Tue, 10 Jul 2012 11:41:53 GMT
China is dealing with downward pressure on the economy
China is about to face a deflationary spiral. In 2011
the real money supply (M1) decreased the most since the modern
history of China records. Additionally, producer and consumer prices fell during
the last months. Orders from Japanese machine factories dropped by
14.8% in May, which is the biggest fall since 2001. Moreover, the joint volume of lending by the four biggest banks contracted