China and the World Economy; Debt and Long-Term Rates

Could Slowing China Impact Global Growth?

  • China’s economy has slowed, could be a drag on global growth
  • Chinese yuan has weakened against dollar amid growth concerns
  • Yuan’s strength is dependent on China’s pace of growth
  • China’s labor force, a key factor in growth, has been shrinking

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Debt, Deficits and Long-Term Rates

  • Long-term rates have been rising, lifting borrrowing costs
  • Rising inflation, Fed rate hike elevating borrowing costs
  • The supply of debt also accounts for rise in interest rates
  • Will more debt find its way to the market even as budget deficit shrinks?

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