I think you mean to say a 40% fall in the GDP growth rate, not in GDP itself.
Remember 6% GDP growth for China now is still much greater in absolute terms than 10% was a decade ago.
You really can't expect any economy that has become such a big part of the global economy to continue at 10%.
You can grow your export of shoes at 10% compound growth when you start from a 10% market share, but how can you keep doing that when you get to 50 or 60% ?
Doesn't mean that the Chinese economy is shrinking or weakening, just that it is maturing, and the days of growth on steroids is over.
Sadly as usual the miners have largely invested for the boom after it is over, certainly in coal and iron ore.
I am not sure what is likely to happen with base metal prices, but hardly the same story as iron ore and coal. Coal has its own unique challenges with analogies for its future perhaps better drawn with tobacco than with nickel.
You however will remain a bear, and the reasons will continue to be fitted to the conclusions, and your conclusions will remain right until they are wrong, and then they will continue to be wrong no matter what the facts because your conclusion will be determined independent of the facts.
EL
WSA Price at posting:
$2.15 Sentiment: None Disclosure: Not Held
