by Jeffrey P. Snider
Alhambra Partners
The focus on China and the Chinese economy is not just related to its size but more so the fact that it is the pivot point for the whole global system. In pure economic terms, as “end demand” from the developed world economies slows, the Chinese economy either absorbs that reduction (through its own internal “stimulus”) or passes it on to the resource economies further down the global supply chain. There is a similar process that works out in terms of the financial relations to these economic transitions, though these funding differences have very real implications that don’t seem to be incorporated into analysis of China.