Enter the Dragon: Will China’s Deal of the Century Save Congo?

July 16, 2012 by

Twenty-four trillion dollars. It is a number that beggars the imagination, almost 40% of the global economy, and it is buried in one of the world’s poorest and most violent countries: The Democratic Republic of Congo. Failed state, rape capital of the world, humanitarian catastrophe…Congo personifies all these but beneath the surface its dark earth holds $24 trillion of copper, cobalt, coltan, the bones and blood of information age manufacturing.

The Chinese Central Bank’s Delicate Tap Dance

July 16, 2012 by

This past week’s release of China’s second quarter GDP growth number – at 7.6 percent - was viewed as an ominous sign of the future direction of the global economy by some pundits, while others see the Chinese government’s stimulus measures as a hopeful sign that its economic growth will be higher in the second half of the year. It is important to understand that the root cause of the decline in China’s economic growth this year is not the trouble in Europe or funk of the global economy, but rather the unsustainable economic bubbles that have been created by the government, and the collapsing demand that has accompanied it.