PG - The Global Economy Is Rapidly Slowing Down

• Between a domestic real estate bubble bursting, the Evergrande debt crisis, electricity power outages, plus negative service and manufacturing PMIs in September, China’s economic slowdown has been very swift.
• The practice of defaulting on foreign debt and trying to restructure domestic debt is common in emerging market countries, so China has clearly failed to graduate to a reliable industrial economy due to its selective debt payments and brazen neglect of U.S. dollar-denominated debt.
• In the U.S., economic growth has also slowed dramatically. The Atlanta Fed is now estimating only 0.5% annual third-quarter GDP growth, down from its previous estimate of near-6% annual GDP growth.

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