us

[roo_ster]

I bet the prospects of economic malaise in China are keeping a lot of policy and economics wonks awake at night.

Well, if they are heavily invested in China or from whence China imports raw materials.

Otherwise, I am not so worried about reduced demand by China for raw materials.  Maybe get those commodity prices to cool down some.

And, really, why should they worry?  US.gov and the Fed and the Treasury will make good the losses of the largest investors.  That is the way is has been for a few decades, now:
1. Invest in volatile foreign market without pricing risk accordingly.
2. Rake off profit while it lasts.
3. Get the taxpayers to make up the lost principal.
4. Repeat with new risky market.

[RevDisk]

I bet the prospects of economic malaise in China are keeping a lot of policy and economics wonks awake at night.

China has been rigging its internal economy for quite some time. Economic malaise is going to happen eventually if the numbers ever come home to roost. And yes, it will impact the global economy.

However, won't be forever. China has a population of a billion people and modernization is creeping its way out of the cities into the rural areas. I doubt China will ever become as open about free trade as the West, but it'd be nice to actually do business in China rather than just buy stuff from them.