China's economy has had a very long series of deflationary quarters. But this will have little impact on the US economy, as only about 16% of its imports come from China. More important in the Federal Reserve's interest rate decision next week are energy prices and the domestic labor market, which is clearly showing signs of weakness. The oil price still seems to be contained and doesn't flash sharper inflationary spikes.
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I don't love that America and China are becoming less economically connected. That seems like it makes military belligerence more likely.
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That'swhere we're heading
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