It is now 1245z and the FTSE 100 UK share index stands at 6143.29, which is up
0.76%. With all that is happening in China, I was half expecting a
dramatic fall. It seems the stock market wants a recovery, whereas world
events are pulling the other way. I reckon we will see dramatic falls
before things start to recover. The world will move away from China,
much as they did with Japan. China will become too expensive.
"We ain't seen nothing yet", as the famous phrase went.
UPDATE 1738z: The FTSE 100 index closed 0.89% higher on the day.
The real dark-horse is Japan. The public debt is absolutely staggering, growth poor and no end in sight. It is so bad, I fear it is hardly reported, but probably around 10 trillion US dollars (1E12 dollars) and rising. If Japan defaults, it will make the Greek problems look truly insignificant and will send a tsunami of debt and banking defaults worldwide. At least Japan can print money to devalue (unlike the Euro, which has Germany driving hard against all the QE) but this will similarly destroy its own banks as well as international banking. China is also looking sick. I think we are all in for a rough ride, on a pyramid of playing cards. Hugh G6AIG
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