by Charles Hugh Smith
Of Two Minds
This decline is inevitable in fast-expanding economies that depended on export growth and investment booms.
The fundamental context of China’s economy is that it has traced out an S-Curve–as did previous fast-developing nations such as Japan and South Korea.
Gordon Long and I discuss why there’s no easy fix to the S-Curve in our new video discussion Bull in the China Shop (35:25).
[…] The S-Curve can be likened to a rocket’s trajectory: first, there’s an ignition phase, as the fuel of financialization, cheap labor and untapped productive capacity is ignited.