Yes, it looks lie the world economy is now entering a recession—one that the U.S. is so far escaping: Brad Setser: China's Slowdown and the World Economy: "China, it now seems, has entered into a real slump.... China's total imports remained pretty strong though until the last couple of months. But they have now turned down. Sharply.... China (still) isn’t that important a market for the rest of the world’s manufactures. China’s overall imports (of goods) are significant, at around $2 trillion. But about a third are commodities, about a third are parts for re-export (think $800 billion of processing imports vs. exports of around $2.4 trillion), and a bit less than a third are imports of manufactures that China actually uses at home.... A fall in Chinese auto demand has a big impact on Chinese domestic output (most Chinese cars are made in China, with largely Chinese parts, thanks to China’s tariff wall), a measurable impact on the profits of some foreign firms with successful Chinese JVs, a modest impact on German exports and, at the margin, a measurable impact on global growth in oil demand...
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#noted
