China Just Overtook The US As The World's Largest Economy

[the2real4mafol]

SamuelRSmith said:
China's imposing an import tax on coal which will hit Russia and Australia. This will be a large blow for both of their economies.

However, it's important to ask why they are imposing this tax: because the global price of coal is falling, and China's domestic industry cannot run at a profit at the global price level.

Falling coal prices are a terrible, terrible, sign. China is the world's largest coal consumer, and they primarily consume it for electricity generation. If prices are falling for coal, that likely means that demand is falling for coal, and thus, likely falling or lower-growth-than-expected demand for energy in China. Indicating China's real economy is in far worse shape than their Gov't or the IMF are reporting.

Of course coal is falling in price. People are trying to move towards other kinds of fuel. Their is also more competition now for it. And coal is probably the most plentiful fossil fuel out there.

Also, in general i think prices need to fall a bit if people aren't seeing pay rises