This jutter has been coming for a while. I imagine the 'China is going to eat our economy' folks are looking a little sheepish right about now as people get to see just how fragile their economy really is when faced with a long term downturn in the commodities market.
In a way this has been in the pipeline since 2008, it's just had a long lag time to get here because China has been able to remain competitive until recently, but now it's having to devalue the Yuan in order to keep its edge over western markets.
For nations exporting from China it's not that bad, but for those exporting to China it's pretty horrible news. Australia is being hit pretty bad, Brazil too, and African nations are going to feel the pain.
Couple this with the falling oil prices, and the outlook in the coming months is...difficult. I wouldn't have said that we face another major crisis unless the bottom should fall out of the Chinese economy (which would require some major incompetence by the PRC government) but we're certainly going to dance around the edge a bit.
Still, at least all the Beckists who brought their gold have that to fall back on...right?
