Economic Update: Global Trade Has Collapsed: “Nothing Short Of A Bloodbath”

So much for the leader of BRICS; China.
“The crash has been precipitated by China’s devaluation of the yuan, a move that observers saw coming for months given China’s weak economic fundamentals. China’s yuan devaluation means that China seeks to pay back its creditors with inflated currency and undercut America’s exports to China. The devaluation signals that the fake Chinese boom touted for years by the West has now failed. It also means that Chinese citizens will starve, because devaluing currency means that the Chinese people will no longer be able to afford foreign imports, including food.”.
“China’s economy has surpassed the United States’ in absolute terms, based largely on the back of massive debt and inflation. As of mid-2014, according to McKinsey & Co., China carried a total government, corporate and household debt of $28 trillion – 282 percent of the country’s annual GDP, according to Bloomberg. China built its economic boom on the back of borrowing, artificial stimulation of the credit markets, and subsidies to companies, particularly in construction. China has published statistics showing tremendous growth rates for years, but those growth rates were crafted from nonsense in the same way that the Obama administration has claimed historic economic recovery on the back of borrowing and tacit inflation”.
“China has been able to artificially prop up its economy because it is a tyranny. Back in July, Foreign Policy observed, “China destroyed its stock market in order to save it. Faced with a crash in share prices from a bubble of its own making, the Chinese government intervened ruthless, and recklessly, to turn those prices around.” The Chinese government kept boosting borrowing for purposes of investment in the stock market, even as its underlying economic fundamentals fell through the floor:”. “.
Prior to the crash, China’s stock market had enjoyed a blissful disconnect from reality. As China’s economy slowed and corporate profits declined, share prices soared, nearly tripling in just 12 months. By the peak, half the companies listed on the Shanghai and Shenzhen exchanges were priced above a preposterous 85-times earnings. It was a clear warning flag — one that Chinese regulators encouraged people to ignore. Then reality caught up.
Like I have been saying; Mr Putin better keep a close eye on those Chinese leaders as he signs on the dotted line with them in trade deals. Recall all those toasts as they raised their glasses in celebration of another trade deal either together, or with Central Asian countries. The Chinese leadership at that time knew damn well their own economy was built on shifting sands of their own making.