Tuesday, October 25, 2016

"As China's Economy Slows, a Look at What Could Happen"

As China's Economy Slows, a Look at What Could Happen

By NEIL GOUGH

China's growth rate of their economy has been slowing down year by year. Although it has been a fairly steady decline each quarter, this year's growth rate is slower than last years, which was already China's slowest growth rate in the last 25 years. Most economists say there could be three outcomes of this decline. The first is a financial meltdown, as China has a whole lot of credit piling up. The second is an increase in state spending to try to increase the growth rate. The third is the Japan outcome: tolerating economic stagnation for a time.

I did not know that this was happening in China, it's very interesting, I need to read more on why the growth rate is slowing. I really don't think that this will cause any sort of major financial crisis for China. Although the growth rate is slowing, at least there still is a growth rate, and it is fairly stable. I definitely don't think this will be a huge problem for other countries either, nothing like Europe struggling with the UK. I really am not sure which outcome China will face but hopefully it won't be for a while. I think I agree the the Japan outcome is probably the best for China. You just have to stick it out sometimes!

http://www.nytimes.com/2016/10/19/business/international/china-economy-slows-impact.html?_r=0

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Tuesday, October 18, 2016

"UK's September Inflation Surge Likely a Taste of More to Come"

UK's September Inflation Surge Likely a Taste of More to Come

By REUTERS

Post Brexit, the UK is facing the largest inflation jump they've had in two years. This is probably 
only the beginning for their economy. It's the highest it's been since November 2014. Prices are 
rising, which also means wages are falling for consumers. It is likely that this latest fall 
could push inflation to 3% within the next year. A lot of the inflation is due to the sudden jump 
in clothing prices (biggest since 2010), and rising fuel costs.

Okay! This makes me kind of mad because we all knew it was coming. When Brexit was being
voted on, person after person was pointing out how weak the pound would become, and here
we are. It's interesting that so many people voted for Brexit without properly examining all of 
the consequences that would follow (which kind of reminds me of a certain presidential 
election with a certain orange candidate). The economy is going downhill, prices are rising yet
people still need the same stuff. Wages are going down so it's going to get continually harder
to be able to purchase things! What I do wonder is why the economy was so bad back in 2014?
And is the economy really going to get a lot worse? Maybe the economists are wrong. Hopefully
this is the worst of the storm. All of this reminds me of the year that school districts had to lay
off hundreds of teachers from their staff. Something like that could very well happen soon.


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