Global Economy Cracks: China is Losing Their Footing
- ITM Trading Streamed live 4 hours ago
Links to slides and sources: https://www.itmtrading.com/blog/globa…
Also watch: What Negative Rate Bonds are Revealing,
THE DEBT BUBBLE IS POPPING NOW: The Last Recessionary Shoe Has Fallen,
Like the US did in the 1920s, China has been shifting to a consumer driven economy. In fact, consumption growth has, for the first time since the 1980s, outpaced growth in both exports and investments and now accounts for a full 76% of China’s GDP. So, it’s easy to see why the Chinese government is counting on the consumer to weather the current economic decline that was foretold by its yield curve that first inverted on May 11, 2017. Directly controlled by the government, the yuan peg to the USD is now breaking down through a series of devaluations. As the yuan falls, spot gold, in terms of yuan rises. Similar to spot gold moves in USDs, spot gold in terms of yuan is breaking long held resistance levels as it concludes a long-term cup formation. What does this mean? That the bull run in spot gold is just beginning.