Sometimes two graphs can be worth a thousand words.
IF the world economy is well and truly on the right course then why is that global chemicals operating rates have yet to return to their pre-crisis levels? (see the top chart from the American Chemistry Council). This is a very long downturn by historic standards – six years, in fact.
Could it be that demand cannot return to its pre-crisis levels until the West addresses its demographic challenges?
And here is a another question for you. Why do people think that China will inevitably avoid a debt-driven economic crisis, or at the very least a very sharp correction in growth when the second chart shown above, from this article in the FT , suggests otherwise? Japan, South Korea and Taiwan all had lower increases in debt as a percentage of GDP compared with China and yet still suffered sharp economic correction. What makes China so special?
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