“Sometimes the questions are complicated and the answers are simple.”
Commentary & Analysis
What comes after B?
Self-reinforcing downside of G-3 feedback loop being driven by the Double-Ds of Deflation – deleveraging and falling demand:
•Falling Global Demand and DeleveragingFalling
BEIJING, Nov 23 (Reuters) – China’s factory sector shrank the most in 32 months in November on signs of domestic economic weakness, a preliminary PMI survey showed, reviving worries that China may be slipping towards a hard landing and fuelling fears of a global recession.
BRUSSELS, Nov 23 (Reuters) – Euro zone industrial new orders slumped in September from August, EU statistics showed on Wednesday, the deepest fall since December 2008 and far worse than economists had forecast, in the latest sign that Europe may be heading for a recession.
LONDON, Nov 23 (Reuters) – The euro zone’s private sector contracted for a third month in November as a paralysing debt crisis dragged the currency bloc to the brink of recession. Purchasing manager surveys on Thursday pointed to the euro zone economy shrinking 0.5-0.6 percent in the fourth quarter, after 0.2 percent growth in the third quarter, data compiler Markit said, and suggest things are unlikely to improve anytime soon.
Looking at the chart above, what comes after B? If you said C, I think you are correct!