English Arabic French Portuguese Spanish


28 October 2015

Last week we mentioned China’s devaluation and briefly noted the fall of the Chinese stock markets and its negative impact on Africa.

Yesterday’s crash in China – which seems to go through its first fully-fledged capitalist crisis – and the US may be just a warning sign, and it may take a while longer before the big one manifests itself.
The tens of billions of dollars in stimulus measures (debt) that have been pumped and are being pumped into the markets in the US, Europe, Japan and China since 2008 seem to have vanished into the thin air they were fabricated in. The illusion of prosperity and economic recovery we witnessed remain just illusion, or simply put just credit growth. Unfortunately all those debts have to vanish from the global economy before any market can be returned to a functioning one, and by that time of course asset prices will be fraction of what they are now. It looks like we’ve found the recipe of deflation the likes of which the world may never have seen before in history.
Tough days ahead for Africa, and the world at large!

Login to post comments

The Pan African Chamber of Commerce and Industry was established in 2009 by 35 founding national business chambers to influence government policy and create a better operating environment for business.

Latest Tweets