Article 2

This article talks about how the economy had been falling and it doesn't seem to be heading towards recovery. The article talks about the current conditions of China's economy that is very unbalanced and falling rapidly into debt. The author talks about China's overproduction of steel and how it has caused a huge decrease in prices. China has also been increasing their production of commercial malls and retail centers which is not a good move due to its citizens having no money. The author says that such an event is creating deflation in China. He also talks about how the United States' heavy investment in Brazilian goods is becoming an issue because shipment from Brazil has decreased 20% and is still going down. This article is an analysis of the global economy and a strong expression of concern due to ensuing deflation as the world economy transitions from a bull market to a bear market. The prices of commodities have been steadily falling for about three years or so, yet it is only now that the falling markets significance and effects are taking shape. China, which had been considered a ‘great hope’, is now becoming subject to rampant deflation. The steel industry is over developed and has seen large price reductions in recent years.