China Collapse Of The United States And China

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China Collapse Almost 7 years removed from the 2008 Financial Crisis, many global economies have returned to a modest resemblance of stability and growth. In fact, by the end of 2015, the U.S. Federal Reserve and other leading economies had anticipated raising interest rates and abandoning quantitative easing. In order to stabilize the economy, the Federal Reserve imposed quantitative easing for multiple years; leaving interest rates near zero. Apart from Greece, even areas of the Eurozone have begun to exhibit strong spurts of growth. However what many expected to be a fruitful economic future may be coming to a halt. China, the second biggest economy in the world, has begun fall to its lowest level of growth since 2009. Following…show more content…
Needless to say, the rapid growth China has exhibited could not last forever. Over the past 5 years, growth in the nation has slowed to 7%. To put this in perspective, the U.S. grew 3.7% in Q2 of 2015 while the IMF projects global growth at 3.1% over the course of 2015. Even with slower growth than prior years, China’s growth still outpaces a majority of countries including advanced economies. Regardless, it has become a popular belief amongst experts that the nation is head towards collapse; pointing to recent events as substantiating evidence. Over the course of 2015, the nation has experienced significant downturn including sinking oil prices, shrinking manufacturing sector, devalued currency, and a plummeting stock market. At the heart of China’s fall are sharp declines in the stock market. Over the month of August 2015, the Nikkei 225 declined almost 12% with a near 9% dive on a single day. The pain extends beyond the stock market. Oil prices, which have been declining for months, reached a six year low this past month with concern from the Chinese stock exchange. Huge losses in the nations stock market triggered global sell offs and the devaluation of the yuan, leading to concerns Chinese demand for oil has decelerated. Perpetuating the slowdown, manufacturing has declined to its lowest level in three years. Contributing to sharp selloffs, the official purchasing manager’s index for August fell to 49.7;
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