China’s market Leninism turns dangerous for the world ~ Andrew Evans-Pritchard

Following Black Monday’s record-breaking drop in the Dow  of 1090 points, China has responded to criticism that it is not in control of its $27 trillion debt bubble by lowering interest rates and  reserve ratio requirements.  Evans-Pritchard considers Black Monday’s implications for the global economy, particularly emerging markets which now comprise 50% of the global GDP and hold $4.5 trillion of U.S. dollar debt. With global debt increased  beyond levels seen pre-Lehman and a currency crisis potentially worse than that of the early eighties or late nineties, the day of reckoning for emerging market corporations has been deferred as the lacklustre recovery in Europe and the US continues and China’s stop-go economy  remains on probation.