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Largest steel mill in China bankrupts - capital shortage blamed
invite response
2014 Nov 19, 12:52am 2,865 views 10 comments
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zzyzzx
2014 Nov 19, 1:44am
China’s measures to control pollution have put additional strain on its steel industry.
indigenous
2014 Nov 19, 2:12am
No different than the empty storefronts here!
Cept the Fed has done a slightly better job of camouflaging, at least from the American media point of view, the Chinese may see the exact opposite?
Those darn Indian steel mills are undercutting the Chinese, who previously undercut the Japanese, who previously undercut the Americans, who previously undercut the Europeans, who previously undercut the Indians during the Industrial Revolution. Looks like we've come full circle!
indigenous
2014 Nov 19, 3:15am
Those darn Indian steel mills are undercutting the Chinese, who previously undercut the Japanese, who previously undercut the Americans, who previously undercut the Europeans, who previously undercut the Indians during the Industrial Revolution. Looks like we've come full circle!
That and over/mal-investment is how the mercantilistic fortune cookie crumbles
Debt is the biggest killer because you have debt. When the Roman empire could no longer expand after basically taking over the known world - it collapsed. Debt works until expansion stops. Then its jubilee time.
Debt also results in centralized king making. When companies rely on debt to be competitive then those issuing the paper have control over what gets done or not.
As we constantly allude, deflationary pressures create a lack of capital as economies slow causing companies to borrow excessively to stay afloat. Debt is the biggest killer of companies during a depression as dwindling sales and the eventual inability to borrow to meet payrolls drags companies into bankruptcy. This is precisely what has happened to China’s biggest steel company, Haixin Iron and Steel Group
http://www.globaldeflationnews.com/largest-steel-mill-in-china-bankrupts-capital-shortage-blamed/