Bloody hell, it goes from bad to worse with Bernanke. In South Korea he made the following points during a private sector forum in Seoul and reported by Reuters (link below).
My comments in italics ..
Former Federal Reserve Chairman Ben Bernanke said that China’s economic slowdown should not worry markets as there was no risk of a hard landing, and emphasized that a move to raise U.S. rates should be viewed as a positive sign for the world’s largest economy.
China is stuffed, they have been misrepresenting data for several years and I refer to the prior blog
Take the time to watch this video as it explains very succinctly the hard landing that China is experiencing…. If you are still in doubt then read Professor Michael Pettis here:-
China has to adjust to an export based economy to a consumer based economy, they have to go through a depression similar to what America did in the 1931 Great Depression. They have the knowledge on how to rebuild, but it will take time. Then China will surpass the US, as the Worlds major economy.
Bernanke anticipates 10% growth rate for China, like bloody hell! what is he smoking, this from the same guru that stated that there was no real estate bubble in the US before the financial crisis, yet he and his predecessor created the bubble in the first place.
Bernanke, who participated in an open interview at a private-sector forum in Seoul on Wednesday, said the expected U.S. rate hike would be “anticlimactic” when it happens and that there would only be minor negative impact on South Korea.
Then on the impact of the interest rate rise, gee I hope that the currency wars do end when the impact of the interest rate is felt worldwide, pity that South Korea has so much debt though, that is their problem. That will have an enormous impact domestically.
Sorry I have no idea what Bernanke is thinking….His comments are contrived and he must not fully understand what is happening around the world..
Now excuse me a minute whilst I have a chunder, to think this (…insert own descriptive noun here) gentlemen was actually in charge of the Federal Reserve Bank of the USA…. yep, definitely has upset dinner.