The World Economics Thread

[Dong Zhou]

Greece should of never been aloud to join the currency union in the first place. As much the fault of the members of the currency union than Greece.

Indeed. Not that the rest of the Eurozone seems to want to take any responsibility for that

[Dong Zhou]

Deal seems to be done, subject to Greek Parliament approval, despite rows between EU finance ministers over Wolfgang Schäuble's stance. Not sure Greece will be happy at all with the international oversight but I believe they get funds

[Dong Zhou]

IMF has attacked the EU bailout of Greece for not providing debt relief, the forecasts on growth are ridiculous as are demands for that level of budget surplus every year while ignoring the Greek banking system needing reform.

[Tao Qian]

Yeah, actually the way EU handled this problem is so sad and stupid...

[Dong Zhou]

China has cut the value of the Yuan twice in two days, US not happy and seem to suspect a currency war. Others fear it is the sign that China's economy may be about to crash

[Bush Leagues]

China has cut the value of the Yuan twice in two days, US not happy and seem to suspect a currency war. Others fear it is the sign that China's economy may be about to crash

Does an economic collapse seem likely? I was under the impression that China's economy was quite good, among the world's leaders.

[Dong Zhou]

There have been worried about China bubble starting to collapse for a few months, there was a stock market collapse not that long ago so this has been quietly building for awhile. Maybe not a full blown crash but China's economy could be hitting a rough patch

[DragonAtma]

https://en.wikipedia.org/wiki/2015_Chin ... rket_crash

In June-July 2015, the Shanghai stock exchange's value fell by a third, stabilized, and then fell 8.5% on July 27th. Is the decline over? Maybe. Maybe not.

So I'd say a recession (if not an outright depression) is likely, and the yuan devaluing is just an attempt to prevent it from being worse. I am not, however, an economist.

[Tao Qian]

So DragonAtma was crearly right, the point is that the recession probably would be next year and not that one (since the big Chinese stock market crash didn't happen yet).

So my question is: does someons knows if Chinese companies are paying profits after or before Chinese new year? I think that if they pay after Chinese New Year, around the 10th of February would be the next fall in the stock markets...

[Dong Zhou]

Swiss 50-year yield falls below zero for the first time. All Swiss bond yields are now negative. Brexit being blamed as people seek a safe market