Blog | Commodities, Paper Assets

Asia’s Export Crisis

Read time ...

meet your own rich dad - start your quiz now

This month Robert Kiyosaki is speaking at a number of events around Asia and I have the pleasure of tagging along with him. So, in my blog this week, I would like to show you a series of charts that illustrate how the global recession is impacting Asia.

After decades of very rapid economic growth, China’s bubble economy has finally begun to deflate. China has massive excess capacity across practically every industry. Product prices are falling, corporate profitability is suffering and non-performing loans are rising sharply. Consequently, investment is slowing significantly and China is now buying less from the rest of the world. Chinese imports have been contracting at a double-digit rate all year.

The plunge in Chinese demand has caused commodity prices to crash back to levels last seen during the last century.

The combination of lower demand and much lower prices for commodities has caused a severe downturn in global trade. The contraction in world trade is now nearly as bad as at the peak of the crisis in 2009.

Japan’s exports are down 30% from the peak.

Korea’s exports are down 16% from the peak.

Taiwan’s exports are down 20% from the peak.

Thailand’s exports are down 11% from the peak.

Singapore’s exports are down 26% from the peak.

And, Malaysia’s exports are down 25% from the peak.

Since World War II, Asia has developed economically by following a strategy of export-led growth. Now that the Great China Boom is over, the rest of Asia faces a much more difficult outlook, particularly since the United States, Europe and Japan are also all too weak to drive global demand. The danger now is that the plunge in export revenues will soon lead to a new debt crisis in Asia, as well as throughout the rest of the Emerging Market economies. In short, the next phase of the global economic crisis has begun.

To learn how this crisis will impact you, subscribe to my video-newsletter, Macro Watch:

http://www.richardduncaneconomics.com/product/macro-watch/

For a 50% subscription discount, hit the “Sign Up Now” tab and, when prompted, use the coupon code: richdad

You will find more than 18 hours of video content available to begin watching immediately. A new Macro Watch video will be added approximately every two weeks.

Original publish date: November 15, 2015

Recent Posts

The 4 Essential Steps to Becoming a Successful Real Estate Investor
Real Estate

The 4 Essential Steps to Become a Successful Real Estate Investor (And The Team You’ll Need Along the Way)

Many people want to be successful real estate investors. The problem is that the average person starts at the last step of the investment cycle rather than at the beginning. Because of this, they often fail.

Read the full post
Here's Why Major Companies Are Betting Big on Bitcoin
Cryptocurrency

Here's Why Major Companies Are Betting Big on Bitcoin

Find out why major corporations like MicroStrategy, JPMorgan, and BlackRock are adopting Bitcoin, and explore crypto strategies and their impacts.

Read the full post
Benefits of paying for professional financial advice
Real Estate

Good Advice Isn't Free—But It's Worth Every Penny

When it comes to assets, the poor and middle-class are cheap, but when it comes to liabilities they often spend too much. Learn how to know the difference between good advice and bad advice.

Read the full post