"What happens in China will turn out to be far more consequential than any sting that Greece may deliver over the coming weeks or months."
According to Bloomberg News, an ongoing stock crisis in China has wiped out $2.36 trillion in market value for the country’s economy, an amount that is roughly 10 times Greece’s gross domestic product (GDP).
“What happens in China will turn out to be far more consequential than any sting that Greece may deliver over the coming weeks or months. As China’s equity markets lose their roar, the risk is that demand more broadly on the Mainland could take a hit. That would knock out an essential engine of world demand over the past decade. As dramatic as events in Greece currently appear, however, ultimately, it’s difficult to see these proving decisive for the world economy,” Frederic Neumann, co-head of Asian economic research at HSBC Holdings Plc in Hong Kong told Bloomberg.
Mark Williams at Capital Economic told the Financial Times that the country’s lawmakers are in a “state of panic” over the collapse.
John Vibes writes for True Activist and is an author, researcher and investigative journalist who takes a special interest in the counter culture and the drug war.
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